Dow Corning Reports Record Sales and Profits in 2007

Sales increasing globally for silicon-based technology leader 


MIDLAND, Mich., Jan. 31  /PRNewswire-FirstCall/ -- Dow Corning Corp. today reported consolidated net income of $167.1 million for the fourth quarter of 2007, equal to net income reported in the same quarter of 2006. For all of 2007, net income was $690.1 million, a record high and an increase of 15 percent from adjusted net income of $601.8 million in 2006. Last year's adjusted net income excludes a gain from a settlement with the U.S. Internal Revenue Service in the second quarter. No unusual items were adjusted from 2007 results.

Sales were $1.29 billion in the fourth quarter of 2007, 11 percent higher than sales of $1.16 billion in the same quarter of 2006. The fourth quarter marked the eighth consecutive quarter of record sales for Dow Corning. Sales for all of 2007 were $4.94 billion, 13 percent higher than sales of $4.39 billion in 2006.

"2007 was an outstanding year for Dow Corning, driven substantially by excellent financial results from our joint venture Hemlock Semiconductor Corp., which announced a $1 billion expansion in May," said Dow Corning's Vice President and Chief Financial Officer J. Donald Sheets.  "The year was also highlighted by Dow Corning's continued expansion into new geographies - including the opening of our newest office in Vietnam, as well as our ranking as one of Fortune magazine's Best Companies to Work for.

"This year will mark our 65th year in business and we have many challenges in front of us, such as unprecedented increases in raw materials and energy costs.  We're confident our team's commitment to innovation and meeting customer needs will help us sustain our success."

Dow Corning (http://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.

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                         Dow Corning Corporation
               Condensed Consolidated Statements of Income
                      (in millions of U.S. dollars)
                               (Unaudited)

                    Three Months Ended December 31,  Year Ended December 31,
                            2007        2006            2007        2006

  Net Sales               $1,294.2    $1,161.7        $4,943.1    $4,391.6

  Net Income                 167.1       167.1           690.1       668.4

  Adjustment for IRS
   settlement, after
   tax (1)                       -           -               -       (66.6)

  Adjusted Net Income (2)   $167.1      $167.1          $690.1      $601.8


  (1)  During the period ending June 30, 2006, the Company reached a
       settlement with the United States Internal Revenue Service regarding
       liabilities for tax years 1992 - 2003.

  (2)  Adjusted Net Income is a non-GAAP financial measure which excludes
       certain unusual items and which reconciles to Net Income as shown.



                         Dow Corning Corporation
                  Condensed Consolidated Balance Sheets
                      (in millions of U. S. dollars)
                               (Unaudited)


                                       December 31, 2007   December 31, 2006
  Assets

  Current Assets                           $3,511.1            $3,179.8
  Property, Plant and Equipment, Net        2,542.4             1,645.9
  Other Assets                              1,145.2             1,146.6
                                           $7,198.7            $5,972.3

  Liabilities and Stockholders' Equity

  Current Liabilities                      $1,266.8            $1,054.9
  Other Liabilities                         3,188.1             2,755.9
  Minority Interest in Consolidated
   Subsidiaries                               383.3               298.3
  Stockholders' Equity                      2,360.5             1,863.2
                                           $7,198.7            $5,972.3


DATASOURCE: Dow Corning Corporation



CONTACT:  Jarrod Erpelding of Dow Corning Corporation, [phone],





Web site:  http://www.dowcorning.com/ 

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