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 (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

SOURCE Dow Corning Corporation

Jarrod Erpelding of Dow Corning Corporation, +1-989-496-1582,
Jarrod.Erpelding@dowcorning.com