July 20, 2007

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, 2006.  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. 

With 19 locations in 10
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

3

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™ - an 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

-Paints

-   Wood composites

-   Soaps/cosmetics

Tolling Processing services

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Historical Financial Performance

 

$ in millions, except per share data
	Q2 2007	Q2 2006	Q1 2007	FY 2006	FY 2005
Revenues	$94.7	$79.5	$86.3	$324.3	$296.6
Gross Profit	17.3	15.4	14.5	63.1	53.5
Gross Margin	18.3%	19.3%	16.8%	19.5%	18.0%
Operating Income	6.9	4.9	4.3	21.3	8.2
Income from Continuing Operations	5.5	3.0	2.6	13.5	5.0
EPS-Diluted from Continuing Operations	$0.20	$0.09	$0.09	$0.43	$0.11
Volumes (Metric Tons)	82,000	80,000	76,000	321,000	294,000
Cash Flow from Continuing Operating Activities	$6.6	$2.7	$5.5	$13.5	4.8
Cash Flow from Investing Activities	(1.5)	(2.7)	(1.7)	(8.1)	(4.1)
	$            5.1	$            -	$            3.8	$            5.4	$            0.7

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Historical Financial Performance- Cont’d
$ in millions
            

            
March 31, 2007
            
September 30, 2006
            
September 30, 2005
            
            
 Cash
            
$                     1.6
            
$                         17.4
            
$                           3.2
            
            
 Total Debt
            
51.2
            
43.5
            
33.6
            
            
 Working Capital, minus cash
            
43.8
            
40.1
            
38.1
            
            
 Equity
            
76.4
            
91.7
            
77.1
            
            
 Debt-to-capitalization
            
40.1%
            
32.2%
            
30.4%
            
            

            
            
            
            
          

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Operating Margin Breakdown 2004-March 2007

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Operating Income, Assets, ROA% by Business Segment

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Value Creation Opportunities - FY 2007 and Beyond 

■ Cultivate global customer relationships

■ FY 2007 expansion into the Middle East (Dubai)

■ Capitalize on current market strength in Australia

■ FY 2007 expansion of compounding capacity in Malaysia

■ Aggressively grow oilfield service product sales

■ Further develop strategic raw material supply relationships

■ Profitably grow our business in Brazil

■ Continue overall growth and take advantage of operating leverage (i.e. cost control)

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