Performance

In 2005, Dow Corning launched the following five-year environment, health and safety performance improvement goals:

• Employee and process safety: Aggressive reduction in injuries, occupational illnesses and process incidents
• Environmental compatibility: Reduce the environmental impact of our processes, products and technology
• Value recovery: Drive toward zero waste and emissions through reduction, conversion, recycle, re-use and recovery
• Energy efficiency:  Reduce average greenhouse gas (GHG) emissions through energy efficiency improvements, renewable energy and sequestration efforts

Dow Corning has consistently improved upon each of our performance measures as, demonstrated in the following information.  We also recognize there is more work to be done to accomplish these goals.  Dow Corning is committed to succeeding in these areas through innovation, hard work and the dedication of our employees around the world.

Employee Health and Safety

At Dow Corning, our corporate Safety value is based on our commitment to an injury-free work environment. Our focus is on preventing situations that cause injury or illness.  In 2007 we significantly increased attention on the issue of personal safety.

We have put into practice a new safety vision: Safe Work is Our Job™, which focuses on five key elements that define good safety practices.  Emphasis on these key elements, combined with employee and leadership engagement, are crucial to our safety success.

Employee Health & Safety:
(Occupational injury and illness rates and lost time illness/injury rates)

	2003	2004	2005	2006	2007
OIIR*	2.55	1.70	1.99	1.75	1.29
LTIR**	0.28	0.15	0.16	0.26	0.16

*OIIR (Occupational Injury and Illness Rate) is a measurement that represents all injuries and illnesses, per 100 employees, that occur on the job and require more than first-aid treatment.
**LTIR (Lost Time Injury and Illness Rate) is a measurement that represents the number of people for a population of 100 that missed work for one or more days during a particular year due to a work-related injury or illness.

Process Safety

Our corporate values are based on our commitment to provide a safe environment for our neighbors and the communities in which we work and live.  Dow Corning is committed to improving the safety of our chemical processes.

We have placed substantial importance on incident reduction over the last several years, with a focus on identifying and eliminating unsafe practices and procedures.  This increased emphasis, plus the implementation of our internal safety improvement plans, is making a real difference in our performance measures.

Process Safety:
(Property incident rates)        

	2003	2004	2005	2006	2007
PIR*	2.80	2.68	2.95	1.82	1.70

*PIR (Property Incident Rate) is a measurement that represents recordable property incidents (such as spills, releases, fires and explosions), per 100 employees.

U.S.Toxic Release Inventory (kg)

In 2006, Dow Corning did not dispose of toxic release inventory materials into landfills.  Dow Corning has reduced emissions to the air by 12% and emissions to the water by 90%, when compared to the 1997 baseline.  The decline from previous years’ values was due to reduced production for one of our product lines and focused efforts to reduce incidents.  All emission levels remain within the limits allowed by our operating permits.

	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Reduction 2006 vs 1997
Air	223,900	197,850	167,050	127,700	103,500	110,493	115,112	168,974	210,613	174,152	12%
Water	910	1,010	370	655	625	73	198	468	330	103	90%
Land	7,740	6,220	4,950	2,060	2,920	0	0	0	0	0	100%
Total	232,550	205,080	172,370	130,415	107,045	110,556	115,310	169,442	210,943	174,255	25%

Toxic release inventory data reports previous years’ activities.  Data for 2007 will be available in 2008.

Energy Efficiency

Dow Corning has set challenging five year energy and greenhouse gas (GHG) intensity goals.  We aim to reduce the amount of GHG emissions per kilogram of material we produce in our silicone, silicon, and semiconductor businesses by 20% by the end of 2009 (from an average baseline between 1998 and 2001).  As a result of the hard work and commitment of our workforce, we remain on track to meet these goals.

“We recognize that people around world have set higher expectations for corporations in the area of climate change and GHG emissions.  In light of this heightened attention, we are reviewing and updating our policies and strategies to take us well beyond our 2009 programs and targets. 

“Dow Corning processes and products are an important part of the solution to reducing global emissions.”

 - Peter Cartwright, executive director, environment, health & safety

Financials

Dow Corning reported outstanding results, with record sales and profits in 2007.  “The year was highlighted by Dow Corning’s continued expansion into new geographies including the opening of our newest office in Vietnam,” said Don Sheets, vice president and chief financial officer.  “We also announced a $1 billion project to increase capacity at our joint venture Hemlock Semiconductor Corporation.

“In 2008, we will celebrate our 65th year in business. Though 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.”

Year ended December 31	2003	2004	2005	2006	2007
Net Sales	2,872	3,372	3,878	4,392	4,940
Net Income	176	238	506	668	690