International Absorbents Rolls Out New Line of Cat Litter; 90 Day Sales Launch Target of 1027 Stores FERNDALE, Wash., July 27 /PRNewswire-FirstCall/ -- International Absorbents Inc. (AMEX:IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today announced the roll out of its new line of Healthy Pet brand cat litter with a sales launch target of 1027 stores within 90 days. Healthy Pet brand is the Company's new line of cat litters targeting wholelistic and lifestyle consumers. The brand includes five different litter products in recognizably similar packaging, each product emphasizing distinctly different environmental or performance characteristics. The Company's national sale force has identified 1027 retail target outlets in both the pet specialty and grocery distribution channels in selected West Coast and Northeast markets. Roll out to these locations is currently underway. "Cat litter offers a new product category for the Company with good revenue potential in a billion dollar market," says Gordon L. Ellis, Chairman of International Absorbents Inc. "Our marketing studies have identified a fast growing market niche in which our new products can be very competitive. By focusing our efforts on specific consumer markets with demographics identified as receptive to our lifestyle brand positioning, and by partnering with retailers that have a similar consumer demographics and retailer strategy, we anticipate good growth in this sector. "Entry into the cat litter market is consistent with our strategy to focus growth in our existing areas of expertise, in this case, the animal care products sector. These cat litters complement our existing animal care products in pet specialty and give us the opportunity to leverage our bedding products into mass and grocery customers. The size of the cat litter market supports the potential to meet and exceed the Company's current revenues." International Absorbents Inc. develops, manufactures and markets patented and proprietary, cost effective consumer and commercial products derived from recycled, renewable materials. These environmentally safe products outperform conventional products used in a broad range of consumer and industrial applications, including retail/commercial pet bedding and litter, oil and hazardous liquid spill cleanup and control, oil/water filtration, and packaging. Further information is available at http://www.absorbent.com/. Contact: Charles (Chuck) Tait International Absorbents Inc. Toll Free: 866-514-6559 or 604-681-6181 A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including without limitation, statements referring to the Company's future growth strategies, prospects for the future, potential financial results, market and product line growth, abilities to enter new markets, ability to introduce new products, benefits from infrastructure improvements and the Company's competitiveness and profitability as a result of new sales and marketing programs, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "assume" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and it is important to note that the Company's actual results could differ materially from those projected, due to various risk factors. Those risks include, but are not limited to contractor performance, newly installed equipment performance, weather related construction issues, consumer acceptance of the Company's products at a new location, competitor reactions and their ability to market and price their products, general economic conditions outside of the control of the Company, and the economic availability of sources of raw materials to meet demand rates necessary to sustain growth. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's reports filed with the SEC, including, but not limited to, the Company's annual report on Form 10-KSB for the fiscal year ended January 31, 2004 and its quarterly filings on Form 10-QSB. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein DATASOURCE: International Absorbents Inc. CONTACT: Charles (Chuck) Tait of International Absorbents Inc., +1-866-514-6559, or +1-604-681-6181, or Web site: http://www.absorbent.com/

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