Dow AgroSciences LLC, a wholly-owned subsidiary of The Dow Chemical Company, today announced that it has formed a new company to provide the agriculture industry with access to a broad range of biotechnology resources. The new Indianapolis-based company, Advanced AgriTraits LLC, will serve as a clearinghouse for companies seeking to bolster their biotechnology offerings via strategic alliances and/or licensing arrangements for genetic traits, germplasm and other biotech capabilities.

Dow AgroSciences will launch Advanced AgriTraits by contributing access to its own proprietary
genes and a variety of crop traits including an extensive library of patent-protected insect control
technology. The creation of Advanced AgriTraits is another important step in the unfolding of the
Dow AgroSciences and Dow Chemical strategy which is to use biotechnology to grow the
agricultural businesses. The strategy involves, among other elements, the development of the
company's own technologies as well as various partnering alternatives that include alliances,
joint ventures and acquisitions.

According to Bill Tolbert, global biotechnology business leader for Dow AgroSciences, the
ultimate vision for the new company is to create the most comprehensive portfolio of genetic
traits, biotechnology tools, and elite germplasm available to companies around the world.

"Advanced AgriTraits will aggressively seek technology partners who wish to either offer or
acquire access to technology. Such technology will include 'input' traits such as insect
resistance, herbicide tolerance, and disease resistance, as well as selected 'output' traits, which
may include, among others, oil content modification or enhanced nutritional qualities," Tolbert
said. "Ultimately, the licensing network will provide the marketplace with a more advanced
selection of biotech products, while providing the companies involved with an efficient and
cost-effective way to build on their own technology strengths without making risky and expensive
acquisitions."

Illinois Foundation Seeds, Inc. to sign first agreement

Illinois Foundation Seeds, Inc. (IFSI) has indicated in a letter of intent with Dow AgroSciences
that IFSI plans to license to Advanced AgriTraits rights to a substantial portion of IFSI's portfolio
of proprietary germplasm. Under the proposed agreement, IFSI would receive non-exclusive
marketing rights to the new trait-enhanced products and IFSI will also perform breeding, testing
and production services for Advanced AgriTraits.

Dow AgroSciences and IFSI signaled their commitment to the new licensing network by
announcing their intent to exchange minority ownership interests. IFSI plans to receive from Dow
AgroSciences a 16.4 percent ownership interest in Advanced AgriTraits, and Dow AgroSciences
would receive newly issued shares of IFSI amounting to approximately 10 percent of the
company as part of the agreement.

Dale Cochran, president of Illinois Foundation Seeds, said, "There is strong desire on the part of
many U.S. and international seed companies and farmers to have more product options in the
marketplace. IFSI, through Advanced AgriTraits, plans to provide our customers and the industry
with a strong portfolio of elite foundation corn genetics combined with the very best
value-enhanced trait technology. Once in place, the Advanced AgriTraits licensing network will
expand the seed industry's access to quality biotechnology traits."

IFSI plans to significantly expand IFSI's foundation seed breeding and production capabilities,
including production of products that combine multiple value-added traits, upon the creation of
the Advanced AgriTraits collaboration.

Illinois Foundation Seeds, Inc., based in Champaign, Illinois, was formed by independent
seedsmen in 1937. Today, IFSI is the second largest foundation seed company in the U.S. and
has the single best selling inbred line used in the commercial seed industry. With research
stations throughout the Midwest, Illinois Foundation Seeds is uniquely positioned to develop and
produce high value foundation seed for the changing needs of its customers and agriculture.
Illinois Foundations Seeds is also the world's largest supplier of Xtra-Sweet hybrid sweet corn seed. Foundation seed companies supply germplasm to commercial seed companies for their hybrid selection programs.

Dow AgroSciences LLC, based in Indianapolis, Indiana, is a global leader in providing pest
management and biotechnology products that improve the quality and quantity of the earth's food
supply and contribute to the safety, health and quality of life of the world's growing population.
The company employs more than 3,000 people in over 50 countries and has worldwide sales of
more than $2 billion. Dow AgroSciences is a wholly-owned subsidiary of The Dow Chemical
Company.

The Dow Chemical Company is the fifth largest chemical company in the world, with annual
sales of more than $20 billion. Dow manufactures and supplies chemicals, plastics, and
agricultural products for customers in 164 countries, and employs approximately 43,000 people
worldwide. For more news and information about Dow, please visit its web site at www.dow.com.

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