CITY OF MIDLAND, THE DOW CHEMICAL COMPANY

REACH PROPOSED SETTLEMENT AGREEMENT

ON PROPERTY TAX APPEALS

The Midland City Council will consider a proposed settlement agreement for The Dow Chemical Company property tax appeals at its meeting scheduled for Monday, October 23.

Monday night’s approval of the proposed settlement would bring to a close ten years of tax appeals petitioned by Dow since 1997. It would also end all outstanding tax appeal issues with Dow and cancel the tax appeal trial at the Michigan Tax Tribunal which was scheduled to resume on Wednesday, October 18.

The amount of the proposed settlement would be paid for by the City’s fund balance reserved for tax appeal refunds, money the City has set aside in preparation for potential payment of tax appeal refunds. Details of the settlement amount will be made available in the City Council agenda packet the afternoon of Thursday, October 19.

“We’re very happy to be at a point where the City Council can consider action to bring this tax appeal to a conclusion,” said City Manager Jon Lynch. “We value Dow’s presence in this community, and we are very pleased that we were able to work together to conduct fair and equitable negotiations and that the outcome was a positive one for both sides.”

“We believe this proposed settlement is in the best interest of both parties,” says David Dupre, vice president of Dow’s Michigan Operations. “Michigan Operations competes with other Dow sites around the world for business investment. This will help make our site a more attractive investment to Dow businesses who are seeking to expand existing facilities or build new ones.”

If approved by City Council, the settlement agreement will be submitted to the Michigan Tax Tribunal for review by no later than November 10, 2006. The Tribunal would then have 30 days to either approve or reject the settlement. The City is meeting with other affected taxing jurisdictions to explain the specific impact of the proposed settlement.

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