TETRA Technologies, Inc. Announces Major Expansion of Its Fluids Business.

THE WOODLANDS, Texas -- TETRA Technologies, Inc. (TETRA or the Company) (NYSE:TTI) today announced that it intends to commercially develop its brine resources around Magnolia, Arkansas. When completed, this $100 million plus project will employ over 100 people and will entail brine production wells, a bromine plant, a calcium chloride plant and the expansion of TETRA's existing West Memphis, Arkansas bromide facility. TETRA is currently in discussions with the State of Arkansas regarding the availability of incentives related to the development of this project.

Geoffrey M. Hertel, President & Chief Executive Officer, stated, "This investment will support our worldwide oil and gas completion fluids business. It will also stabilize our costs for these products and will help us to supply our customers in what has become a very tight supply market. Construction will be accomplished in two phases, with the first phase expected to be operational by late 2007. The second phase is scheduled to be completed in 2009. The 2006 capital expenditures associated with this project were included in our January 5, 2006 Earnings Guidance press release.

"Both calcium chloride and brominated products (calcium bromide, sodium bromide and zinc bromide) have experienced large wholesale and retail price increases in the last eighteen months. As an example, wholesale prices for calcium bromide increased over 100% in 2005. A similar increase is anticipated in 2006. Over the last eighteen years, TETRA has partially integrated its Fluids Division by building plants which manufacture its end use products. The Magnolia facility, in conjunction with our other plants, will allow TETRA to produce all of the raw materials necessary to fully integrate our fluids business. The expansion at West Memphis will allow TETRA to take bromine from Magnolia and use it to manufacture brominated clear brine fluids (CBFs) for its oil and gas services business.

"This project would not have been possible had TETRA not begun acquiring brine leases near Magnolia over a decade ago. It took time to put together these leases, as the Magnolia area is where the two domestic producers of bromine operate their facilities. In total, TETRA has amassed approximately 33,000 gross acres of brine leases. This should be enough reserves to sustain a world scale bromine/calcium chloride manufacturing facility for twenty-five to thirty years.

"Historically, TETRA has primarily relied on by-product streams for most of the raw materials that are required for manufacturing its CBFs. This plant will utilize brine, thus reducing TETRA's reliance on by-product streams that have volatile prices. When fully operational, the facility will supply all of TETRA's bromine requirements, 300,000 dry equivalent short tons of calcium chloride (liquid, pellet and flake) and up to 300,000 short tons of sodium chloride.

"We do not believe that the bromine portion of this facility will be a threat to the two other domestic bromine producers (Albemarle and Chemtura), as we anticipate using this bromine exclusively for our CBFs business, and TETRA's current supply of non-owned bromide products is sourced internationally. Thus, this facility will supplant our international supply and should not disrupt domestic bromine markets.

"I can think of no better example of TETRA's mantra of 'building for the future' than this project, which culminates eighteen years of backward integration in our fluids business and utilizes brine reserves that were first secured a decade ago. Today, with extreme tightness in the markets and dramatic cost increases, the only way to offer assured products to our customers at stable prices is through a project like this," concluded Hertel.

TETRA is an oil and gas services company, including an integrated calcium chloride and brominated products manufacturing operation that supplies feedstocks to energy markets, as well as other markets.

This press release includes certain statements that are deemed to be forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Certain Business Risks" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.