Valhi, Inc. : VALHI REPORTS FOURTH QUARTER 2012 RESULTS

           Valhi, Inc. : VALHI REPORTS FOURTH QUARTER 2012 RESULTS

 DALLAS, TEXAS . .  March 15, 2013. Valhi,  Inc. (NYSE: VHI) reported  a 
loss from continuing  operations attributable to  Valhi stockholders of  $12.6 
million, or $.04 per diluted share, in the fourth quarter of 2012 compared  to 
income from continuing operations attributable to Valhi stockholders of  $55.3 
million, or $.16 per diluted  share, in the fourth  quarter of 2011. For  the 
full year 2012, Valhi reported income from continuing operations  attributable 
to Valhi stockholders of $141.4 million,  or $.41 per diluted share,  compared 
to $214.5 million, or $.63 per diluted  share, in the full year 2011.  Changes 
in reported net income attributable to Valhi stockholders are primarily due to
changes in operating results in the Company's Chemicals Segment.

 The  Chemicals Segment's  net  sales of  $396.7  million in  the  fourth 
quarter of 2012 were $40.7 million, or 9%, lower than in the fourth quarter of
2011. Net sales  of $1,976.3  million in  the full  year of  2012 were  $33.0 
million, or 2%, higher than in the full year 2011. Net sales decreased in the
fourth quarter of 2012 as compared to the fourth quarter of 2011 due to  lower 
average TiO[2] selling prices partially  offset by higher sales volumes.  Net 
sales increased  in the  full year  of 2012  primarily due  to higher  average 
TiO[2] selling prices, partially offset by lower sales volumes. The Chemicals
Segment's average TiO[2] selling prices decreased 14% in the fourth quarter of
2012 as compared to the fourth quarter of 2011, and increased 10% for the full
year as  compared to  2011. The  Chemicals Segment's  average TiO[2]  selling 
prices at the end of 2012 were 17% lower than at the end of 2011 and were  10% 
lower than at the end of the  third quarter of 2012. TiO[2 ]sales volumes  in 
the fourth quarter of 2012 were 6% higher than in the fourth quarter of  2011, 
while sales  volumes for  the full  year 2012  were 6%  lower than  in  2011. 
Fluctuations in currency exchange rates  also impacted net sales  comparisons, 
decreasing net sales by  approximately $12 million in  the fourth quarter  and 
approximately $82 million  in the  full year 2012  as compared  to 2011.  The 
table at the end of this press release shows how each of these items  impacted 
the overall change in sales.

 The Chemicals Segment's operating income was $2.7 million in the  fourth 
quarter of 2012 compared to operating  income of $145.2 million in the  fourth 
quarter of 2011. For the full  year the Chemicals Segment's operating  income 
was $366.8  million  compared  to  $553.0  million  in  2011.  The  Chemicals 
Segment's operating income decreased in  the fourth quarter of 2012  primarily 
due to the  negative effects  of lower  average TiO[2]  selling prices,  lower 
production volumes and higher raw material costs, offset in part by the higher
sales volumes. The Chemicals Segment's operating income decreased in the full
year of 2012 primarily due to  lower sales and production volumes, higher  raw 
materials costs and  the unfavorable  effects of  unabsorbed fixed  production 
costs resulting from  reduced production volumes,  partially offset by  higher 
TiO[2] selling prices. The Chemicals Segment's TiO[2] production volumes were
20% lower in the fourth quarter of  2012 as compared to the fourth quarter  of 
2011, and were 15% lower for the year. During the fourth quarter of 2012, the
Chemicals Segment operated  its facilities at  approximately 80% of  practical 
capacity primarily to  align production  and inventory levels  to current  and 
anticipated near-term customer  demand levels.  Operating income  comparisons 
were also impacted by the effects of fluctuations in currency exchange  rates, 
which decreased operating  income by  approximately $9 million  in the  fourth 
quarter and by approximately $10 million for the year.

 The Component Products Segment's net sales increased 3% in the
fourth quarter of 2012 as compared to the fourth quarter 2011 and increased 4%
in the full year 2012 compared to 2011. Net sales increased principally due
to growth in customer demand within both of the Component Products Segment's
businesses resulting from somewhat improved economic conditions in North
America. The Component Products Segment's operating income from continuing
operations decreased to nil and $5.4 million, in the fourth quarter and full
year of 2012, respectively, compared to operating income from continuing
operations of $1.4 million and $6.4 million in the same periods of 2011.
Operating income from continuing operations comparisons were negatively
impacted by higher self-insured medical costs in 2012. In addition, the 2011
and 2012 full year include the impact of write-downs on assets held for sale
of $1.1 million and $1.2 million, respectively, of which $.8 million of the
2012 impairment was recognized in the fourth quarter.

The Waste Management  Segment's sales  increased significantly  in the  fourth 
quarter and  full  year  of 2012  compared  to  2011, as  we  routinely  began 
receiving low-level  radioactive  waste ("LLRW")  for  disposal at  the  newly 
completed Compact disposal facility  during the third  and fourth quarters  of 
the year. We recognized a positive gross margin in the fourth quarter of  2012 
and significantly reduced our negative gross  margin in the full year 2012  as 
compared to  2011  as a  result  of  increased sales.  Our  Waste  Management 
operating loss was lower in the fourth quarter and full year 2012 compared  to 
2011 due to our increased sales; however we still recognized operating  losses 
in both periods as the Compact disposal facility sales continue to improve and
the Federal LLRW facility had not yet received LLRW for disposal by the end of
2012. The Compact  LLRW site  was fully  certified and  operational in  April 
2012, and  the  Federal LLRW  site  was  fully certified  and  operational  in 
September 2012.

 Insurance recoveries relate to amounts NL received from
certain of its former insurance carriers, and relate principally to the
recovery of prior lead pigment and asbestos litigation defense costs incurred
by NL. Substantially all of the insurance recoveries we recognized in 2011
relate to a third quarter settlement we reached with one of our insurance
carriers in September 2011 in which they agreed to reimburse NL for a portion
of its past lead pigment litigation defense costs. These insurance recoveries
(net of income taxes and noncontrolling interest) aggregated $.03 and $.01 per
diluted share in the full years 2011 and 2012, respectively.

The Company recognized a $14.7 million gain in the second quarter of 2012
($7.8 million, or $.02 per diluted share, net of income taxes and
noncontrolling interest) related to the third and final closing of a
settlement agreement associated with certain real property NL formerly owned.
Securities earnings in the fourth quarter of 2012 include a $21.8 million,
$13.2 million or $.04 per diluted share (net of income taxes and
noncontrolling interest) related principally to the sale of the Company's
shares of TIMET common stock in December 2012, which is included in securities
earnings. The Company also recognized a gain on the sale of certain excess
real property owned by NL in the fourth quarter of 2012 of $3.2 million ($1.7
million or $.01 per diluted share, net of income taxes and noncontrolling
interest). Also included in the fourth quarter of 2012 is a $6.4 million
goodwill impairment charge ($5.3 million or $.02 per diluted share, net
noncontrolling interest) associated with NL's insurance brokerage subsidiary.

General corporate expenses were flat at $7.9 million in the fourth quarter of
2012 compared to $8.0 million in the same period in 2011. Corporate expenses
were 11% higher at $45.3 million in the full year 2012 compared to the same
period in 2011, primarily due to higher environmental remediation and related
expense recognized in the first quarter of 2012.

 As previously reported, in March 2011 the Chemicals Segment redeemed €80
million principal amount of Kronos  International, Inc.'s 6.5% Senior  Secured 
Notes due  2013, and  in the  third  quarter of  2011, the  Chemicals  Segment 
repurchased in open  market transactions aggregating  €30.4 million  principal 
amount of the Senior Notes. As a result of these redemptions and open  market 
purchases, the Company's results in the full year of 2011 include a net charge
of $3.1 million ($1.7  million, net of income  tax benefit and  noncontrolling 
interest) consisting of the call  premium, gain repurchases and the  write-off 
of unamortized deferred financing costs and original issue discount associated
with the redeemed and  purchased Notes. In June  2012, the Chemicals  Segment 
entered into a  new $400  million term  loan, and used  a portion  of the  net 
proceeds to redeem  the remaining  €279.2 million principal  amount of  Senior 
Notes outstanding. As a result, we recognized a second quarter 2012 charge of
$7.2 million ($3.7 million  or $.01 per  share net of  income tax benefit  and 
noncontrolling interest benefit) associated  with the early extinguishment  of 
such remaining Senior Notes.

 The  Company's  provision  for  income taxes  in  2012  includes  a  net 
incremental tax benefit of $3.1 million. As previously reported, the  Company 
had determined during the third quarter of 2012 that due to global changes  in 
the business  the Company  would not  remit any  dividends from  its  non-U.S. 
jurisdictions.  As  a  result,  certain  current  year  tax  attributes  were 
available for carryback to offset prior year tax expense and its provision for
income taxes in the third quarter included an incremental tax benefit of $11.1
million. However, as  a result of  a change in  circumstances related to  our 
sale of TIMET common stock, which sale provided an opportunity for us to elect
to claim  foreign tax  credits, we  determined that  we could  tax-efficiently 
remit non-cash dividends from our non-U.S. jurisdictions before the end of the
year that absent the TIMET sale would not have been considered. As a  result, 
our provision  for  income  taxes  in the  fourth  quarter  of  2012  includes 
incremental taxes on the non-cash dividends remitted in the fourth quarter  of 
$8.0 million.

 The  Company's provision  for  income taxes  in  2011 includes  a  $17.2 
million provision  for U.S.  incremental  income taxes  ($4.0 million  in  the 
fourth quarter) on  earnings repatriated from  the Chemicals Segment's  German 
subsidiary, which earnings were used to fund a portion of the redemptions  and 
repurchases of its Senior Secured Notes.  The 2011 income tax provision  also 
includes a non-cash  benefit of $8.5  million ($.02 per  diluted share net  of 
noncontrolling interest), mostly in the third quarter, related to the decrease
in the reserve for uncertain tax positions.

 In December 2012, the Company completed the sale of Component Products
Segment's furniture components operations to a competitor for proceeds, net of
expenses, of approximately $58.0 million in cash. The Company recognized a
pre-tax gain of approximately $23.7 million on the disposal of these
operations ($15.7 million, or $.05 per diluted share, net of income taxes and
noncontrolling interest). Discontinued operations also includes full-year
income related to the operations of such disposed unit of $3.0 million, or
$.01 per diluted share, net of income taxes and noncontrolling interest, in
2011 and $2.7 million, or $.01 per basic and diluted share, net of income
taxes and noncontrolling interest in 2012. The Company has reclassified our
Condensed Consolidated Statement of Operations to reflect the disposed
business as discontinued operations for all periods.

 In May 2012, we  implemented a 3-for-1 split of  our common stock in  the 
form  of  a  stock  dividend.  We  have  adjusted  all  share  and  per-share 
disclosures for all periods presented in this press release to give effect  to 
the stock split.

 The statements  in this press  release relating to  matters that are  not 
historical facts are  forward-looking statements  that represent  management's 
beliefs and assumptions  based on currently  available information.  Although 
the Company  believes  the  expectations  reflected  in  such  forward-looking 
statements  are  reasonable,  it  cannot   give  any  assurances  that   these 
expectations will  be  correct.  Such  statements  by  their  nature  involve 
substantial risks and uncertainties  that could significantly impact  expected 
results,  and  actual  future  results  could  differ  materially  from  those 
predicted. While  it is  not possible  to identify  all factors,  the  Company 
continues to face many risks and uncertainties. Among the factors that  could 
cause our actual  future results  to differ  materially include,  but are  not 
limited to, the following:

  oFuture supply and demand for our products;
  oThe extent of the dependence of certain of our businesses on certain
    market sectors;
  oThe cyclicality of certain of our businesses (such as Kronos' titanium
    dioxide pigment ("TiO[2]") operations);
  oCustomer inventory levels;
  oUnexpected or earlier-than-expected industry capacity expansion;
  oChanges in raw material and other operating costs (such as energy, ore and
    steel costs) and our ability to pass those costs on to our customers or
    offset them with reductions in other operating costs;
  oChanges in the availability of raw materials (such as ore);
  oGeneral global economic and political conditions (such as changes in the
    level of gross domestic product in various regions of the world and the
    impact of such changes on demand for, among other things, TiO[2 ]and
    component products);
  oPrice and product competition from low-cost manufacturing sources (such as
    China);
  oCompetitive products and substitute products;
  oPotential consolidation of our competitors;
  oPossible disruption of our business or increases in the cost of doing
    business resulting from terrorist activities or global conflicts;
  oCustomer and competitor strategies;
  oThe impact of pricing and production decisions;
  oCompetitive technology positions;
  oThe introduction of trade barriers;
  oThe ability of our subsidiaries to pay us dividends;
  oThe impact of current or future government regulations (including employee
    healthcare benefit related regulations);
  oUncertainties associated with new product development and the development
    of new product features;
  oFluctuations in currency exchange rates (such as changes in the exchange
    rate between the U.S. dollar and each of the euro, the Norwegian krone and
    the Canadian dollar) or possible disruptions to our business resulting
    from potential instability resulting from uncertainties associated with
    the euro;
  oOperating interruptions (including, but not limited to, labor disputes,
    leaks, natural disasters, fires, explosions, unscheduled unplanned
    downtime, transportation interruptions and cyber attacks);
  oThe timing and amounts of insurance recoveries;
  oOur ability to renew, amend, refinance or establish credit facilities;
  oOur ability to maintain sufficient liquidity;
  oThe ultimate outcome of income tax audits, tax settlement initiatives or
    other tax matters;
  oOur ultimate ability to utilize income tax attributes or changes in income
    tax rates related to such attributes, the benefits of which have been
    recognized under the more-likely-than-not recognition criteria (such as
    Kronos' ability to utilize its German net operating loss carryforwards);
  oEnvironmental matters (such as those requiring compliance with emission
    and discharge standards for existing and new facilities, or new
    developments regarding environmental remediation at sites related to our
    former operations);
  oGovernment laws and regulations and possible changes therein (such as
    changes in government regulations which might impose various obligations
    on former manufacturers of lead pigment and lead-based paint, including
    NL, with respect to asserted health concerns associated with the use of
    such products);
  oThe ultimate resolution of pending litigation (such as NL's lead pigment
    litigation, environmental and other litigation and Kronos' class action
    litigation);
  oOur ability to comply with covenants contained in our revolving bank
    credit facilities;
  oOur ability to complete and comply with the conditions of our licenses and
    permits;
  oOur ability to successfully defend against any currently-pending or
    possible future challenge to WCS' operating licenses and permits; and
  oPossible future litigation.

Should one or  more of these  risks materialize (or  the consequences of  such 
development worsen),  or should  the underlying  assumptions prove  incorrect, 
actual results  could differ  materially from  those currently  forecasted  or 
expected. We disclaim  any intention or  obligation to update  or revise  any 
forward-looking statement  whether  as a  result  of changes  in  information, 
future events or otherwise.

Valhi, Inc. is engaged  in the titanium  dioxide pigments, component  products 
(security  products,  furniture   components  and   high  performance   marine 
components) and waste management industries.

                                  * * * * *

VALHI, INC. AND SUBSIDIARIES                                   
CONDENSED SUMMARY OF OPERATIONS
(In millions, except earnings per share)

                        Three months ended               Year ended
                           December 31,                 December 31,
                        2011          2012         2011          2012
                    (unaudited)                              
                                                          
Net sales                                                  
 Chemicals        $ 437.4     $ 396.7     $ 1,943.3   $ 1,976.3
 Component         18.6     19.3           83.2
products                                           79.8
 Waste management  .7   11.4         27.8
                                                   2.0
                                                          
 Total net   $ 456.7     $ 427.4     $ 2,025.1   $ 2,087.3
sales
                                                          
Operating income                                           
(loss)
 Chemicals        $ 145.2     $ 2.7    $ 553.0   $ 366.8
 Component         1.4   -               
products                                           6.4           5.4
 Waste management  (10.1)    (4.9)         
                                                   (38.0)        (26.8)
                                                          
 Total        136.5     (2.2)   521.4   345.4
operating income
(loss)
                                                          
Equity in earnings                   
of investee          (.2)           (.1)           (.5)          (.2)
                                                          
General corporate                                          
items:
 Securities        7.2    28.7           50.2
earnings                                           28.6
 Insurance         .3   .7        
recoveries                                         16.9          3.3
 Litigation       -           -           -           14.7
settlement gain
 Gain on sale of  -            3.2   -          
excess property                                                  3.2
 Goodwill         -            (6.4)  -          
impairment                                                       (6.4)
 General           (8.0)   (7.9)         
expenses, net                                      (40.7)        (45.3)
 Gain (loss) on    .1  -                
the prepayment of                                  (3.1)         (7.2)
debt
Interest expense      (13.6)    (13.9)          
                                                   (61.8)        (56.3)
                                                          
 Income from                                       
continuing
operations,
 before     122.3     2.1    460.8   301.4
income taxes
                                                          
Provision for income  46.8     15.1     169.9   104.8
taxes
                                                          
 Income (loss)     75.5     (13.0)    290.9   196.6
from continuing
operations
 Income from       0.3    22.2         25.5
discontinued                                       4.1
operations, net of
tax
 Net income   75.8     9.2    295.0   222.1
                                                          
Noncontrolling                                             
interest in net
income
 of subsidiaries     20.2     5.7          62.3
                                                   77.5
                                                          
 Net income                                        
attributable to
Valhi
           $ 55.6    $ 3.5    $ 217.5   $ 159.8
stockholders
                                                          

VALHI, INC. AND SUBSIDIARIES                                   
CONDENSED SUMMARY OF OPERATIONS (CONTINUED)
(In millions, except earnings per share)

                        Three months ended               Year ended
                           December 31,                 December 31,
                        2011         2012          2011          2012
                    (unaudited)                              
                                                          
Amounts attributable                                       
to Valhi
stockholders:
                                                          
 Income (loss)    $ 55.3    $ (12.6)  $ 214.5    $ 141.4
from continuing
operations
 Income from       .3   16.1         18.4
discontinued                                      3.0
operations
 Net income     $ 55.6    $ 3.5   $ 217.5    $ 159.8
attributable to
Valhi stockholders
                                                          
 Basic and diluted                                        
net income per
share:
 Income (loss)    $ .16    $ (.04)  $ .63  $ .41
from continuing
operations
 Discontinued     -            .05       
operations                                        .01            .06
 Net income per                                       
share attributable
to Valhi
 stockholders   $ .16    $ .01   $ .64  $ .47
                                                          
Basic and diluted                                          
weighted average
shares
outstanding          342.0     342.0    342.1    342.0
                                                          

VALHI, INC. AND SUBSIDIARIES                                            
IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES             
                                                                       
                                                                       
                                                                       
                                        Three months ended    Year ended
                                           December 31,      December 31,
                                          2012 vs. 2011      2012 vs. 2011
                                                 (unaudited)           
                                                                       
Percentage change in TiO[2] sales :                                 
 TiO[2] product pricing                   (14) %               10 %
 TiO[2] sales volumes                        6               (6) 
 TiO[2] product mix                          2                 2 
 Changes in currency exchange rates        (3)               (4) 
                                                                   
 Total                                (9) %                2 %
                                                                   

SOURCE: Valhi, Inc.
CONTACT: Bobby D. O'Brien, Vice President and
 Chief Financial Officer
 (972) 233-1700

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