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EXHIBIT 99.1

April 29, 2004

Dow Reports Substantial Earnings Improvement
for the First Quarter of 2004

First Quarter of 2004 Highlights

•

Sales were $9.3 billion, up 15 percent from first quarter 2003 sales of $8.1 billion and a new quarterly record, reflecting an 8 percent increase in price and a 7 percent increase in volume.

•

Significant price, volume and productivity improvements were achieved in the first quarter, more than offsetting an increase of nearly $100 million in feedstock and energy costs above the very high levels of a year ago.

•

Net income rose to $469 million, a six-fold increase compared with $76 million a year ago.

•

Dow reported earnings of $0.50 per share, compared with $0.08 per share a year ago.

	3 Months Ended March 31
(In millions, except for per share amounts)
	2004		2003
Net Sales	$	9,309	$	8,081
Net Income		469		76
Earnings Per Common Share		0.50		0.08
Before Cumulative Effect of Change in Accounting Principle:
Income	$	469	$	85
Earnings Per Common Share		0.50		0.09

Review of First Quarter Results

The Dow Chemical Company (NYSE: DOW) reported sales of $9.3 billion for the first quarter of 2004, compared with $8.1 billion a year ago, an increase of 15 percent and a quarterly record. Net income was $469 million, and earnings per share were $0.50, both a six-fold increase from last year.

Volume increased 7 percent and prices increased 8 percent, more than offsetting a nearly $100 million increase in feedstock and energy costs above the very high levels of a year ago. Volume growth was particularly strong in Asia Pacific and Latin America. First quarter EBIT^* was favorably impacted by joint venture performance. Results also included the impact of charges related to ongoing restructuring activities.

"Significant productivity improvements were achieved in the first quarter, continuing to build on the structural cost reductions of 2003," said J. Pedro Reinhard, executive vice president and chief financial officer. "Broad-based economic recovery in the first quarter resulted in increased volume in all operating segments and geographic areas. In fact, this was

the first time that year-over-year volume increases were achieved in all operating segments since the second quarter of 2000."

In the Performance Plastics segment, sales increased 17 percent with strong volume in a number of end-use applications and across all businesses, with the largest growth in Polyurethanes and Epoxy Products & Intermediates. Dow Automotive sales grew substantially more than the industry through increased position at key accounts, particularly with customers in Europe.

Performance Chemicals sales increased 15 percent with higher volume and prices. Dow Latex posted a double-digit increase in sales, compared with a year ago, due to improved paper industry demand from advertising, magazines and packaging. Specialty Polymers volume was up 7 percent, compared with a year ago, reflecting increased demand for FilmTec reverse osmosis membrane elements, Methocel cellulose ethers and specialty chemicals of ANGUS Chemical Company.

The Agricultural Sciences segment had another record first quarter for both sales and EBIT, with sales up 20 percent and EBIT up more than 75 percent, compared with the first quarter of 2003. Volume increased in all geographic areas, led by Latin America and Europe. Florasulam cereal herbicide, launched in 2000, continued to show substantial volume gains, while insecticides growth was led by strong performance from spinosad insect control products.

The basics segments posted significant improvement, with more than a 200 percent increase in EBIT, reflecting improved industry supply/demand balances.

In the Plastics segment, sales increased 13 percent, and some margin restoration was achieved through effective price/volume management. Polyethylene recorded a double-digit increase in sales due to improved prices and sustained demand around the world. Dow customers who convert polyethylene into stretch film for packaging reported improving business conditions.

In the Chemicals segment, sales rose 22 percent compared with the same quarter of last year. Ethylene glycol volume increased by more than 25 percent compared with a year ago, due primarily to increased demand for polyester fiber in Asia Pacific. Vinyl chloride monomer profitability improved as industry operating rates increased.

"Dow employees continue to stay focused on the Company's financial improvement program, with specific concentration on price/volume and cost management, and ongoing restructuring—the factors which we can control," said Reinhard. "While volume gains make us more confident that industry conditions are improving, one must be mindful that historically high levels of feedstock and energy costs are still an issue affecting further margin restoration. The focus on improving earnings and financial strength will continue, and we are on our way to make 2004 a better year for Dow."

* Earnings before interest, income taxes and minority interests ("EBIT"). Reconciliation of EBIT to "Net Income Available for Common Stockholders" is provided following the Operating Segments and Geographic Areas table.

Upcoming Webcasts:

•

Dow will host a live Webcast of its first quarter earnings conference call with investors to discuss its results, business outlook and other matters today at 10 a.m. EDT on www.dow.com.

•

Dow will host a live Webcast of its Annual Meeting of Stockholders on Thursday, May 13, at 2 p.m. EDT on www.dow.com.

About Dow

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Note: The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

THE DOW CHEMICAL COMPANY—1Q04 EARNINGS
FINANCIAL STATEMENTS (Note A)

The Dow Chemical Company and Subsidiaries
Consolidated Statements of Income

		Three Months Ended
In millions, except per share amounts (Unaudited)		March 31, 2004		March 31, 2003
Net Sales		$9,309		$8,081
	Cost of sales	7,907		7,163
	Research and development expenses	251		237
	Selling, general and administrative expenses	363		355
	Amortization of intangibles	29		15
	Equity in earnings of nonconsolidated affiliates	140		39
	Sundry income (expense) — net	(28	)	(6	)
	Interest income	18		20
	Interest expense and amortization of debt discount	186		215
Income before Income Taxes and Minority Interests		703		149
	Provision for income taxes	204		47
	Minority interests' share in income	30		17
Income before Cumulative Effect of Change in Accounting Principle		469		85
	Cumulative effect of change in accounting principle (Note B)	—		(9	)
Net Income Available for Common Stockholders		$469		$76
Share Data
	Earnings before cumulative effect of change in accounting principle per common share — basic	$0.50		$0.09
	Earnings per common share—basic	$0.50		$0.08
	Earnings before cumulative effect of change in accounting principle per common share—diluted	$0.50		$0.09
	Earnings per common share—diluted	$0.50		$0.08
	Common stock dividends declared per share of common stock	$0.335		$0.335
	Weighted-average common shares outstanding — basic	931.7		914.6
	Weighted-average common shares outstanding — diluted	943.2		917.7
Depreciation		$462		$433
Capital Expenditures		$201		$223

Notes to the Consolidated Financial Statements:

Note A:

The unaudited interim consolidated financial statements reflect all adjustments which, in the opinion of management, are considered necessary for a fair presentation of the results for the periods covered. Certain reclassifications of prior year amounts have been made to conform to current year presentation. These statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2003. Except as otherwise indicated by the context, the terms "Company" and "Dow" as used herein mean The Dow Chemical Company and its consolidated subsidiaries.

Note B:

On January 1, 2003, the Company adopted SFAS No. 143, "Accounting for Asset Retirement Obligations." The cumulative effect of adoption was a charge of $9 million (net of tax of $5 million).

The Dow Chemical Company and Subsidiaries

Consolidated Balance Sheets

In millions        (Unaudited)			March 31, 2004			Dec. 31, 2003
Assets
Current Assets
	Cash and cash equivalents		$	1,926		$	2,392
	Marketable securities and interest-bearing deposits			47			42
	Accounts and notes receivable:
		Trade (net of allowance for doubtful receivables — 2004: $124; 2003: $118)		4,200			3,574
		Other		2,180			2,246
	Inventories			4,325			4,050
	Deferred income tax assets — current			554			698
	Total current assets			13,232			13,002
Investments
	Investment in nonconsolidated affiliates			1,906			1,878
	Other investments			2,013			1,971
	Noncurrent receivables			195			230
	Total investments			4,114			4,079
Property
	Property			40,783			40,812
	Less accumulated depreciation			26,847			26,595
	Net property			13,936			14,217
Other Assets
	Goodwill			3,213			3,226
	Other intangible assets (net of accumulated amortization — 2004: $424; 2003: $406)			585			579
	Deferred income tax assets — noncurrent			4,200			4,113
	Asbestos-related insurance receivables — noncurrent			1,117			1,176
	Deferred charges and other assets			1,485			1,499
	Total other assets			10,600			10,593
Total Assets			$	41,882		$	41,891
Liabilities and Stockholders' Equity
Current Liabilities
	Notes payable		$	221		$	258
	Long-term debt due within one year			1,084			1,088
	Accounts payable:
		Trade		3,112			2,843
		Other		2,112			2,041
	Income taxes payable			249			212
	Deferred income tax liabilities — current			252			241
	Dividends payable			317			331
	Accrued and other current liabilities			2,200			2,520
	Total current liabilities			9,547			9,534
Long-Term Debt				11,799			11,763
Other Noncurrent Liabilities
	Deferred income tax liabilities — noncurrent			1,135			1,124
	Pension and other postretirement benefits — noncurrent			3,545			3,572
	Asbestos-related liabilities — noncurrent			1,739			1,791
	Other noncurrent obligations			3,245			3,556
	Total other noncurrent liabilities			9,664			10,043
Minority Interest in Subsidiaries				393			376
Preferred Securities of Subsidiaries				1,000			1,000
Stockholders' Equity
	Common stock			2,453			2,453
	Additional paid-in capital			33			8
	Unearned ESOP shares			(30	)		(30	)
	Retained earnings			10,149			9,994
	Accumulated other comprehensive loss			(1,629	)		(1,491	)
	Treasury stock at cost			(1,497	)		(1,759	)
	Net stockholders' equity			9,479			9,175
Total Liabilities and Stockholders' Equity			$	41,882		$	41,891

See Notes to the Consolidated Financial Statements.

The Dow Chemical Company and Subsidiaries
Operating Segments and Geographic Areas

		Three Months Ended
In millions (Unaudited)		March 31, 2004			March 31, 2003
Operating segment sales
	Performance Plastics	$	2,164		$	1,847
	Performance Chemicals		1,576			1,371
	Agricultural Sciences		924			768
	Plastics		2,234			1,974
	Chemicals		1,276			1,049
	Hydrocarbons and Energy		1,059			959
	Unallocated and Other		76			113
	Total	$	9,309		$	8,081
Operating segment EBIT (1)
	Performance Plastics	$	191		$	136
	Performance Chemicals		142			122
	Agricultural Sciences		231			130
	Plastics		307			137
	Chemicals		173			34
	Hydrocarbons and Energy		(1	)		(21	)
	Unallocated and Other		(172	)		(194	)
	Total	$	871		$	344
Geographic area sales
	United States	$	3,471		$	3,103
	Europe		3,448			2,997
	Rest of World		2,390			1,981
	Total	$	9,309		$	8,081

(1)

The Company uses EBIT (which Dow defines as earnings before interest, income taxes and minority interests) as its measure of profit/loss for segment reporting purposes. EBIT includes all operating items related to the business and excludes items that principally apply to the Company as a whole. A reconciliation of EBIT to "Net Income Available for Common Stockholders" is provided below:

	Three Months Ended
	March 31, 2004		March 31, 2003
EBIT	$	871	$	344
Interest income		18		20
Interest expense and amortization of debt discount		186		215
Provision for income taxes		204		47
Minority interests' share in income		30		17
Cumulative effect of change in accounting principle		—		(9	)
Net Income Available for Common Stockholders	$	469	$	76

Sales Volume and Price by Operating Segment and Geographic Area

		Three Months Ended March 31, 2004
Percentage change from prior year		Volume		Price		Total
Operating segments
	Performance Plastics	11	%	6	%	17	%
	Performance Chemicals	8	%	7	%	15	%
	Agricultural Sciences	14	%	6	%	20	%
	Plastics	1	%	12	%	13	%
	Chemicals	8	%	14	%	22	%
	Hydrocarbons and Energy	7	%	3	%	10	%
	Total	7	%	8	%	15	%
Geographic areas
	United States	6	%	6	%	12	%
	Europe	5	%	10	%	15	%
	Rest of World	11	%	10	%	21	%
	Total	7	%	8	%	15	%

End of Dow Chemical 1Q04 Earnings Release

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