DuPont Dow Elastomers Resolves Two Litigation Matters

DuPont Dow Elastomers LLC (DDE), a 50/50 joint venture between DuPont and The Dow Chemical Company (Dow), reached a plea agreement today with the U.S. Department of Justice (DOJ) that includes an $84 million fine that resolves all criminal charges
against it related to a DOJ investigation of the polychloroprene industry.

DDE has also agreed to settle a federal class action antitrust lawsuit
related to purchases of ethylene propylene diene monomer (EPDM), which is
another form of synthetic rubber.

As a result of agreements reached between DuPont and Dow that were
announced on April 8, 2004, DuPont agreed to fund 100 percent of any related
DDE antitrust liabilities and costs, up to $150 million, with DuPont also
funding more than 75 percent of any excess. DuPont recorded a first quarter
2004 pre-tax charge of $150 million for costs associated with ongoing DDE
antirust investigations and related litigation in the synthetic rubber
markets.

Following the resolution of these two litigation matters this week by DDE,
DuPont will increase its consolidated litigation reserve by $118 million on a
pre-tax basis. DuPont said that the impact on its fourth quarter 2004 results
would be a special charge of approximately $100 million pre-tax, or $.09 per
share, after reflecting payments to be made by Dow as provided for in the
April agreements.