Dow Corning And WACKER Receive Government Approval to Build Siloxanes Facility in China

--------------------------------------------------------------------------------
ots-CorporateNews transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
--------------------------------------------------------------------------------

Dow Corning Corporation (Midland, Michigan, USA) and Wacker Chemie AG
(Munich, Germany) announce that their manufacturing joint venture
company Dow Corning (Zhangjiagang) Co, Ltd. received official
approval from the Chinese government to jointly build a world-class
siloxanes manufacturing facility in China.

The new complex will be located in the Jiangsu Yangtze River Chemical
Industrial Park, Zhangjiagang City, Jiangsu Province. Land
preparation and early construction tasks are under way. It will
benefit the growth of the silicone industry in China by providing a
stable and quality supply of silicone basic materials, "building
blocks" for many different products that are used by various
industries. Dow Corning and WACKER also established another joint
venture company to build and operate a fumed silica plant on this
integrated manufacturing site.

The chemical park in Zhangjiagang provides distinct advantages,
especially superb port facilities, and access to quality local
talent. The companies very much appreciate the cooperation and
support of Chinese government at local, provincial and central levels
to help identify and approve construction of the new plant at this
strategic location.

Under the joint venture agreement, Dow Corning will be responsible
for the construction and development of the joint siloxanes
production facility, and WACKER for the joint fumed silica plant. The
silica plant is already under construction. Siloxane is a key
starting material for the production of silicones. Major silicone
application industries include: construction, chemicals, cosmetics,
textiles, automotive, paper and electronics. Fumed silica is used as
an active filler in silicone elastomers, as a viscosity-adjusting
agent in coatings, printing inks, adhesives, unsaturated polyester
resins and plastisols or as a flow aid, for example in the cosmetics,
pharmaceutical and food-processing industries.

Dow Corning and WACKER each view the Asia region and China as a high
priority geography with the potential for immense growth over the
next several years. Investing in a state-of-the-art integrated
siloxane and fumed silica manufacturing facility will help each of
the companies to better serve their own downstream customers in this
important region.

Dow Corning and WACKER will continue independently to serve their
respective customers. Both companies will develop and operate
separately their manufacturing facilities for finished products.

About WACKER WACKER (www.wacker.com) is a globally operating chemical
company headquartered in Munich, Germany. With a wide range of
state-of-the-art specialty products, WACKER is a leader in numerous
industrial sectors. Its products support countless high-growth
end-user sectors such as photovoltaics, electronics, pharmaceuticals
and household/personal care products. The WACKER Group posted sales
of around EUR 2.76 billion in 2005, of which some 80 percent were
generated outside Germany. WACKER employs around 14,400 people at 22
production sites in Europe, the Americas and Asia, and about 100
sales offices worldwide. Wacker Chemie AG is listed at the Frankfurt
(Germany) Stock Exchange (ISIN: DE000WCH8881).

About Dow Corning Dow Corning (www.dowcorning.com ) provides
performance-enhancing solutions to serve the diverse needs of more
than 25,000 customers worldwide. A global leader in silicon-based
technology and innovation, offering more than 7,000 products and
services, Dow Corning is equally owned by The Dow Chemical Company
and Corning, Incorporated. More than half of Dow Corning’s annual
sales are outside the United States. It recorded $3.88 billion in
global sales in 2005.

end of announcement euro adhoc 08.08.2006 13:00:52
--------------------------------------------------------------------------------

ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Wacker Chemie AG
Christof Bachmair
+49 (0)89 6279 1830
christof.bachmair@wacker.com

Dow Corning Corporation
Mary Lou Benecke (USA)
Tel. +1 989-496-8689
Marylou.Benecke@dowcorning.com

Karen Heenan-Davies (Europa)
Tel. +44 1446 723 498
Karen.Heenan_Davies@dowcorning.com

Liliana Ng (China)
Tel. +852-2835-0387
Lilian.Hg@dowcorning.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: CDAX, MDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade