IAX Intl Absorbents

FERNDALE, Wash., April 10 /PRNewswire-FirstCall/ -- International Absorbents Inc. (AMEX:IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the fiscal year ended January 31, 2007. Sales increased 16% to $29,495,000 for fiscal year 2007 versus $25,436,000 for fiscal year 2006. Net income for fiscal year 2007 was $701,000, or $0.11 per share, compared to $655,000, or $0.10 per share, for fiscal year 2006, representing an increase of 7%. Gross profit for fiscal year 2007 was $9,593,000 compared to $7,648,000 for fiscal year 2006, a 25% increase. "Although we believe that the bottom line numbers do not reflect the full extent of improvements achieved during the year, progress in both top line and operating income has been good," commented Gordon L. Ellis, Chairman of International Absorbents Inc. "The downward trend seen in our margins in previous years has been reversed and positive cash flow is up substantially. The one-time charge related to an unfavorable decision in a long-standing legal suit has significantly influenced our bottom line but does not detract from the fact that the Company has performed well. CareFRESH(R) Ultra and CareFRESH(R) Colors continue to lead our sales growth as they assist with promoting the expansion of our products in new markets. Productivity at our facility in Georgia is up and the final stage of our three-phase infrastructure development plan is well underway. We anticipate that within the next several months our new Washington State manufacturing plant will be operational and we will be in a position where both of our manufacturing plants are modern and efficient. As we look forward, we believe that growth is continuing and we are getting better at what we do. We begin fiscal 2008 in a strong position with both the financial and physical resources to continue to grow our Company." 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.internationalabsorbents.com/. FINANCIAL HIGHLIGHTS Year Ended January 31, 2007 2007 2006 Sales, net $29,495,000 25,436,000 Gross profit 9,593,000 7,648,000 Net income before taxes 1,278,000 940,000 Net income 701,000 655,000 Basic earnings per share 0.11 0.10 Weighted average shares (basic) 6,404,000 6,263,000 Total assets $27,691,000 $24,513,000 Stockholders' equity 15,390,000 14,154,000 Net Cash Flows from operating activities 2,416,000 667,000 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 delays related to commissioning a new manufacturing plant, contractor performance, newly installed equipment performance, 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, 2005 and its quarterly filings on Form 10-Q and 10-QSB. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein. Contact: Charles (Chuck) Tait of International Absorbents Inc., Toll Free, +866-514-6559, or +1-604-681-6181, or . DATASOURCE: International Absorbents Inc. CONTACT: Charles (Chuck) Tait of International Absorbents Inc., Toll Free, +866-514-6559, or +1-604-681-6181, or Web site: http://www.internationalabsorbents.com/ Web site: http://www.absorbent.com/

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