Letter from the President

Statement from the President and Chief Executive Officer

At TPC Group, sustainability combines economic success with social responsibility and environmental protection. This principle encompasses many of the core values that guide how we do business.

Our commitment to sustainability is reflected not only in our efforts to establish environmentally and socially responsible business practices throughout our organization, but also by working with customers, suppliers, and other business partners who, like us, are looking to build a sustainable future. For TPC, sustainable management minimizes risks, promotes existing business, and helps create new opportunities

Throughout the past several years, we have illustrated our commitment to sustainability in many ways. For example, we have enhanced management systems throughout our operations, committed to the Responsible Care^® principles of the American Chemical Council, increased public outreach, reduced emissions to the environment, strengthened process safety management systems, broadened our investment commitment in the communities where we operate, developed and maintained one of the most robust energy management systems in the industry, and rolled out new business code of conduct and whistleblower systems -- all while also weathering the economic downturn, strengthening the financial performance of the Company, registering the Company’s common stock with the Securities and Exchange Commission, and listing our Company on The NASDAQ Capital Market.

This report – TPC’s first sustainability report – is designed to provide a window to investors, the public at-large, and all other stakeholders into our overall sustainability performance. While we provide financial reporting through our public filings and conference calls, the full range of our sustainability performance and programs are only addressed in this report. True to the broad tripart definition of “sustainability”, our report addresses environmental and social issues in detail and summarizes the economic component.

Some of our recent accomplishments include:

• Reduced our reportable releases by 47 percent compared to 2006
• Reduced our greenhouse gas emissions by 33 percent and our nitrogen oxide emissions by 68 percent compared to 2006
• Reduced emissions of 1,3-butadiene from our Houston plant by over 75 percent from the baseline year of 2004
• Increased our financial contribution to community programs by almost 300 percent over a four-year period

We are committed to being environmental stewards and community partners every day, and we have achieved much along the way.  We regard the path to sustainable operations as continuing, and will stay the course for many years to come. Some of our goals include:

• Develop and roll out new Company mission, vision, and values
• Obtain Responsible Care^® certification
• Implement new industry recommended practices on process safety metrics and fatigue management along with additional enhancements to other process safety system
• Upgrade our chemical plant security infrastructure
• Construct a new laboratory for research, development, and quality assurance

Although this may be our first company sustainability report, it will not be our last. We pledge to continue our drive towards zero injuries and process safety events, further implement technology and initiate projects to reduce our emissions and energy consumption, and broaden our partnerships with stakeholders to foster relationships built on accountability. I look forward to discussing our achievements and progress towards these goals in the 2012 sustainability report.

Sincerely,

Michael T. McDonnell
President and Chief Executive Officer