IAX Intl Absorbents

International Absorbents Announces Record Sales for Fiscal Year 2004 BELLINGHAM, Wash., April 2 /PRNewswire-FirstCall/ -- International Absorbents Inc. , a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the fiscal year 2004 ended January 31, 2004. Sales for fiscal year 2004 increased 22% to a record $19,618,000 compared to $16,077,000 for fiscal year 2003. Gross profit for the fiscal year ended January 31, 2004 increased 10% to $7,456,000 versus $6,799,000 for the fiscal year ended January 31, 2003. Net income for fiscal year 2004 was $1,435,000 compared to $1,503,000 for the prior fiscal year, a decrease of 5%. Basic earnings per share decreased to $0.25 for fiscal year 2004 compared to $0.27 for fiscal year 2003. "Fiscal 2004 was a year of significant events that collectively contributed to International Absorbents' strong prospects for long-term competitiveness and profitability," commented Gordon L. Ellis, Chairman of International Absorbents Inc. "We have set ambitious goals for our Company and believe that we are well on our way to achieving them. We anticipate that infrastructure improvements already completed in the Pacific Northwest and ongoing expansion on the East Coast will give us the physical capacity to provide the products required to support our growth strategies. We have also broadened our strength in mid-level and senior management positions. We expect our increased strength in sales and marketing areas to drive our growth in the years to come. As projected, the building of this infrastructure and personnel base has put downward pressure on our net profits. This is viewed as a necessary, short term consequence of progressive steps that we believe will benefit the Company substantially in the future." "The major factor that caused net income to remain relatively flat was our increased sales and marketing expenses," continued Mr. Ellis. "This was a direct result of our strategy to protect and grow our core business and to diversify into new product lines and market channels. Secondary factors which also had an adverse effect on net income arose out of our three-phase capital expansion plan, including increased depreciation from our new facilities and the related interest payments on debt used to acquire the new facilities." For the convenience of the reader, the Company's Consolidated Balance Sheet, Statement of Earnings, and Statement of Cash Flows,all without notes, have been attached. Please refer to the Company's fiscal year 2004 report on Form 10-KSB for statement details. 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/. FINANCIAL HIGHLIGHTS Fiscal 2004 Fiscal 2003 Salesrevenues $19,618,000 $16,077,000 Net cash flow from operating activities 1,769,000 2,343,000 Earnings before income taxes 2,220,000 2,227,000 Net earnings 1,435,000 1,503,000 Basic earnings per share 0.25 0.27 Total assets 15,943,000 10,309,000 Shareholder's equity 10,503,000 8,819,000 Weighted average shares (basic) 5,710,000 5,663,000 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 statementis 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 sustaingrowth. 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 limitedto, 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., Toll Free, 1-866-514-6559, or +1-604-681-6181, or Web site: http://www.absorbent.com/

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