MIDLAND, Mich.--Aug. 8, 1995--Dow Corning
today reported record sales of $641.8 million for the second quarter of
        1995, up 16.2 percent from the $552.4 million recorded in the same
        period in 1994.


            The company reported a net loss for the quarter of $167.0
        million, including the impact of a previously announced special pre-
        tax charge of $351.1 million ($221.2 million after-tax) taken at the
        end of the quarter to reflect a change in the company's accounting
        method for its contribution to a breast implant global settlement.
        Excluding the impact of this special charge and other accounting
        adjustments related to Dow Corning's Chapter 11 status, the 1995
        second-quarter adjusted net profits were $50.2 million, an increase
        of 24.0 percent over the second quarter of 1994.


            For the first six months of 1995, revenues totaled $1.25
        billion, up 17.9 percent from the $1.06 billion reported for the
        first half of 1994. A net loss of $117.5 million was reported for
        this period.  First-half adjusted net profits were $99.7 million, an
        increase of 28.3 percent over net income of $77.7 million reported
        for the comparable period in 1994.


            "Our second quarter reflects outstanding self-discipline amongst
        our employees who have stayed focused on their jobs and on our
        customers around the world, during a period of potential distraction
        since Dow Corning's recent filing for protection under Chapter 11 of
        the U.S. Bankruptcy Code," said John W. Churchfield, vice president
        for planning and finance and chief financial officer.


            "Revenue growth for the second quarter was strong, despite
        softening markets in the U.S. and Europe - and the still slow
        economy of Japan. Growth in the rest of Asia remains strong.
        Overall, a favorable balance of prices, raw materials costs and
        operating efficiencies has helped us in the second quarter," he


            Dow Corning Corp. will no longer file quarterly 10Q reports or
        annual 1OK reports with the U.S. Securities and Exchange Commission.
        This reporting exemption is available to companies having a small
        number of securities holders.  The company will continue to prepare,
        and make available upon request, quarterly and annual financial
        statements comparable to those contained in 10Q and 1OK reports.
        Copies of these statements will be available after August 15 by
        calling Dow Corning at 517-496-5436.  Income statements and
        condensed balance sheets will continue to be included in quarterly
        financial press releases.


            Dow Corning Corp., a global leader in silicon-based materials,
        is a Michigan corporation with shares equally owned by The Dow
        Chemical Co. and Corning Inc.  More than half of Dow Corning's sales
        are outside the U.S.


                            Dow Corning Corporation
          Consolidated Statements of Operations and Retained Earnings
                                 (in millions)
                                      Six months                Three months
                                    ended June 30,            ended June 30,
                                     1995     1994            1995     1994
        NET SALES                $1,253.6    $1,061.5     $ 641.8    $ 552.4
        Manufacturing cost
            of sales                810.7       691.0       414.3     359.7
        Marketing and
           administrative expenses  216.5       194.7       116.1     101.4
        Implant costs               351.1           -       351.1         -
                                  1,378.3       885.7       881.5     461.1
        OPERATING INCOME (LOSS)    (124.7)      175.8      (239.7)     91.3
        Interest income, currency
        gains (losses) and other, net(3.2)       (3.7)        1.5      (1.7)
        Interest expense            (36.4)      (33.6)      (15.5)    (17.5)
          REORGANIZATION           (164.3)      138.5      (253.7)     72.1
        Reorganization costs          0.5           -         0.5         -
        Income tax provision
          (benefit)                 (55.5)       54.0       (91.7)     28.1
        Minority interests' share
           in income                  8.2         6.8         4.5       3.5
        NET INCOME (LOSS)          (117.5)       77.7      (167.0)     40.5
        Retained earnings at
          beginning of period       597.5       604.3       647.0     641.5
        Retained earnings at
           end of period           $480.0      $682.0      $480.0    $682.0
                              Dow Corning Corporation
                       Condensed Consolidated Balance Sheets
                                   (in millions)
                                                   June 30,     December 31,
                                                     1995          1994
        Current assets
        Cash and cash equivalents                   $272.5           $201.1
        Receivables, net                             535.5            416.2
        Anticipated implant insurance receivable     101.5            157.5
        Implant deposit                                  -            275.0
        Inventories                                  361.1            308.4
        Other current assets                         169.1            277.6
        Total current assets                       1,439.7          1,635.8
        Property, plant and equipment, net         1,235.8          1,191.9
        Anticipated implant insurance receivable   1,397.0            943.6
        Implant deposit                              275.0                -
        Other assets                                 539.1            321.9
                                                  $4,886.6         $4,093.2
        Liabilities and Stockholder's Equity
        Current liabilities
        Short term borrowings                         $33.1          $446.8
        Accounts payable                              140.3           160.2
        Implant reserve                                93.2           475.4
        Other current liabilities                     199.3           242.6
        Total current liabilities                     465.9         1,325.0
        Long term debt                                120.3           335.1
        Implant reserve                               403.2         1,286.9
        Other liabilities                              81.5           352.1
        Liabilities subject to compromise
        Accounts payable                               42.8               -
        Implant reserves                            2,007.5               -
        Notes payable and long term debt              654.6               -
        Other                                         360.3               -
        Total liabilities subject to compromise     3,065.2               -
        Minority interest in
           consolidated subsidiaries                  140.6            117.9
        Stockholder's equity                          609.9            676.2
                                                   $4,886.6         $4,093.2

        /CONTACT:  Barb Muessig, 517-496-8841, or Scott J. Seeburger,
        517-496-4078, both of Dow Corning/





            WILMINGTON, Del.--Aug. 8, 1995--The Columbia Gas System,
        Inc. (NYSE: CG), today reported net income of $30.9 million, or 61
        cents per share, for the second quarter of 1995.  This compares with
        net income of $47.8 million, or 95 cents per share, for the same
        period last year.


           The principal reason for the decrease was an after-tax
        improvement of $19.2 million in 1994 resulting from a reserve
        adjustment reflecting a favorable Federal Energy Regulatory
        Commission decision permitting Columbia Gas
Transmission Corp.
, the Corporation's principal pipeline subsidiary, to recover
carrying charges associated with natural gas exchange activities.


            After adjusting both periods for unusual items and Chapter 11
        bankruptcy-related issues, the Corporation had an after-tax loss of
        $4.3 million, compared to net income of $1.7 million in the second
        quarter of 1994.


            System Chairman and CEO Oliver G. Richard III said the $6
        million reduction in adjusted net income includes the impact of
        higher estimated unrecorded interest costs on pre-petition debt
        obligations that, on an after-tax basis, amounted to approximately
        $44 million in the current quarter and $36 million last year.  This
        reflects the impact of higher short-term interest rates and the
        increasing impact of interest on interest.


            Richard said that the current quarter results also reflect
        higher interest income on accumulated cash offset by the combined
        effects of lower wellhead prices for natural gas, reduced oil
        production, higher transmission segment operating costs and reduced
        gas sales for the distribution operations.


            Richard pointed out that the general rate case filed earlier
        this month by Columbia Transmission was designed to alleviate the
        impact that higher operating costs have had on earnings.


        Segment Operating Results

            Operating income for Columbia's transmission segment declined
        $6.1 million to $35.9 million in the second quarter of 1995.
        Columbia Transmission recorded additional revenues during the second
        quarter of 1994 because its average cost of gas met certain required
        competitive tests that were allowed when Columbia Transmission had a
        merchant function.  Higher operating costs also contributed to the


            The distribution segment recorded an operating loss of $7.9
        million in the current period which represented a $5.6 million
        improvement over the second quarter of 1994.  This was largely due
        to a $6.5 million weather normalization charge that was recorded
        last year as part of a comprehensive regulatory rate settlement in
        Ohio to reflect unusually cold weather experienced in the first
        quarter of 1994.  The positive effects of recent regulatory
        settlements, improved transportation volumes and a favorable
        adjustment for prior period costs were offset by higher distribution
        operating costs and reduced gas sales.  Ongoing marketing and
        customer service studies are expected to provide new opportunities
        to improve and expand distribution customer services.


            Lower natural gas prices and reduced oil production led to an
        operating loss of $200,000 in the oil and gas segment compared to
        operating income of $11.1 million last year.  Natural gas prices
        which averaged $1.86 per thousand cubic foot were 29 cents below the
        same period last year. Oil production declined 292,000 barrels
        because of normal production declines and shut-ins for well
        maintenance.  Oil and liquids production is expected to increase as
        new production comes onstream and well maintenance programs are
        completed.  Higher depletion rates and the effect of a favorable
        royalty settlement in the prior period also contributed to the
        decline.  Prices received for oil production averaged $16.98 per
        barrel, an increase of $1.82 over last year.


        Six Months Results

            Warmer weather and lower natural gas prices were the principal
        reasons that the Corporation's net income for the first six months
        of 1995 declined to $159.7 million, or $3.16 per share from $182.4
        million, or $3.61 per share in 1994.  Improved distribution segment
        rates tempered the negative effects of warmer weather and lower
        wellhead prices for natural gas.  After adjusting for unusual and
        bankruptcy- related items, net income for the first six months of
        1995 was $90.9 million, down $7.9 million from 1994.


            Income for both periods was improved by an estimated $86 million
        and $71 million, respectively, because the Corporation did not
        record interest expense on pre-petition debt obligations.


        Segment Operating Results

            Columbia's transmission segment reported operating income of
        $112.5 million for the first six months of 1995.  This was $16.5
        million below 1994 largely because of a $17.3 million prior period
        favorable adjustment because Columbia Transmission's average gas
        costs met certain competitive tests.


            For the first half of 1995, Columbia's distribution operating
        income was $108.3 million, up $9.4 million over 1994.  New rates in
        most of the segment's service areas improved results and eased the
        impact of warmer weather during the first half of 1995.


            Columbia's oil and gas segment reported an operating loss of
        $300,000 in the first half of 1995. During the same period last year
        the oil and gas segment reported operating income of $23.2 million.
        Contributing to the decline were lower gas prices, reduced oil
        production and the prior period reserve adjustment previously
        mentioned. These reductions more than offset improved oil prices and
        a small increase in natural gas production.


            Operating income of $9.6 million for other energy operations
        declined $5 million reflecting lower operating income for the
        propane operations due in large part to lower margins and volumes
        sold as well as higher revenues in the prior period associated with
        services provided to affiliates.


            The Columbia Gas System, Inc., is one of the nation's largest
        natural gas holding companies.  Subsidiary companies are engaged in
        the exploration, production, purchase, storage, transmission and
        distribution of natural gas and other energy operations such as
        cogeneration.  The Parent Company and Columbia Transmission have
        been operating as debtors-in-possession under the Bankruptcy Code
        since July 31, 1991.


                           The Columbia Gas System, Inc.
                      Summary of Financial and Operating Data
                                  Three Months             Six Months
                                  Ended June 30,          Ended June 30,
                                 1995       1994         1995       1994
        Income Statement Data
         ($ millions)
         Total Operating Revenue  474.7    523.0       1,526.6    1,681.9
         Income Before
          Accounting Change        30.9     47.8         159.7      188.0
         Net Income                30.9     47.8         159.7      182.4(A)
         Operating Income (Loss)
          By Segment:
          Transmission             35.9     42.0         112.5      129.0
          Distribution             (7.9)   (13.5)        108.3       98.9
          Oil and Gas              (0.2)    11.1          (0.3)      23.2
          Other Energy              1.7      1.8           9.6       14.6
          Corporate                (2.6)    (1.8)         (3.3)      (3.9)
           Total                   26.9     39.6         226.8      261.8
        Per Share Data
          Earnings Before
           Accounting Change ($)   0.61     0.95          3.16       3.72
          Earnings on Common
           Stock ($)               0.61     0.95          3.16       3.61
          Average Common Shares
           Outstanding (millions)  50.6     50.6          50.6       50.6
            (A) Includes the adoption of SFAS No. 112, "Employers Accounting
        for Postemployment Benefits", which required the accrual of
        postemployment benefits previously expensed when paid.
                          The Columbia Gas System, Inc.
               Summary of Financial and Operating Data (Continued)
                                      Three Months            Six Months
                                     Ended June 30,         Ended June 30,
                                   1995        1994        1995        1994
        Operating Data
         Oil and Gas Volumes:
          Gas Production
           (billion cubic feet)    16.2       16.8        33.9       33.4
         Oil Production
           (000 barrels)            696        988       1,438      1,868
         Transmission (billion
           cubic feet):
          Columbia Transmission
            Market Area           194.7      182.2       595.9      599.7
          Columbia Gulf
            Main-line             151.8      165.9       306.7      339.3
            Short-haul             53.7       58.2       104.4      133.3
          Eliminations           (150.7)    (154.1)     (302.0)    (318.0)
         Total Throughput         249.5      252.2       705.0      754.3
         Distribution (billion
           cubic feet):
           Gas Sales               37.5       41.5       170.6      187.2
         Transportation            58.7       52.8       135.5      115.5
         Total Throughput          96.2       94.3       306.1      302.7
         Degree Days-Distribution
           Service Territory
            Actual                  624        614       3,382      3,761
           Normal                   580        580       3,527      3,527
            % Colder (warmer) than
             normal                   8          6          (4)         7
            % Colder (warmer) than
             prior period             2         --         (10)         8

        /CONTACT:  W. R. McLaughlin, 302-429-5443, or H. W. Chaddock,
        302-429-5261, or Analysts: T. L. Hughes, 302-429-5363, or K. P.
        Murphy, 302-429-5471/