TOR Minerals International Reports First Quarter Financial Results

CORPUS CHRISTI, Texas, April 26, 2012 – TOR Minerals International (Nasdaq: TORM), producer of synthetic titanium dioxide and color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the first quarter ended March 31, 2012. Highlights for the first quarter of 2012 as compared to the first quarter of 2011 included:

Revenue by Product Group (in ,000's)	1Q12	1Q11	% Change
TiO2 Pigments	$ 6,135	$ 4,454	38%
Specialty Aluminas	5,046	4,142	22%
Other	1,627	989	65%
Total	$ 12,808	$ 9,585	34%

Net sales increased 34 percent during the first quarter of 2012 due to increases in all three of the Company’s primary product categories. Sales of titanium dioxide (TiO2) pigments, which include HITOX®, TIOPREM® and synthetic rutile products, increased 38 percent to $6.1 million, as increased sales volume in North America and higher prices more than offset decreased sales volumes in Asia. Sales of specialty alumina, which includes the ALUPREM®, HALTEX® and OPTILOAD® product groups, increased 22 percent during the first quarter of 2012. In addition to increased volumes, specialty alumina sales benefited from a mix shift, which positively affected average selling prices.

Commenting on sales trends, Dr. Olaf Karasch, Chief Executive Officer, said, “We achieved record quarterly revenue again during the first quarter, marking our third quarter of record performance in the past four quarters. Overall, we continued to experience strong growth in sales volumes, as new customers are realizing the value-added characteristics of our niche specialty mineral products and are transitioning from sample to production order quantities. In addition, higher average selling prices in all of our product lines are contributing to our revenue growth.”

During the first quarter of 2012, favorable trends in pricing, product mix and sales volumes more than offset increased raw material and energy costs. As a result, gross margin improved 310 basis points year over year to 24.9 percent of sales. Operating income increased to $1.9 million, or 14.7 percent of sales, compared to operating income of $0.9 million, or 9.0 percent of sales, reported during the same period a year ago.

“We saw the favorable effects of increased pricing in our TiO2 pigment business during the first quarter and posted the highest quarterly operating margin in our history,” said Dr. Karasch. “In addition, we continued to demonstrate the earnings leverage in our business model and posted significant improvement in our profitability.

TOR Minerals will host a conference call at 4:00 p.m. Central Time on April 26, 2012, to further discuss first quarter results. The call will be simultaneously Webcast, and can be accessed via the News section on the Company's website, www.torminerals.com. Investors and interested parties may participate in the call by dialing 877-407-8033 and referring to conference ID # 392940.

Headquartered in Corpus Christi, Texas, TOR Minerals International is a global manufacturer and marketer of specialty mineral and pigment products for high performance applications with manufacturing and regional offices located in the United States, Netherlands and Malaysia.

This statement provides forward-looking information as that term is defined in the Private Securities Litigation Reform Act of 1995, and, therefore, is subject to certain risks and uncertainties. There can be no assurance that the actual results, business conditions, business developments, losses and contingencies and local and foreign factors will not differ materially from those suggested in the forward-looking statements as a result of various factors, including market conditions, general economic conditions, including the present slowdown in U.S. construction and the risks of a general business slow down or recession, the increasing cost of energy, raw materials and labor, competition, the receptivity of the markets for our anticipated new products, advances in technology, changes in foreign currency rates, freight price increase, commodity price increases, delays in delivery of required equipment and other factors.

Contact for Further Information
Dave Mossberg,
Three Part Advisors, LLC
817 310-0051

Financial Tables Follow TOR Minerals International, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2012 2011 NET SALES $ 12,808 $ 9,585 Cost of sales 9,618 7,494 GROSS MARGIN 3,190 2,091 Technical services and research and development 82 66 Selling, general and administrative expenses 1,224 1,159 OPERATING INCOME 1,884 866 OTHER EXPENSE: Interest expense (142) (96) Gain (loss) on foreign currency exchange rate 23 (48) INCOME BEFORE INCOME TAX 1,765 722 Income tax expense 369 47 NET INCOME $ 1,396 $ 675 Less: Preferred Stock Dividends - 15 Basic Income Available to Common Shareholders $ 1,396 $ 660 Plus: 6% Convertible Debenture Interest Expense 22 22 Plus: Preferred Stock Dividends - 15 Diluted Income Available to Common Shareholders $ 1,418 $ 697 Income per common share: Basic $ 0.58 $ 0.34 Diluted $ 0.41 $ 0.22 Weighted average common shares outstanding: Basic 2,402 1,941 Diluted 3,439 3,149 TOR Minerals International, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except per share amounts) March 31, December 31, 2012 2011 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,886 $ 3,381 Trade accounts receivable, net 6,030 4,921 Inventories 20,697 18,673 Other current assets 992 832 Total current assets 30,605 27,807 PROPERTY, PLANT AND EQUIPMENT, net 21,403 20,138 OTHER ASSETS 23 22 Total Assets $ 52,031 $ 47,967 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 3,930 $ 3,222 Accrued expenses 3,215 1,754 Notes payable under lines of credit 1,439 2,886 Export credit refinancing facility 2,457 1,254 Current deferred tax liability - 46 Current maturities - capital leases 93 28 Current maturities of long-term debt – financial institutions 832 813 Current maturities of long-term debt – convertible debentures 91 91 Total current liabilities 12,057 10,094 LONG-TERM DEBT, EXCLUDING CURRENT MATURITIES Capital leases 27 34 Long-term debt – financial institutions 2,497 2,668 Long-term debt – convertible debentures, net 1,144 1,127 DEFERRED TAX LIABILITY 687 619 Total liabilities 16,412 14,542 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Common stock $1.25 par value: authorized, 6,000 shares; 2,407 and 2,400 shares issued and outstanding at 3/31/2012 and 12/31/2011, respectively 3,009 2,999 Additional paid-in capital 28,302 28,222 Accumulated deficit (363) (1,759) Accumulated other comprehensive income: Cumulative translation adjustment 4,671 3,963 Total shareholders' equity 35,619 33,425 Total Liabilities and Shareholders' Equity $ 52,031 $ 47,967 TOR Minerals International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 1,396 $ 675 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 540 499 Share-based compensation 6 2 Warrant interest expense 17 17 Deferred income taxes 5 41 Changes in working capital: Trade accounts receivables (1,031) (897) Inventories (1,588) (290) Other current assets (142) (186) Accounts payable and accrued expenses 2,043 603 Net cash provided by operating activities 1,246 464 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (1,315) (513) Net cash used in investing activities (1,315) (513) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on lines of credit (1,543) (317) Net proceeds from (payments on) export credit refinancing facility 1,159 (235) Net proceeds from (payments on) capital leases 57 (25) Payments on long-term bank debt (204) (122) Proceeds from the issuance of common stock, and exercise of common stock options 83 534 Preferred stock dividends paid - (15) Net cash used in financing activities (448) (180) Effect of exchange rate fluctuations on cash and cash equivalents 22 66 Net decrease in cash and cash equivalents (495) (163) Cash and cash equivalents at beginning of year 3,381 2,559 Cash and cash equivalents at end of period $ 2,886 $ 2,396 Supplemental cash flow disclosures: Interest paid $ 140 $ 96 Non-cash financing activities: Conversion of debentures $ - $ 25