Welcome to the Innospec earnings second quarter 2008 results conference call. (Operator Instructions) At this time I would like to turn the conference over to Kate Davison.

Thanks for joining our second quarter 2008 financial results conference call. Today’s call is being recorded. As you know, last night we reported our second quarter 2008 financial results. The press release is posted on the company’s website, www.InnospecInc.com. An audio webcast of the call and the slide presentation of the results are also now available and will be archived on the website. Before we start, I’d like to remind everybody that certain comments made during this call might be characterized as forward-looking statements under the Private Securities Litigation Reform Act of 1995. Generally speaking, any comments regarding managements’ belief, expectation, target or other predictions of the future are forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the anticipated results implied by the forward-looking statements. These risks and uncertainties are detailed in Innospec’s most recent 10K report as well as other filings we have with the SEC. We refer you to the SEC’s website or our site for these or other documents. In our discussion today, we have also included some non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measures is contained in our earnings release and in the presentation that follows, a copy of which is available on the Innospec website. With us today from Innospec are Paul Jennings, President and Chief Executive Officer, Ian Cleminson, Executive Vice President and Chief Financial Officer and Patrick Williams, Executive Vice President and President of Fuel Specialties. And with that, I turn this over to you, Paul.

Turning to slide four in the presentation, I have a few summary comments before Ian takes us through the numbers in greater detail. Despite the continued decline in our Octane Additive business we achieved positive revenue growth for the quarter with a 3% overall increase. Fuel Specialties, which is now by far our largest business, delivered another solid performance with 10% revenue growth and an improved gross margin. However, we are obviously somewhat disappointed with our bottom line results for the quarter. Diluted earnings per share on a GAAP basis was only $0.03 compared with $0.27 for last years second quarter. The results include the write off of $0.10 per share for advisory and financing costs we had previously accrued in connection with two large potential acquisitions. Ultimately, we feel good about our decision not to pursue these deals, but that decision required that we write off these accrued expenses. In addition, Octane Additives goodwill impairment, a small restructuring charge and foreign exchange losses, partially offset by a small real estate gain, caused a net reduction of another $0.09 in our earnings for the quarter. Ian will give us the full detail on those items in a few minutes. Fundamentally, as I said, it was another good quarter for Fuel Specialties and Octane Additives’ results were broadly in line with our expectations. Active Chemicals suffered through a very challenging quarter mainly due to increased energy and raw material costs as well as a continued shift in its sales mix to lower margin products. However, we believe it has hit bottom in the second quarter and going forward we expect it to benefit from raising prices across all its markets and to begin to benefit from its integration with Fuel Specialties as part of a single, ongoing global Specialty Chemicals business which we announced at the end of the second quarter. While we have adjusted our 2008 guidance ranges for both Active Chemicals and Octane Additives to reflect our second quarter results, we have not changed our expectations for Fuel Specialties and I would emphasize that overall the change in our gross profit expectation for the full year is relatively modest. I’ll have more to say on this later but now I’d like to turn the call over to Ian Cleminson, our Chief Financial Officer.

Turning to slide six, on a consolidated basis, revenues for the quarter increased 3% mainly due to the strong performance in our Fuel Specialties business and an acceleration in sales growth in Active Chemicals which were partly offset by a substantial revenue decline in Octane Additives. The overall gross profit percentage was 28.3%, down 5.5 percentage points from last year’s second quarter. This drop reflects significant margin declines in both Active Chemicals and our Octane Additives business. However, our gross profit percentage improved for the quarter in Fuel Specialties. Total operating income of $6.1 million and EBITDA of $9.9 million were both down significantly from a year ago partly due to the write off of acquisition costs that Paul described which was $3.9 million pre tax, $2.5 million after tax or $0.10 per share. I’ll break other items out in greater detail in a few minutes but altogether they reduced our income by another $0.09 per share. A year ago in the second quarter our results included similar items that had a negative impact of $0.12 per share. If you back all these items out of both years our adjusted EPS was $0.22 compared with $0.39 a year ago, the difference primarily being Active Chemicals and Octane Additives’ lower performance. Fundamentally, as Paul noted, we had another good quarter in Fuel Specialties but a very difficult quarter in Active Chemicals. Turning to the individual business segments, starting with slide seven, in Fuel Specialties revenue growth was 10% for the quarter which is well below it’s 34% in the first quarter but still quite solid considering the macro-environment it is facing in both the U.S. and EMEA. Revenues could have been somewhat stronger if not for some raw material supply issues in certain areas. The 10% revenue growth was driven by…

Moving on to slide 13, which shows Innospec’s ongoing operating profitability, this is one of the key metrics we have used to illustrate our success in transforming Innospec over the last three years. While this metric was down in the second quarter, reflecting the weakness in Active Chemicals. For the six months of 2008 our ongoing operating profitability was $24.8 million, up 15% from a year ago. I would remind everyone that just three years ago our operating income from Fuel Specialties and Active Chemicals, our ongoing growth businesses, did not even cover our corporate costs. We were actually losing money on this basis. Slide 14 shows the changes we have made in some of our guidance ranges. We remain comfortable with our original revenue and gross margin ranges for Fuel Specialties. In Active Chemicals, we have actually increased our revenue guidance to a 10% to 14% increase, up from 8% to 12% previously. However, we have reduced our expectations for its gross margin to 10% to 14% from 18% to 22% previously. In Octane Additives, we now expect a 25% to 30% revenue decline compared with our previous expectation of a 15% to 20% decline mainly reflecting our revised outlook for the timing of shipments over the balance of the year. We now expect Octane Additives’ gross margin to be between 40% and 44% compared with 43% to 47% previously. In addition, we’re now estimating the full year tax rate as approximately 34% compared with 35% previously. I would point out that when you do the math from these adjustments to our guidance ranges using the mid-point in every case, they add up to a projected reduction in our total gross profit for 2008 from that originally expected of less than 9%. Turning to slide 15, I’d like to…

(Operator Instructions) Your first question comes from Jonathan Lichter – Sidoti & Company, LLC. Jonathan Lichter – Sidoti & Company, LLC: What percentage of Active Chemicals’ contracts can you get pricing on?

As we’ve said in the call there were a number of contracts within certain aspects of the business that we’ve been tied into but ultimately what we are looking to do with the Active Chemicals is look for significant price increases across the whole of our business and that’s something that we’re working on with immediate effect and we will be looking to push through over the coming months. Jonathan Lichter – Sidoti & Company, LLC: Are you actually prepared to walk away from some business if you can’t get pricing?

I think we’d have to look at each individual piece of business on that, Jonathan, in terms of the actual margin and contribution it makes but if we felt that it was detrimental to Innospec then yes we’d do that. Jonathan Lichter – Sidoti & Company, LLC: Did you have, or how early did you have visibility into these rising costs? How early in the quarter?

What we’ve seen in the last quarter in Active Chemicals is price increases for some of our base raw materials of anything from 20% to 35%. In addition, we’ve seen energy costs increase and go over 40%. When you actually track that through the quarter we’ve seen a real spike in June. We have seen increases in April and May but particularly June was a very, very high month of increases for us so the visibility that we had wasn’t quite as open as we would have liked. Jonathan Lichter – Sidoti & Company, LLC: On Fuel Specialties I think you mentioned that the second half would be more difficult. Are you having any pushback in terms of getting pricing there?

I think in Fuel Specialties we’ve consistently said that the full year expectations were within the range and we haven’t changed that despite some push on that based on the excellent first half of the year. In some areas there is some increasing competition in certain product ranges which is making it more difficult for us to put prices through. But overall, I think that business is doing an exceptional job of being able to handle that and with a few exceptions we believe that that is something that we can continue to do.

Your next question comes from Jeffrey Zekauskas – J.P. Morgan. Jeffrey Zekauskas – J.P. Morgan: In terms of the raw material disruptions you had in Fuel Specialties, how much did that hurt your volumes in the quarter and is that fixed?

One of the things we’ve seen in Fuel Specialties this quarter is about a two percentage point drop off in our volumes. That is mainly due to some supply issues we’ve had with certain raw materials. We are on with fixing that. It’s hurt our margins and it’s hurt our ability to sell. There is no issue with demand in the medium term. I’m not going to tell you which raw material that is because that is obviously a sensitive issue we’re looking to resolve either with our current supplier or other suppliers. Jeffrey Zekauskas – J.P. Morgan: So it’s not yet resolved, so there may be a volume penalty in the third quarter? Is that what you’re saying?

I think in the third quarter, Jeff, we will see some margin impact and some potential volume issues. We have though some strategic stock in this area but we remain unresolved completely on this issue. Jeffrey Zekauskas – J.P. Morgan: In the Active Chemical area, which you are going to put together with Fuel Specialties, you spoke of cost reduction efforts and restructuring efforts. How much do you expect to save and how much will that cost you?

We booked in the second quarter a restructuring charge which principally takes care of the amount of restructuring we expect to see and that was about the $1 million. And the people related to that have already left the business but the principal reason for doing this, Jeff, was not one in terms of a cost reduction per se; it was more about leveraging the skills and the expertise and the performance that we’ve seen in our Fuel Specialties area. They have done a great job over the last few years in terms of managing pricing, running their business on a regional basis and being extremely customer focused and that’s something that I thought was needed in greater degree within Active Chemicals. And I think the team that we’ve got within that business can handle it and we will start to see the improvements overall across Innospec. Jeffrey Zekauskas – J.P. Morgan: I guess, lastly, in Octane Additives, your gross margin was pretty good this quarter. It was maybe 52% or so which was up about 1200 basis points from the first quarter when your sales were much higher. So what was it about this quarter that was so profitable? Is it have, does it have something to do with the mix or with your inventory costs? What’s there?

Jeff, you’re absolute right when you said mix. We have a number of countries which we sell to and some are more profitable than the others. This quarter was just a more profitable mix going through for us than the same quarter last year. Jeffrey Zekauskas – J.P. Morgan: There wasn’t, as least as I understood your comments, there wasn’t much change in average pricing? Is that something that will be true for the year or that’s something that had to do with the mix in this quarter?

We have had some average pricing changes, Jeff, but that is more masked by the mix and we had some obvious increases year-over-year but yes the mix has played the biggest part of that.

Your next question comes from David Wilson – Smith Barney. David Wilson – Smith Barney: Could you give me an idea of what your Avgas volumes are and what pricing is doing in that market?

We don’t normally state the actual Avgas volume per se in terms of actual tonnage. All I would state it’s a much greater part of what we sell in tetra ethyl lead at this stage than it used to be and as you know those volumes get reported within our Fuel Specialties business. In terms of pricing, where we can we have looked at increases year-over-year and will continue to look at that but there are a couple of areas where that’s a little bit more challenging but we are looking to try and manage the margins as much as we can. David Wilson – Smith Barney: The inventory build you said are, is any of that in the TEL of the Avgas markets?

Some of it is in the TEL business and we’re taking some opportunities to build some strategic inventory there, yes.

We have no further questions.

Thank you and thank you all for your questions. I would now like to leave you with a few final thoughts. While we are far from satisfied with our overall results for the quarter, it is important to note that our largest business, Fuel Specialties, remains on track for a strong year in 2008. We have fine tuned our guidance ranges for both Active Chemicals and Octane Additives but the adjustments add up to a relatively small change in our overall outlook for the year. In many ways, our strategy today remains the same as it was three years ago. We want to continue running our core businesses better and we’ve clearly set the stage for that with our new, integrated global Specialty Chemicals organizational structure. We continue to believe our ongoing growth businesses in Fuel Specialties and Active Chemicals have strongly leadership positions in attractive markets which we are well positioned to leverage in the years ahead. We are steadily increasing the understanding and visibility of the company and [inaudible] improving our capital management through our share repurchases and steady growth in our cash dividend. If you have any further questions, please give Kate, Ian, Patrick or myself a call. If we don’t hear from you in the meantime, we will look forward to sharing our third quarter results with you at that time. Thanks again for being with us on the call today.