INNOSPEC REPORTS THIRD QUARTER FINANCIAL RESULTS

GAAP Loss of $(0.71) per share vs. Diluted EPS of $1.20; Excluding Special Items, Diluted EPS $0.93 vs. $0.78

Sales up 16%; Balance sheet and cash flow strong; NewMarket complaint settled

Littleton, CO – November 1, 2011 – Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the third quarter ended September 30, 2011.

Total net sales for the quarter were $202.1 million, a 16% increase from $174.0 million in the corresponding period last year, with continued strong performance from the Company’s Fuel Specialties and Active Chemicals segments. Reported net loss was $(16.8) million, or $(0.71) per diluted share, compared to net income of $30.0 million, or $1.20 per diluted share, reported a year ago. EBITDA (earnings before interest, taxes, depreciation, amortization and impairment) for the quarter was a loss of $(20.4) million, versus $36.7 million in the year-ago period.

Reported results for the quarter were heavily impacted by several special items totaling $39.5 million, or $1.61 per diluted share, including an after-tax $29.3 million charge relating to the settlement of litigation with NewMarket Corporation, and other items which are summarized in the table below. Excluding these items, diluted earnings per share for the third quarter of 2011 were $0.93, a 19% increase from $0.78 recorded a year ago.

EBITDA and net income excluding special items, and related per-share amounts, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below.

For the first nine months of 2011, total net sales of $573.9 million increased 13% from $505.9 million in the corresponding period last year. Net income for the nine-month period was $29.3 million, or $1.19 per diluted share, compared with $49.4 million, or $1.98 per diluted share, a year ago. Excluding special items, diluted earnings per share for the first nine months of 2011 were $2.52, a 19% increase from $2.11 a year ago. EBITDA for the first nine months of 2011 was $47.3 million, compared with $69.9 million a year ago.

Patrick Williams, President and Chief Executive Officer, noted, “Clearly, our results have been impacted by both cash and non-cash extraordinary events which cloud the fact that our continued strong operating results and cost-management programs have helped us weather the storm and end the period in a strong fiscal position. Innospec is a resilient company, and we are both cautiously optimistic, and confident of our positive momentum moving forward.

“We see continued potential in the BRIC countries, which is why we have established sales and marketing operations in both Russia and Brazil during the quarter. Similarly, there is an obvious need for stronger service and technological application expertise in the oilfield chemicals industry, as this is a natural area of expansion. We continue to look carefully at strategic acquisitions and other growth options which are supported by our strong balance sheet.

“We are pleased that both of our growth businesses continue to perform very well, advancing at above-market rates and establishing very strong leadership positions in their respective market segments. We continue to invest in the organic growth of these businesses, which have significant potential to contribute further to shareholder value.”

Net sales in Fuel Specialties for the third quarter were $136.1 million, up 19% from $113.9 million in last year’s third quarter. By region, sales increased 6% in the Americas, 35% in Europe, Middle East and Africa (EMEA) and 14% in Asia Pacific. The segment’s gross margin was 28.0% for the quarter, compared with 32.5% a year ago. Operating income for the segment in the quarter was $19.9 million, compared with $18.7 million a year ago. Gross profit margins of 28.0% are sequentially improved from 27.4% in the second quarter, with raw material pricing generally stabilized, continued margin improvement in the near term is possible.

In Active Chemicals, net sales were $43.9 million for the quarter, a 15% increase from $38.2 million a year ago. By region, sales rose 4% in the Americas, 24% in EMEA and 20% in Asia-Pacific. Active Chemicals’ gross margin was 21.9% for the quarter, up from 21.5% a year ago. The segment’s operating income was $5.0 million, up from $4.3 million in last year’s third quarter. While Active Chemicals has been a consistent and solid performer for Innospec, it is a consumer-driven market, for the most part, and expectations must be tempered by the continued worldwide economic difficulties.

Octane Additives’ net sales for the third quarter were $22.1 million, up slightly from $21.9 million a year ago. The segment’s gross margin was 45.2%, up from 42.9% a year ago. The segment recorded a loss for the quarter of $(38.1) million, which included a $45.0 million pre-tax charge, and $1.5 million associated legal and professional expenses, related to the settlement of the company’s litigation with NewMarket Corporation. Details of this action have been previously disclosed. The civil complaint settlement agreement called for a payment of $25.0 million in cash and $5.0 million in shares, which were made in the third quarter, with the remaining $15.0 million to be paid evenly in annual installments over the next three years.

Corporate costs for the quarter were $6.4 million, compared with $7.9 million a year ago. The decrease primarily reflects a lower pension charge and share based compensation accruals partially offset by $3.0 million in acquisition-related costs. The effective tax rate for the quarter was 33.3%, reflecting the impact of the civil settlement and adjustment of income tax provisions.

Net cash generated from operations was $9.4 million, primarily due to tight working capital control. As of September 30, 2011, Innospec had $136.9 million in cash and cash equivalents, exceeding its total debt of $90.0 million by $46.9 million. During the quarter, the Company repurchased 594,336 common shares for $15.4 million under its $40.0 million share repurchase program.

The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise EBITDA and net income excluding special items, and related per share amounts. EBITDA is net income per our consolidated financial statements adjusted for the exclusion of charges for interest expense (net), income taxes, depreciation, amortization and impairment of Octane Additives segment goodwill. Net income excluding special items is net income per our consolidated financial statements adjusted for the exclusion of civil complaint settlement, foreign exchange losses/(gains), adjustment of income tax provisions, acquisition-related costs, civil complaint legal and professional expenses and pension charge. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below. The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, management uses these non-GAAP financial measures internally to allocate resources and evaluate the performance of the Company’s operations. While the Company believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly-titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company’s performance relative to other companies in similar industries. Management believes the most directly comparable GAAP financial measure is GAAP net income and has provided a reconciliation of EBITDA and net income excluding special items, and related per share amounts, to GAAP net income herein and in the schedules below.

Innospec Inc. is an international specialty chemicals company with approximately 850 employees in 20 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. Innospec's Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. Innospec's Active Chemicals business provides effective technology-based solutions for our customers’ processes or products focused in the Personal Care; Household, Industrial & Institutional; and Fragrance Ingredients markets. Innospec's Octane Additives business is the world's only producer of tetra ethyl lead.

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like “expects”, “anticipates”, “may”, “believes” or similar words or expressions), for example, which relate to operating performance, events or developments that we expect or anticipate will or may occur in the future (including, without limitation, any of the Company’s guidance in respect of sales, gross margins, pension liabilities and charges, net income, growth potential and other measures of financial performance). Although forward-looking statements are believed by management to be reasonable when made, caution should be exercised not to place undue reliance on such statements because they are subject to certain risks, uncertainties and assumptions, including in respect of the general business environment, regulatory actions or changes. If the risks or uncertainties materialize or assumptions prove incorrect or change, our actual performance or results may differ materially from those expressed or implied by such forward-looking statements and assumptions. Additional information regarding risks, uncertainties and assumptions relating to the Company and affecting our business operations and prospects are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, and other reports filed with the U.S. Securities and Exchange Commission. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, including specifically those under the heading "Risk Factors”. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Brian Watt Innospec Inc. +44-151-356-6241

Brian.Watt@innospecinc.com

Robert D. Ferris RF|Binder Partners +1-212-994-7505

Robert.Ferris@RFBinder.com

Amortization of deferred finance costs of $0.5 million (2010 - $1.1 million) are included in depreciation and amortization in the cash flow statement but in interest expense in the income statement.