Innospec Inc. Announces Expansion of Stock Repurchase Program and Dividend Increase

Innospec Inc. (NYSE: IOP) today announced that its Board
of Directors has authorized the acceleration of the Company's stock
repurchase program with the intention of spending up to $15 million
over the next twelve months.
   The timing of purchases and the exact number of stock to be
purchased will depend on market conditions. The buyback program does
not include specific price targets or timetables and may be suspended
at any time.
   The Company intends to immediately enter into a Rule 10b5-1 plan
to facilitate repurchases of its stock under this program as well as
maintaining its strategy of making additional repurchases in the open
market outside of the Rule 10b5-1 plan. The plan will allow the
Company to repurchase up to 300,000 shares of common stock. The plan
will run until April 26, 2006.
   Innospec also announced that its Board of Directors has declared a
final dividend for full year 2005 of $0.08 (eight cents), an increase
of 14% per share from the 2004 final dividend. The dividend is payable
on April 1, 2006 to the holders of record of the common stock of the
corporation on February 17, 2006.
   Paul Jennings, President and Chief Executive Officer of Innospec
Inc. said, "Expanding our buyback program and increasing our dividend
by 14% is an excellent use of Innospec's capital that reflects the
Company's strong cash generation, as well as our confidence in the
Company's growth strategy and commitment to enhancing shareholder
value."

   About Innospec Inc.

   Innospec Inc. is an international specialty chemical company with
almost 1,000 employees in 21 countries. Innospec divides its
operations into three distinct business areas: Fuel Specialties,
Performance Chemicals, and Octane Additives. Together, the three
businesses manufacture and supply a wide range of specialty chemicals
to markets in the Americas, Europe, the Middle East, Africa and
Asia-Pacific. Innospec's Fuel Specialties business specialises in
manufacturing and supplying the fuel additives that help improve fuel
efficiency, boost engine performance and reduce harmful emissions.
Innospec's Performance Chemicals business includes a range of
companies that manufacture performance chemicals used in the
manufacture of such items as personal care products, household
detergents, crop protection chemicals as well as in the plastics,
paper and fungicides and in the metal plating and oil industries.
Innospec's Octane Additives business is the world's only producer of
tetra ethyl lead (TEL). The management team has a clear strategy in
place to ensure the Company maximizes shareholder value from TEL
supply while monitoring and reducing production in line with global
demand.

   FORWARD-LOOKING STATEMENTS

   This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements which address
operating performance, events or developments that we expect or
anticipate will occur in the future. Although such statements are
believed by management to be reasonable when made, caution should be
exercised not to place undue reliance on forward-looking statements,
which are subject to certain risks, uncertainties and assumptions. If
the risks or uncertainties ever materialize or the assumptions prove
incorrect, actual results may differ materially from those expressed
or implied by such forward-looking statements and assumptions. Risks,
assumptions and uncertainties include, without limitation, changes in
the terms of trading with significant customers or gain or loss
thereof, the effects of changing government regulations and economic
and market conditions, competition and changes in demand and business
and legal risks inherent in non-U.S. activities, including political
and economic uncertainty, import and export limitations and market
risks related to changes in interest rates and foreign exchange rates,
government investigations, material fines or other penalties resulting
from the Company's voluntary disclosure to the Office of Foreign
Assets Control of the U.S. Department of the Treasury and other risks,
uncertainties and assumptions identified in the Company's Annual
Report on Form 10-K for the year ended December 31, 2004 and those
identified in the Company's other reports filed with the Securities
and Exchange Commission. 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.