Exhibit 99.1

ICO, Inc. Announces Financial Results for

Second Quarter Ended March 31, 2008

HOUSTON, TEXAS, May 7, 2008 – ICO, Inc. (NASDAQ: ICOC), global producer of custom polymer powders and plastic film concentrates, today announced its results for the quarter ended March 31, 2008.

Second Quarter Highlights

· Revenues of $112.1 million, an increase of $17.4 million or 18% from the prior year

· Volume growth of 2% compared to the second quarter of fiscal 2007

· Operating income of $8.6 million, up 26% year-over-year

· Net income per share of $.18 fully diluted

· Company announces relocation of New Jersey plant to Pennsylvania

Second Quarter 2008 vs. Second Quarter 2007

Revenues for the three months ended March 31, 2008 were $112.1 million, an increase of $17.4 million or 18% compared to the same quarter of the previous year.  The translation effect of stronger foreign currencies caused $8.5 million of the increase, while higher average selling prices and changes in product mix caused $4.6 million of the increase.  A 2% increase in volumes sold caused $4.3 million of the growth.

As a result of the increase in revenues, gross profit increased $1.9 million or 11% to $19.3 million.  The second quarter of fiscal year 2008 includes in impairment, restructuring and other costs (income) a net gain of $1.6 million as a result of an estimated insurance recovery related to the July 2007 fire that occurred in the Company’s New Jersey facility.  Operating income increased $1.8 million or 26% to $8.6 million.  Income tax expense increased $1.9 million due to the increase in pre tax income as well as a reversal of a valuation allowance in the prior year quarter of $1.4 million related to previously reserved deferred tax assets.  As a result, income from continuing operations decreased $0.5 million or 10% to $5.0 million, or $.18 per fully diluted share.  During the second quarter of fiscal year 2007, an after tax gain of $1.5 million was recognized in discontinued operations.  Consequently, net income decreased $2.0 million or 29% to $5.0 million.

Second Quarter 2008 vs. First Quarter 2008

Comparing the sequential quarterly results, revenues increased $1.3 million or 1%.  Volumes sold increased 2% which led to an increase in revenues of $6.5 million, which was partially offset by a change in product mix which reduced revenues by $6.1 million.  The translation effect of stronger foreign currencies increased revenues by $0.9 million.  Operating income increased $2.2 million or 33% in part due to the estimated insurance recovery during the

quarter as our gross margins remained flat.  Net income increased $1.5 million or 42% as a result of the improvement in operating income.

“We just completed a quarter in which our operating income improved 26% year-over-year,” stated A. John Knapp, Jr., the Company’s President and CEO.  “Our European region performed very well for the Company by improving operating income 40%.  We also benefited in the quarter from the insurance recovery, of which a considerable portion related to compensation for business interruption expenses and lost profits as a result of the fire that occurred at our New Jersey facility in 2007.   During the last quarter, in North America our industry encountered economic headwinds and uncertainty regarding future resin price trends.  ICO is not immune to these factors.  However, our product diversity and our geographic diversity, including our exposure to growing foreign markets, give us confidence in our long-term business.”

Relocation of New Jersey Facility to Pennsylvania

The Company is pleased to announce that the New Jersey facility will be relocated to Allentown, Pennsylvania, approximately 35 miles west of its current location.  The Company expects to begin production in the new facility within the next 120 days and expects to have all production moved from New Jersey to Pennsylvania within the next twelve months.  The new facility in Pennsylvania will be state-of-the-art for the industry and will provide an upgrade to our capacity as well as increased operating efficiencies.

Balance Sheet and Liquidity

For the first six months of fiscal year 2008, shareholders’ equity increased $16.9 million or 19%, primarily as a result of year-to-date net earnings and the effect of stronger foreign currencies compared to the U.S. Dollar.  Our available borrowing capacity at March 31, 2008 was $57.0 million, an increase from December by $4.7 million.  In April 2008, we entered into an interest rate swap on our existing $11.7 million term loan that matures in 2011, essentially locking in our interest rate at 4.32%, subject to changes in the Company’s leverage ratio.  Additionally, in May 2008, we executed an amendment to our existing domestic credit facility extending the maturity of the credit facility by one year to October 2012, and increasing our borrowing capacity by $5.0 million.  During the second quarter, we generated cash flow from operating activities of $1.8 million.  Our capital expenditures were $4.6 million during the quarter.  Approximately $2.7 million of the $4.6 million of capital expenditures related to our facility relocation from New Jersey to Pennsylvania.

Conference Call on the Web

A live Internet broadcast of ICO, Inc.’s conference call regarding fiscal 2008 second quarter results can be accessed at 10:00 a.m. Central Standard Time on Thursday, May 8, 2008 athttp://www.videonewswire.com/event.asp?id=47839, where the webcast replay will be accessible for ninety days.  The webcast replay will also be accessible on the Company’s website at www.icopolymers.com for a period of twelve months.  (Minimum requirements to listen to the broadcast are:  The Windows Media Player software, downloadable free from

http://www.microsoft.com/windows/windowsmedia/player/download/download.aspx and at least a 28.8Kbps connection to the Internet.)

Investors are invited to participate in the conference by dialing 847-413-3238, passcode 21304085.  A replay of the conference call will be available by dialing 630-652-3044, passcode 21304085.

About ICO, Inc.

With 19 locations in 10 countries, ICO produces custom polymer powders for rotational molding and other polymer related businesses, such as the textile, metal coating and masterbatch markets. ICO 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.  Additional information about ICO, Inc. can be found on the Company’s website at www.icopolymers.com.   Contact:  CFO – Brad Leuschner at 713-351-4100.

This press release contains forward-looking statements, which are not statements of historical facts and involve certain risks, uncertainties and assumptions. These include, but are not limited to, restrictions imposed by the Company’s outstanding indebtedness, changes in the cost and availability of resins (polymers) and other raw materials, demand for the Company's services and products, business cycles and other industry conditions, international risks, operational risks, currency translation risks, the Company’s lack of asset diversification, the Company’s ability to manage global inventory, develop technology and proprietary know-how, and attract and retain key personnel, as well as other factors detailed in the Company's form 10-K for the fiscal year ended September 30, 2007 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

ICO, Inc.
Consolidated Statement of Operations

(Unaudited and in thousands, except per share data and percentages)

	Three Months Ended									Six Months Ended
	March 31,						December 31,			March 31,
	2008			2007			2007			2008			2007
Product Sales	$	102,120		$	84,893		$	101,188		$	203,308		$	162,480
Toll Services		10,006			9,826			9,677			19,683			18,500
Total Revenues		112,126			94,719			110,865			222,991			180,980
Cost of sales and services (exclusive of depreciation shown
separately below)		92,838			77,371			91,773			184,611			149,140
Gross Profit (1)		19,288			17,348			19,092			38,380			31,840
Selling, general and administrative expense		10,387			9,274			10,603			20,990			17,713
Depreciation and amortization		1,853			1,855			1,795			3,648			3,611
Impairment, restructuring and other costs (income)		(1,598	)		(654	)		198			(1,400	)		(654	)
Operating income		8,646			6,873			6,496			15,142			11,170
Other income (expense):
Interest expense, net		(1,096	)		(838	)		(1,023	)		(2,119	)		(1,502	)
Other income (expense)		(68	)		88			(133	)		(201	)		(167	)
Income from continuing operations before income taxes		7,482			6,123			5,340			12,822			9,501
Provision for income taxes		2,489			601			1,814			4,303			1,419
Income from continuing operations		4,993			5,522			3,526			8,519			8,082
Income (loss) from discontinued operations, net of income taxes		-			1,475			(16	)		(16	)		1,439
Net income	$	4,993		$	6,997		$	3,510		$	8,503		$	9,521
Preferred Stock dividends		-			(82	)		(1	)		(1	)		(390	)
Net gain on redemption of Preferred Stock		-			-			-			-			6,023
Net income applicable to Common Stock	$	4,993		$	6,915		$	3,509		$	8,502		$	15,154
Basic income from continuing operations per common share	$	0.18		$	0.21		$	0.13		$	0.31		$	0.53
Basic net income per common share	$	0.18		$	0.27		$	0.13		$	0.31		$	0.59
Diluted income from continuing operations per common share	$	0.18		$	0.20		$	0.13		$	0.30		$	0.29
Diluted net income per common share	$	0.18		$	0.26		$	0.13		$	0.30		$	0.34
Basic weighted average shares outstanding		27,263,000			25,907,000			26,914,000			27,088,000			25,874,000
Diluted weighted average shares outstanding		27,949,000			27,329,000			27,873,000			27,978,000			27,508,000
Gross Margin (2)		17.2	%		18.3	%		17.2	%		17.2	%		17.6	%
(1) Calculated as Total Revenues minus Cost of Sales and Services, exclusive of Depreciation Expense.
(2) Calculated as Gross Profit divided by Total Revenues.

ICO, Inc.
Consolidated Balance Sheet
(Unaudited and in thousands, except share data and ratios)
	March 31,			September 30,
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	3,403		$	8,561
Trade receivables		86,982			95,142
Inventories		74,934			60,420
Deferred income taxes		1,674			1,778
Prepaid and other current assets		9,065			9,924
Total current assets		176,058			175,825
Property, plant and equipment, net		62,838			57,396
Goodwill		9,414			9,228
Other assets		3,501			3,768
Total assets	$	251,811		$	246,217
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings under credit facilities	$	26,421		$	16,133
Current portion of long-term debt		16,137			11,611
Accounts payable		47,057			66,906
Accrued salaries and wages		6,265			7,313
Other current liabilities		14,011			16,004
Total current liabilities		109,891			117,967
Long-term debt, net of current portion		25,931			29,605
Deferred income taxes		4,750			4,820
Other long-term liabilities		3,326			2,783
Total liabilities		143,898			155,175
Commitments and contingencies		-			-
Stockholders' equity:
Convertible exchangeable preferred stock		-			2
Undesignated preferred stock		-			-
Common stock		54,159			47,659
Additional paid-in capital		71,957			74,920
Accumulated other comprehensive income		10,249			5,416
Accumulated deficit		(28,452	)		(36,955	)
Total stockholders' equity		107,913			91,042
Total liabilities and stockholders' equity	$	251,811		$	246,217
OTHER BALANCE SHEET DATA
Working capital	$	66,167		$	57,858
Current ratio		1.6			1.5
Total debt	$	68,489		$	57,349
Debt-to-capitalization		38.8	%		38.6	%

ICO, Inc.
Supplemental Segment Information
(Unaudited and in thousands, except percentages)
Revenues
Three Months Ended March 31:	2008		% of Total		2007		% of Total		Change		%
ICO Europe	$	54,181		48%	$	42,114		44%	$	12,067		29%
Bayshore Industrial		20,742		18%		19,901		21%		841		4%
ICO Asia Pacific		19,627		18%		18,483		20%		1,144		6%
ICO Polymers North America		12,559		11%		10,797		11%		1,762		16%
ICO Brazil		5,017		5%		3,424		4%		1,593		47%
Consolidated	$	112,126		100%	$	94,719		100%	$	17,407		18%
Six Months Ended March 31:	2008		% of Total		2007		% of Total		Change		%
ICO Europe	$	100,494		45%	$	76,381		42%	$	24,113		32%
Bayshore Industrial		52,519		24%		43,781		24%		8,738		20%
ICO Asia Pacific		37,572		17%		34,096		19%		3,476		10%
ICO Polymers North America		22,890		10%		20,403		11%		2,487		12%
ICO Brazil		9,516		4%		6,319		4%		3,197		51%
Consolidated	$	222,991		100%	$	180,980		100%	$	42,011		23%

Operating income (loss)
Three Months Ended March 31:	2008			2007			Change
ICO Europe	$	3,520		$	2,508		$	1,012
Bayshore Industrial		2,782			3,023			(241	)
ICO Asia Pacific		761			1,128			(367	)
ICO Polymers North America		2,937			1,752			1,185
ICO Brazil		192			127			65
Total Operations		10,192			8,538			1,654
Unallocated General Corporate Expense		(1,546	)		(1,665	)		119
Consolidated	$	8,646		$	6,873		$	1,773
Six Months Ended March 31:	2008			2007			Change
ICO Europe	$	6,518		$	3,183		$	3,335
Bayshore Industrial		6,710			6,313			397
ICO Asia Pacific		1,623			1,846			(223	)
ICO Polymers North America		3,383			2,760			623
ICO Brazil		329			204			125
Total Operations		18,563			14,306			4,257
Unallocated General Corporate Expense		(3,421	)		(3,136	)		(285	)
Consolidated	$	15,142		$	11,170		$	3,972

Operating income (loss) as a percentage of revenues	Three Months Ended			Six Months Ended
	March 31,			March 31,
	2008	2007	Change	2008	2007	Change
ICO Europe	6%	6%	0%	6%	4%	2%
Bayshore Industrial	13%	15%	(2%)	13%	14%	(1%)
ICO Asia Pacific	4%	6%	(2%)	4%	5%	(1%)
ICO Polymers North America	23%	16%	7%	15%	14%	1%
ICO Brazil	4%	4%	0%	3%	3%	0%
Consolidated	8%	7%	1%	7%	6%	1%

ICO, Inc.
Supplemental Segment Information (cont'd.)
(Unaudited and in thousands, except percentages)
Revenues
	Three Months Ended
	March 31,				December 31,
	2008		% of Total		2007		% of Total		Change			%
ICO Europe	$	54,181		48%	$	46,313		42%	$	7,868			17%
Bayshore Industrial		20,742		18%		31,777		29%		(11,035	)		(35%	)
ICO Asia Pacific		19,627		18%		17,945		16%		1,682			9%
ICO Polymers North America		12,559		11%		10,331		9%		2,228			22%
ICO Brazil		5,017		5%		4,499		4%		518			12%
Consolidated	$	112,126		100%	$	110,865		100%	$	1,261			1%

Operating income (loss)
	Three Months Ended
	March 31,			December 31,
	2008			2007			Change
ICO Europe	$	3,520		$	2,998		$	522
Bayshore Industrial		2,782			3,928			(1,146	)
ICO Asia Pacific		761			862			(101	)
ICO Polymers North America		2,937			446			2,491
ICO Brazil		192			137			55
Total Operations		10,192			8,371			1,821
Unallocated General Corporate Expense		(1,546	)		(1,875	)		329
Consolidated	$	8,646		$	6,496		$	2,150
Operating income (loss) as a percentage of revenues	Three Months Ended
	March 31,			December 31,
	2008			2007			Change
ICO Europe		6%			6%			0%
Bayshore Industrial		13%			12%			1%
ICO Asia Pacific		4%			5%			(1%	)
ICO Polymers North America		23%			4%			19%
ICO Brazil		4%			3%			1%
Consolidated		8%			6%			2%