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IOSP is at $16.274 as of Aug 20th 2008 at 13:39 ET 0.214

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INNOSPEC FEATURED IN THE FINANCIAL MEDIA

Innospec featured prominently recently in two leading financial media outlets-US cable TV network CNBC, and online site TheStreet.com. The company was featured as the top small and mid-cap stock pick by Jonathan Vyorst, Paradigm Value Fund Portfolio Manager, in the "5-Star Investors" segment of CNBC on June 16. Innospec was also recently featured as an undervalued stock "with the potential to make big strides" by market commentator Bill Trent in the "RealMoney" section of TheStreet.com.

"Innospec is one of the largest makers of diesel fuel additives, and right now we're seeing a paradigm shift in the United States and in Europe toward more diesel engines," Vyorst told CNBC. "Environmental regulations now also require that companies add more additives to diesel fuel, so these guys are making profits both from volume and from additional environmental regulations."

RealMoney's Bill Trent featured Innospec as part of a series of articles of firms that are undervalued because of their small Wall Street following. Innospec trades near the average price-to-book ratio for the industry despite having one of the highest returns on equity among its peers, Trent says. "The company' growth and free cash flow make it one to watch in the quarters to come," he says. That growth and a modest value expansion "could combine to total a 20% average annual return."

INNOSPEC WINS TWO PRESTIGIOUS CIA AWARDS

Innospec scored a double victory in this year's Chemical Industries Association (CIA) awards, the premier accolades for the UK chemical industry, scooping the top prize as Company of the Year, as well as the prestigious Reputation Award. CIA paid tribute to Innospec's efforts that have dramatically transformed its business in recent years, demonstrating proven excellence in the areas of growth, sustainability to the UK economy and investment in people.

"It is great to see a company positively transform itself over the years. Innospec is a prime example of turning ideas into money," said Steve Elliott, CIA Chief Executive. "Once a single product company, Innospec has diversified its product range by investing heavily in R&D and innovation," Elliott said. In addition, the Reputation award recognizes Innospec's efforts in actively engaging with employees, the local community, and schools, he said.

"Winning these awards is a great honour for our company, and a testament to the talent and dedication of our employees," said Paul Jennings, Innospec's President and CEO. "We wanted to win the hearts and minds of our stakeholders through a carefully planned and well-executed strategy combining great communication with delivery of excellent results," Jennings said. "These prestigious awards show that we have achieved that."

SALES RISE, BUT COSTS AND CHARGES HIT PROFITS

Innospec reported healthy sales growth in second-quarter 2008, but earnings were reduced by rising costs and the impact of charges and write- offs. Sales rose 3%, to $145.3 million, but net income fell to $0.8 million ($0.03 per diluted share), compared with $6.8 million in the same quarter last year. "Our results reflect in part our decision to write off certain costs related to potential acquisitions rather than proceed with deals that ultimately did not make sense for Innospec shareholders," said Paul Jennings, President and CEO.

Fuel Specialties delivered a solid performance, Jennings said, with operating income up 6%, to $15.2 million, on a 10% jump in sales, to $94.3 million. Octane Additives was in line with expectations, with operating income of $3.5 million, compared with $6.9 million a year ago, on a 39% decline in sales, to $13.1 million. Active Chemicals had a very difficult quarter, however, in part due to sharp increases in energy and raw material costs. It reported an operating loss $2.4 million, compared with operating income of $1.0 million a year ago, although sales were up 11%, to $37.9 million.

"Our large Fuel Specialties business continues to perform well in the face of an increasingly challenging operating environment," Jennings said. "Active Chemicals should benefit as it passes on more of its cost increases in the months ahead, and as it becomes more fully integrated with Fuel Specialties in a single streamlined organization."

INNOSPEC GETS READY FOR REACH

Innospec is getting ready for REACH, the European legislation that requires registration of toxicological data on all chemicals exceeding 1,000 kg produced or imported into the EU per year per company. Innospec intends to pre-register all substances that it manufactures and imports by December 1, 2008 and work with its suppliers to ensure they pre-register all materials supplied to the company.

"We at Innospec fully support the aims and objectives of REACH, which are to ensure the enhancement of protection for consumers and the environment, without loss of competitiveness for industry," said Richard Shone, Vice President of Safety, Health and Environment. "We have a dedicated and knowledgeable REACH team covering all parts of our business ready to answer questions from suppliers or customers."

Part of the registration process will involve notifying all downstream users of a product and providing exposure scenarios. "We seek the support of our customers to ensure that we have a full understanding of all relevant downstream uses, which is critical, because a product can only be registered and used under REACH for specified downstream uses," said Shone. "Equally, we will be making suppliers aware that they need to register our applications as downstream uses, and that we are willing to help them develop the necessary exposure scenarios."

NEW SURFACTANT'S BENEFITS ARE CRYSTAL CLEAR

Innospec Active Chemicals has introduced an exciting new surfactant for personal care applications. "Pureact SLMI-85 (sodium lauroyl methyl isethionate) provides luxurious lather, excellent skin feel, extreme mildness and the ability to create crystal-clear formulations, perfect for use in shower gels, facial cleansers, shampoos and other personal care products" said Samantha Gardner, Marketing Manager for Innospec Active Chemicals. It is also readily biodegradable, derived from renewable resources, sulfate-free, nitrosamine free and dioxane free.

"Pureact SLMI-85 is the result of a technical collaboration between Innospec and Huntsman Chemical Company" Gardner said. "It is extremely mild and can be used as a primary or secondary surfactant and is ideally used where a dense, luxurious foam and elegant after-feel is desired," she said. "It has excellent water solubility properties which allow it to be used in creating clear liquid cleansing systems."

Although Pureact SLMI-85 is not yet in commercial scale production customers can request samples via the Innospec website.

INNOSPEC REALIGNS BUSINESS TO FOCUS ON KEY REGIONS, MARKETS AND CUSTOMERS

Newark, Del. - June 23, 2008 - Innospec Inc. (NASDAQ: IOSP) today announced a further streamlining of its business. Innospec plans to move to an integrated regional model and will now run its growth businesses as one streamlined business operating across three geographical regions - Americas; Europe, Middle East and Africa (EMEA); and Asia-Pacific - and will report its earnings as one Global Specialty Chemicals business rather than separating into the two separate business areas of Fuel Specialties and Active Chemicals. The Octane Additives business will continue to be reported as a separate business.

Paul Jennings, Innospec's President and CEO, said, "The further streamlining into a unified, sales-led global business will enable us to focus on rapidly meeting customers' needs anywhere in the world."

Under the new structure, all Innospec Fuel Specialties and Active Chemicals products and services will be offered within each designated region and market.

"Both the Fuel Specialties and Active Chemicals segments have already been operating on regional models, so the next logical step was to move the whole business onto this regional operating model to build on the success of those segments and to become one business with a simplified and streamlined structure that allows Innospec to focus on driving sales and profitable growth, delivering value to our customers and shareholders," said Mr. Jennings.

PERFUMERS PRAISE INNOSPEC FRAGRANCES

A group of fragrance industry experts has given an enthusiastic review to three of Innospec's products-Cypriol, Vetimoss, and Verdirosa. The occasion was the British Society of Perfumery symposium, held last month at Towcester. Lester Bowman, head of Innospec Active Chemicals for Europe, the Middle East and Africa gave a talk to the group, and Peter Whipps, a freelance perfume expert presented the three fragrances.

Cypriol, which has a spicy floral fragrance, was presented in a linden blossom room spray and peach base, where it confers the rich, natural aroma of real flowers. As well as offering good odour of its own, Cypriol has a substantial floralising effect on any fragrance. Vetimoss, an earthy fragrance used as an extender for clean, woody scents, was presented in a men's Fougère shower gel and Outdoors detergent powder. Verdirosa, newly launched by Innospec, has an intense green rose aroma, and was presented in a scented candle. It also has applications in air fresheners, laundry products, and toilet soap.

The usually subdued group was very enthusiastic about the products on show, particularly Verdirosa, said Dr Mike Veal, at Innospec Active Chemicals. "Innospec is generating a lot of excitement in the industry, with 5 new fragrance products including Verdirosa introduced during the past year," Veal said.

VISCOWAX™ OPE GETS BROAD APPROVAL FOR FOOD CONTACT

Innospec Active Chemicals is close to receiving approval from the European Food Safety Association (EFSA) for the use of its Viscowax™ oxidized polyethylene (OPE) waxes in all food-contact plastic products. Applications of Viscowax™ OPE waxes include use as additives in plastics processing, and they are already approved for certain food-contact uses in several countries. The pending authorisation from EFSA will allow Innospec's OPE waxes to be used in all plastic products intended for food contact throughout the EU.

The development follows submission to EFSA of a favourable toxicity screening study for OPE waxes organised out by the European Wax Federation's Synthetic Waxes Task Force. Data from that study "was the last missing information" to obtain broad approval for OPE waxes in food-contact plastic applications in the EU, said Winfried Hommel, Viscowax™ Application Engineer at Innospec Leuna

"We have just substantially increased our capacity for producing Viscowax™ OPE products, so we are very pleased with this important development," said Samantha Gardner, Marketing Manager for Innospec Active Chemicals. "The Viscowax™ range already has a broad range of applications, and this approval will give us the opportunity to further expand into fast-growing markets targeting the food industry."

MAY 2008 - INNOSPEC IS A HIT AT IN-COSMETICS

Innospec's Active Chemicals business made a big impact with current and prospective customers alike at In-Cosmetics, the leading global business event for the personal care ingredients industry, which took place last month in Amsterdam. Personal Care is one of five core markets for Active Chemicals, and the event gave Innospec the chance to underscore its commitment to the sector and its positive growth prospects, said Samantha Gardner, Marketing Manager for Active Chemicals.

It was the first time ever the company showed off its new product locator guide, featuring the more than 100 offerings in the Active Chemicals portfolio, including emollients, humectants, solvents, solubilizers, dispersants, biodegradable chelants, "mini sponges", rheology modifiers and fragrances for the cosmetics and personal care markets. The locator helps customers by providing more information and support for their formulation needs.

Customers were also excited to learn about the start-up of European production of FINSOLV® benzoate ester emollients at a new multipurpose specialty chemicals plant at Ellesmere Port. FINSOLV® esters are state-of-the art emollients that have low toxicity, impart a talc-like feel and are excellent solvents for many cosmetic actives. Visitors to Innospec's stand got the chance to sample a luxurious velvet body cream featuring the unique after-feel of FINSOLV® TN emollients.

MAY 2008 - REGULATORY TRENDS BOOST INNOSPEC CHELANT

Regulatory pressures in the chelants market are providing a boost for green alternatives, including Innospec's Enviomet™ EDDS range, according to Nick Dixon, Product and Technical Manager for Innospec Active Chemicals. Dixon told an international meeting of experts in Florida last month that traditional chelants such as EDTA and DTPA are under regulatory threat because of their poor biodegradability, prompting a switch to greener, biodegradable alternatives.

Chelants are used to bind metal ions and prevent undesirable reactions in such applications as cleaning, pulp and paper, and personal care products. Roughly 80% of the global chelant market faces regulatory issues, particularly in Europe and the US, Dixon told delegates at the SODEOPEC (Soaps, Detergents, Oleochemicals and Personal Care) conference in Orlando, organized by the American Oil Chemists Society. "Pressures on non-biodegradable chelants are increasing, and we believe this will soon force a reduction in their usage," Dixon said.

Enviomet™ is the best alternative to EDTA, thanks to its performance benefits, non-toxicity; and, most importantly, its biodegradability, Dixon said. Enviomet™ was the winner of the UK Green Chemical Technology Award 2003 from the Crystal Faraday Partnership. "By bringing these kinds of solutions to the market, we believe this can substantially increase the market share of green chelants by 2016," he said.

APRIL 2008 - INNOSPEC'S 2008 PROXY STATEMENT AND 2007 ANNUAL REPORT NOW AVAILABLE

Innospec's 2008 Proxy Statement regarding our Annual Meeting of Stockholders to be held in New York on May 6, 2008 and our Annual Report on Form 10-K are available by clicking on the following links:

• Proxy Statement
• Form 10-K

APRIL 2008 - INNOSPEC RAISES DIVIDEND, BOOSTS SHARE BUYBACK

Innospec's Board of Directors has authorized an 11% increase in the company's semiannual dividend, to $0.05/share, and a further repurchase of shares, up to a total value of $8 million. "The moves reflect the company's excellent financial performance in 2007, and its commitment to use strong cash flow to build shareholder value", said Paul Jennings, Innospec's President and CEO.

The company had "a highly successful and profitable year" in 2007, Jennings said. Overall revenues were $602.4 million, up 13% from 2006, and net income more than doubled, to $29.5 million ($1.19/diluted share). Net cash flow provided by operating activities was $47.9 million, a 32% increase on the previous year. The company repurchased a total of 752,000 shares for the full year, for a total of $18.3 million.

Innospec stock continues to be attractive to investors due to its strong generation of cash flow, and the company intends to keep the possibility of further buybacks under review during the year, Jennings said. The company is also continuing to expand its shareholder base-it recently secured its first UK-based institutional investor.

APRIL 2008 - WIDNES SITE GETS MAJOR SAFETY HONOR

Innospec's Widnes, UK facility has achieved one of the country's top safety, health and environmental performance honours--a Gold Award from the Royal Society for the Prevention of Accidents (RoSPA). It is the second consecutive year that Widnes will receive the award, which recognizes sustained performance in reducing accidents and ill-health at work and the ability of the site's management system to bring about continual improvement.

"Everyone on site has contributed to the winning of this award by participating in health and safety initiatives and contributing to the continual improvement of safe working practices across all areas of our operations," said Jim Williams, Site and Operations Director for Widnes. "It again demonstrates the commitment of Innospec Widnes staff and contractors in ensuring that we are safe at work and confirming to the local community that we are good neighbours."

Several other Innospec sites have recently been recognised for their safety achievements. The company's Ellesmere Port, UK site recently received a RoSPA Gold Medal, which is awarded after achieving Gold Awards for five consecutive years. Innospec has now operated for over 4 million man hours without a reportable lost-time accident, including 1 million man hours at Ellesmere Port.

MARCH 2008 - ELLESMERE PORT ACHIEVES MAJOR SAFETY MILESTONE

Innospec's Ellesmere Port site has just passed a major safety milestone-1 million man hours without a reportable lost-time accident. It is the first site to achieve the 1 million hours target, and will be presented with a Gold Award certificate from Innospec's Performance Delivery Executive-the company's top safety honour.

Ellesmere Port has already been recognized by the Royal Society for the Prevention of Accidents (RoSPA) for its safety achievements. It was one of only nine U.K. chemical sites to receive a 2007 RoSPA Gold Medal, one of the UK's most prestigious safety, health and environmental performance awards. It qualified by winning RoSPA Gold Certificates for five consecutive years, and by demonstrating continuous improvements and progress each year.

The site also recently achieved ISO 14001 accreditation. "Gaining this International Standard is a fantastic achievement and is the result of many months of hard work by all staff," said Ellesmere Port site director Adin Clarke. "It has already led to a greater awareness amongst staff, increased recycling, reduction in energy and water consumption and waste generation."

MARCH 2008 - INNOSPEC MAKES A SPLASH AT IN-COSMETICS

Innospec's Active Chemicals business will be making a big splash at In-Cosmetics, the leading global business event for the personal care ingredients industry, which takes place next month in Amsterdam.

The biggest news is the start-up of European production of FINSOLV® benzoate ester emollients at a new multipurpose specialty chemicals plant at Ellesmere Port. FINSOLV® esters are state-of-the art emollients that have low toxicity, impart a talc-like feel and are excellent solvents for many cosmetic "actives", including sunscreens, anti-perspirant salts and fragrances.

Previously, FINSOLV® was manufactured only at Innospec's plant at Spencer, NC. The new plant will save freight costs and shorten the supply chain, enabling the company to more efficiently serve personal care products customers outside the U.S., said Paul Jennings, Innospec's President and CEO.

Also being spotlighted are Innospec's CONDICARE® conditioners for hair and skin applications; PUREACT SM2030®, an ultra-mild surfactant ideally suited for use in personal care formulations including baby products, shower gels and body washes; NATRLQUEST E30®, a readily biodegradable chelant; and ACTIVSOFT MS100®, a unique crosslinked, superabsorbing polymer that instantly swells in the presence of water to form transparent beads that have the appearance of "mini-sponges" in a formulation.

MARCH 2008 - 'A HIGHLY SUCCESSFUL YEAR' IN 2007

Innospec recently reported strong sales and profits growth for fourth-quarter and full-year 2007. Total revenues for the fourth quarter were $172.7 million, a 19% increase from the same period last year, and net income was $11.1 million ($0.45 per diluted share), compared with a net loss of $(0.7) million in fourth-quarter 2006.

The fourth-quarter results primarily reflect a good performance in Fuel Specialties, said Paul Jennings, Innospec's President and CEO. "Octane Additives also rebounded impressively from its third-quarter performance, due to an expected shift in the timing of its shipments. While Active Chemicals' results for the quarter were somewhat disappointing, our strategic repositioning of this division late in the year has positioned it well to deliver improved results in 2008."

Overall revenues for 2007 were $602.4 million, up 13% from the previous year, and net income more than doubled, to $29.5 million. "Overall, 2007 was a highly successful and profitable year for Innospec," Jennings said. "We drove substantial sales growth, maintained our margins at attractive levels despite significant cost pressures in our core businesses and significantly increased our investments in capital spending and R&D. We expect Fuel Specialties to have another solid year in 2008, and Active Chemicals should begin building some momentum."

FEBRUARY 2008 - INNOSPEC JOINS NASDAQ's 'BLUE CHIP' LIST

Innospec stock recently got an important upgrade, when it was transferred from The NASDAQ Global Market to The NASDAQ Global Select Market. The Global Select Market has highest listing standards of any market in the world based on financial and liquidity requirements, and represents the NASDAQ exchange's listing of "blue-chip" stocks.

"Qualifying to list IOSP shares on The NASDAQ Global Select Market sends a powerful message to our investors and potential investors," said Paul Jennings, Innospec's President and CEO. "It reflects, in part, the more than doubling in Innospec's share price and market capitalization over the last two years, which in turn is due to the excellent financial performance of our ongoing growth businesses over that timeframe."

Companies qualify for the Global Select Market based on measures including market value, liquidity and earnings. Inclusion in The Global Select Market "is a mark of achievement and stature for qualified companies," NASDAQ says. Global Select Market companies also receive an enhanced package of services from NASDAQ covering communications, visibility, management and board support.

FEBRUARY 2008 - INNOSPEC SIGNS MAJOR BIODIESEL DEAL

A new range of Innospec additives are helping to improve the performance of the world's most recognized brand of biodiesel. World Energy Alternatives, a leading producer of renewable fuels and the biggest U.S. biodiesel supplier, has announced a three-year agreement to use Innospec's BIOSTABLE™ stabilizers in its biodiesel products worldwide.

Biodiesel is a clean-burning alternative fuel made from renewable resources such as soybeans. It is produced to strict industry and government specifications, and the BIOSTABLE™ additives will ensure that World Energy's biodiesel products meet several key stability performance criteria.

The companies will also work together to co-develop other additives, said Patrick Williams, President of Innospec Fuel Specialties. "We can make a significant contribution to the growth of biodiesel by developing performance fuel additives such as cold-flow improvers and pour-point depressants to broaden its international appeal," Williams said.

"By partnering with a technology innovator such as Innospec, we are able to continually advance the quality of our products while expanding their application throughout our global market," said Gene Gebolys, President and CEO of World Energy.

FEBRUARY 2008 - INNOSPEC LENDS SUPPORT TO NATIONALSKILLS ACADEMY

Innospec is among a group of leading UK process industry employers lending support to the National Skills Academy Process Industries (NSAPI), which was officially launched late last month by Skills Minister David Lammy. In all, the companies have contributed more than $2 million to the Academy for the purpose of developing an improved "gold standard" training benchmark and infrastructure within the UK's process industries.

Growth in the process industries is currently constrained by a lack of suitably qualified employees. The new academy is designed to tackle sector-specific skills shortages by standardising training across the industry and uniting a team of experts and employers to share best practices and create world-class learning environments. It is anticipated that at least 16,000 learners will undertake training via the skills academy over the next five years.

The academy, based at Teesside, will act as a "hub" for a network of regional training "spokes." Those are expected to include TTE Training Ltd. at Ellesmere Port, which was originally set up as a joint venture of Innospec, ICI, and Shell with the aim of providing specialist training at a purpose-built site.

JANUARY 2008 - INNOSPEC RECEIVES PRESTIGIOUS SAFETY AWARD

Innospec's Ellesmere Port, UK facility was recently honoured with one of the UK's most prestigious safety, health and environmental performance awards - a Gold Medal from the Royal Society for the Prevention of Accidents (RoSPA). Innospec was one of only nine chemical companies in the UK to receive a Gold Medal.

Innospec began participating in the RoSPA program in 1998, when the site faced a number of serious safety and environmental challenges. "The dramatic improvement in performance over the last 10 years is a great example of what we can achieve when everyone at Innospec is moving forward in one direction," said Paul Jennings, Innospec's President and CEO. "Winning this Gold Medal from RoSPA sends a clear message about how important safety and training is to Innospec."

Several other Innospec sites have recently been recognised for making significant safety improvements. The company's Widnes, UK site recently achieved its first RoSPA certificate, while in the US, the North Carolina Department of Labor honoured Innospec's facilities at High Point and Spencer for outstanding on-the-job safety achievements during 2006 at its biannual safety awards banquet.

JANUARY 2008 - INNOSPEC WEBSITE

Innospec has dramatically enhanced its online presence with a completely redesigned website that went live on January 7. The site is designed to reflect the company's new business structure, and features better navigation tools, greater functionality and improved search facilities, making it easier for customers, investors, the media and other stakeholders to use.

"The redesign marks another important step forward for Innospec," said Paul Jennings, the company's President and CEO. "Our business today is focused on global markets and we serve our customers through regional teams that address their specific needs. Our new site takes this theme and makes it easier for people to navigate around our business to find the information they require."

Customers can search by market, region, product or subject. As before, certain material will only be made available to customers with privileged access via their secure password. The investor community gets a wider range of material for tracking financial progress, including a live share price during market trading and stock performance charts. Meanwhile, a new Media Centre section gives journalists access to press releases, company brochures, logos and photographs of key officers and directors.

JANUARY 2008 - TWO NEW DIRECTORS JOIN INNOSPEC'S BOARD

Innospec welcomed two new members to its Board of Directors at the beginning of January -Peter Fearn and Joachim Roeser. Both have extensive experience in the chemical industry and managing international businesses, said Innospec chairman Bob Bew. "We believe they will both bring valuable new perspectives to the Board's deliberations," Bew said.

Mr. Fearn, 54, is Executive Chairman of VetXX A/S, a Danish animal health care company, and President of Dipharma Srl, an Italian chemical company that supplies the pharma industry. He also owns SKMP Ltd., a consulting firm specialising in mergers and acquisitions. He will join the Innospec board's Compensation Committee.

Mr. Roeser, 53, is CEO of Amber Chemicals, a specialty silicone producer owned by Caledonia Investments. He is a German and has lived and worked in Belgium, France, Germany, and the UK. He will become a member of the Innospec board's Nominating and Governance Committee.

Charles M. Hale and Samuel A. Haubold recently announced their intention to retire from the Innospec Board after the next annual shareholders meeting on May 6, 2008. Following these changes, the size of Innospec's Board will remain at seven.