September 2006

Investor update

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Certain matters discussed in this presentation are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.  In particular, the Company’s statements regarding trends in the marketplace and potential future results are examples of such forward-looking statements.  The forward-looking statements include risks and uncertainties, including, but not limited to, restrictions imposed by the Company’s outstanding indebtedness, changes in the cost and availability of polymers, demand for the Company's services and products, business cycles and other industry conditions, the Company's ability to manage inventory and to develop technology and proprietary know-how,  the Company’s lack of asset diversification, its ability to attract and retain key personnel, litigation risks, international risks, operational risks, and other factors detailed in the Company's form 10-K for the fiscal year ended September 30, 2005.  The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements.  The forward-looking statements are made only as of the date of this presentation, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. 

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With 18 locations in 9 countries, ICO produces custom polymer powders and remains an industry
leader in size reduction, compounding and other tolling services for plastic and non-plastic materials. ICO's Bayshore Industrial subsidiary produces
specialty compounds, concentrates and additives primarily for the plastic film industry.

About the company

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Additive

producer:
CIBA, Teknor 

Oil & Gas

Exploration
and
Production  

ethane,

propane, naphtha  

Polymer

producers: PE, PP,

 PS, PVC

End product

converters:  tank
producers,
film manufacturers,
toy makers,
    molders 

Ethylene,

Propylene

Styrene,

Vinyl,

Chloride

Refinery

Processes

ASSETS UTILIZED

Processors:

ICO Polymers/

Bayshore
Industrial

Drilling rigs,

production
equipment,

etc.  

Additives

Polymerization

Reactors

Compounding/

grinding

Injection molding, blow

molding, rotational
molding  

Monomer

Production

Post

Reactor

Processing

ICO’s “fit” in the value chain

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Compounds, including concentrates produced by Bayshore Industrial

Products & Services

Custom Powders for Rotational molding

■ Proprietary ICORENE^® and COTENE^® product lines sold across the globe

■ Business built on value-adds, such as:

                 - Grades tailored to client, driven by application

                 - R&D and technical sales support worldwide

                 - Partnering with key customers 

Other Polymer Markets

■  Proprietary ICOTEX^® and  ICOFLO^®  lines-for textiles and carrier powders

     for masterbatch customers

■  ECORENE^® environmentally friendly family of thermoplastics with a unique combination of properties well-suited for a variety of markets

■  Regional expertise in other areas such as the oilfield service and metal coating industries  

■ Products primarily for the plastic film industry

■ Products produced include:

                - Masterbatches
                - Concentrates
                - Specialty compounds

 .

■  Markets served

                - North America and selected export markets

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■  Ambient grinding - high-volume, low value-add service

■  Cryogenic grinding - greater value-add and requiring

    more technical expertise to serve the market 

■  Jet milling - greater value-add and requiring more

    technical expertise

■ Other related services:

-   Compounding

-

Blending

-

Packaging

-

Warehousing

Products & Services

■  Wide range of tolling opportunities

    globally, including:

.

          -   Rotomolding

          -   Oilfield services

          -   Textiles

          -   Metal coatings

          -   Agricultural

          -   Wood composites

          -   Soaps/cosmetics

Tolling Processing services

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Historical Financial Performance

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Operating margin breakdown 2004-2006

8

Operating income, assets, ROA% by business segment

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Value Creation Opportunities – FY 2007 and beyond 

■ Cultivate global customer relationships

■ Aggressively grow oilfield service product sales

■ FY 2007 expansion into the Middle East

■ Capacity expansion of Bayshore Industrial

■ FY 2007 expansion in Malaysia

■Continue overall growth and taking advantage of

   operating leverage

■ Further develop strategic raw material supply

   relationships

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