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DOW CORNING TO ADOPT ACCOUNTING CHANGE, TAKE CHARGE IN 1992

 MIDLAND, Mich., Jan. 13 /PRNewswire/ -- Dow Corning today announced that its 1992 results would reflect a change in accounting methods for retiree benefits and costs associated with restructuring activities. These charges will reduce 1992 after-tax profits by $155 million.
 "These charges are not related to the controversy over silicone gel breast implants, and do not affect current cash flow," said Edward Steinhoff, Dow Corning vice president and chief financial officer.
 Steinhoff said the company will record as of Jan. 1, 1992, an after-tax charge of $117 million to reflect a change in accounting methods for retiree health care benefits for years prior to 1992. In addition, the company's 1992 profits will be affected by an after-tax expense of $12 million to reflect the 1992 impact of this accounting change. Previously reported results will be restated to include this change.
 These changes reflect adoption of Financial Accounting Standard No. 106, a rule that covers various post-employment benefits such as health care and life insurance and applies to all U.S. corporations.
 Under this accounting standard, companies are required to accrue the cost of these benefits over the service life of employees. Previously, these costs had been accounted for as they were paid.
 Dow Corning also will record an after-tax charge of $26 million to cover costs associated with a variety of restructuring activities. These include the liquidation of a manufacturing subsidiary in Brazil and costs involved in global expense reduction, including elimination of low-priority activities, redeployment of people and reduction in the value of affected facilities.
 Dow Corning expects to announce financial results for 1992 in late January.
 Michigan-based Dow Corning Corporation, world leader in the production of silicones, is equally owned by The Dow Chemical Company (NYSE: DOW) and Corning Incorporated (NYSE: GLW).
 -0- 1/13/93
 /CONTACT: Kara Kuchinic-Wittenberg of Dow Corning Corporation, 517-496-5994/
 (DOW GLW)


CO: Dow Corning Corporation ST: Michigan IN: CHM SU:

SM -- DE023 -- 4565 01/13/93 16:33 EST
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Publication:PR Newswire
Date:Jan 13, 1993
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