It's not an issue as I can export to a new size correctly with iPhoto 9.4.3.
Tried export size Large, as well as Custom with a Maximum Dimension of 1280. Same problem.
That does not affect pixel dimensions. It only changes the amount of jpeg compression that is applied to the file which affects file size, not image size.
I suggest you update your system to 10.8.3 with the OS X Mountain Lion Update v10.8.3 (Combo) updater and update your iPhoto to the latest, 9.4.3. Then give it a try again.
Also you can give this a try first: Try the following:
1 - delete the iPhoto preference file, com.apple.iPhoto.plist, that resides in your
User/Home/Library/ Preferences folder.
2 - delete iPhoto's cache file, Cache.db, that is located in your
User/Home/Library/Caches/com.apple.iPhoto folder (Snow Leopard and Earlier).
or with Lion and Mt. Lion from the User/Library/Containers/com.apple.iPhoto/
Data/Library/Caches/com.apple.iPhoto folder
3 - launch iPhoto and try again.
NOTE 1: If you're moved your library from its default location in your Home/Pictures folder you will have to point iPhoto to its new location when you next open iPhoto by holding down the Option key when launching iPhoto. You'll also have to reset the iPhoto's various preferences.
NOTE 2: In Lion and Mountain Lion the Library folder is now invisible. To make it permanently visible enter the following in the Terminal application window: chflags nohidden ~/Library and hit the Enter button - 10.7: Un-hide the User Library folder.
OT