Dow Chemical Annual Shareholder Meeting, Midland, Michigan, May 12, 2005

Remarks by Adam Seitchik, presenting Trillium’s shareholder proposal concerning toxic chemicals

Good afternoon, Mr. Chairman, Board of Directors and fellow shareholders.  My name is Adam Seitchik, and I am the Chief Investment Strategist for Trillium Asset Management.

My firm manages over $850 million dollars in socially screened assets for institutional and individual clients. Our proposal calls upon Dow to disclose how it is responding to scientific and public policy developments that point the way toward a far more restrictive market for core organochlorine product lines, and increased environmental liability associated with those products.

Shareholders are looking for straight talk on some key risks facing the company.  Dow is being sued in the U.S. and overseas for environmental damages that stem from both its core products and from the toxic chemicals that are byproducts of its core manufacturing processes.   For example, over 300 Dursban lawsuits have been filed since 1990. Advances in scientific techniques have made it possible for the US Center for Disease Control to determine that 93% of the US population has measurable levels of chlorpyrifos metabolites in our bodies – and one market study has estimated that Dow is responsible for 80% of that exposure.

A forthcoming European Union policy, known by the acronym REACH, will require chemical companies to provide data on their products including toxicity and exposure to humans and the environment.  Up to 20% of chemicals on the market will be discontinued. About one-third of Dow's revenues are derived from Europe.  Other international documents are paving the way for the elimination or restriction of certain chemicals that Dow produces.

The question that underlies this proposal is this: Will Dow’s future be business as usual, or will this company rise to the challenge of assessing risks from its toxic product lines, and aggressively phase in safe alternatives?

Without a more creative vision, Dow appears to be in a head-on collision course with changing public policies.  Improved disclosure practices and more innovative strategies are needed for the sake of the public’s health and the long-term bottom line.

Thank you.

Note: This proposal received almost 8% of the shareholder vote, representing over $2.2 billion in ownership capital.  These shareholders believe that Dow Chemical should improve its disclosure and strategic planning around toxic chemicals.