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DOW IMPLEMENTS NEW ACCOUNTING STANDARDS

 MIDLAND, Mich., Dec. 21 /PRNewswire/ -- The Dow Chemical Company (NYSE: DOW) announced today that the impact of two new accounting standards being adopted by the company will be reflected in its fourth quarter of 1992 results.
 The Financial Accounting Standards Board requires all U.S. corporations to comply with the provisions of Financial Accounting Standards 106 and 109 for fiscal years beginning after December 15, 1992. Dow will adopt the new standards early, making them effective for the company as of January 1, 1992. Earnings for 1992 will be restated as a result of these accounting changes.
 Financial Accounting Standard 106 covers accounting methods for retirement benefits other than pensions, including health care and life insurance. Dow will recognize the company's cumulative obligation for these benefits under current retiree plans as a one-time, after-tax charge of $935 million or $3.44 in earnings per share to be taken against fourth quarter of 1992 earnings.
 The cost of retirement health care and life insurance benefits were previously recognized as an expense as benefits were provided. In 1992, Dow has paid $57 million for these benefits. Due to the accounting change, Dow will also recognize an increased liability of $108 million for future costs, raising the company's total 1992 pre-tax cost for retirement health care and life insurance benefits to $165 million. Assuming that health care costs continue to rise and Dow's benefits plans stay the same, a similar or greater charge will be made in 1993 and beyond. Benefits for current and future retirees are continually reviewed by Dow and may change.
 The objective of Financial Accounting Standard 109 is to recognize the amount of income taxes payable or refundable for the current year and deferred tax liabilities and assets for future tax consequences based on a balance sheet approach. Dow's implementation of this new standard is estimated to result in a one-time, after-tax gain of more than $200 million or approximately 80 cents in earnings per share. The gain will be realized because the new standard allows Dow to accrue the future tax benefits of tax loss carryforwards and tax credit carryforwards, while requiring all deferred taxes to be recorded at current rates. This accounting change will have a small favorable effect on Dow's 1992 earnings, with the exact amount yet to be determined.
 Dow's adoption of the two new accounting standards will be reported as a combined charge of about $2.64 in earnings per share for 1992. However, the one-time adjustment for the change in accounting standards will not affect current cash flow.
 -0- 12/21/92
 /CONTACT: Doug Draper of The Dow Chemical Company, 517-636-2876/
 (DOW)


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

JG -- DE002 -- 8614 12/21/92 09:02 EST
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Date:Dec 21, 1992
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