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DOW CHEMICAL ANNOUNCES $192 MILLION IMPACT ON ITS EARNINGS RESULTING FROM PROPOSED SETTLEMENT BY DOW CORNING

 MIDLAND, Mich., Jan. 14 /PRNewswire/ -- Dow Corning Corporation, which is partially owned by The Dow Chemical Company (NYSE: DOW) (50 percent shareholder), announced today that it will take a pretax charge of $640 million ($415 million after tax) for the fourth quarter of 1993. This charge includes Dow Corning's best current estimate of its potential liability for breast implant litigation based on current settlement negotiations, and also includes provisions for legal, administrative and research costs related to breast implants, for a pretax total of $1.24 billion less expected insurance recoveries of $600 million. Where appropriate under accounting rules, amounts have been determined on a present value basis.
 As a result of this charge, Dow Chemical will record its 50-percent share of the after tax loss net of any tax benefits available to Dow. The estimated impact of the loss on Dow Chemical's earnings in the fourth quarter of 1993 and for the year will be $192 million and equal to 70 cents per share.
 "As we announced last year, the proposed global settlement involving Dow Corning could have a material adverse effect on our net income in the period in which the event is recorded, but it will not have a material impact on Dow's cash flow or overall financial position," said Enrique C. Falla, executive vice president of Dow Chemical.
 -0- 1/13/94
 /CONTACT: Douglas G. Draper of The Dow Chemical Company, 517-636-2876/
 (DOW)


CO: The Dow Chemical Company ST: Michigan IN: SU:

KT -- DE002 -- 2040 01/14/94 08:27 EST
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Publication:PR Newswire
Date:Jan 14, 1994
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