Dow Corning Reports Sales and Profits for the First Quarter of 2008

MIDLAND, Mich., April 30 /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated net income of $160.4 million for the first quarter of 2008, a decrease of 13 percent from net income of $183.6 million reported in the first quarter of 2007.

Sales were $1.28 billion in the first quarter of 2008, 8 percent higher than sales of $1.18 billion in the same quarter of 2007.

"Dow Corning's sales increased in the first quarter, yet margins were strained due to increased raw materials and energy costs," said Dow Corning's Vice President and Chief Financial Officer J. Donald Sheets. "Our silicones revenues grew in the quarter; however as expected, polysilicon revenues and prices declined at our joint venture Hemlock Semiconductor as the company shifted to extended supply contracts."

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 NYSE: DOW and Corning Incorporated NYSE: GLW. More than half of Dow Corning's annual sales are outside the United States.

                           Dow Corning Corporation
                        Selected Financial Information
                        (in millions of U. S. dollars)
                                 (Unaudited)

                 Condensed Consolidated Statements of Income

                                               Three Months Ended March 31,
                                                  2008              2007

    Net Sales                                  $1,275.0           $1,178.3

    Net Income                                   $160.4             $183.6


                    Condensed Consolidated Balance Sheets

                                            March 31, 2008   December 31, 2007
    Assets

    Current Assets                             $2,755.4           $3,511.1
    Property, Plant and
     Equipment, Net                             2,882.4            2,542.4
    Other Assets                                2,474.1            1,145.2
                                               $8,111.9           $7,198.7

    Liabilities and Stockholders' Equity

    Current Liabilities                        $2,058.2           $1,266.8
    Other Liabilities                           3,227.9            3,188.1
    Minority Interest                             334.4              383.3
    Stockholders' Equity                        2,491.4            2,360.5
                                               $8,111.9           $7,198.7