IAX Intl Absorbents

International Absorbents Announces Six Month Results; Net Income Increases 60%, Sales Increase 18% FERNDALE, Wash., Sept. 9 /PRNewswire-FirstCall/ -- International Absorbents Inc. (AMEX:IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported a 60% increase in net income and an 18% increase in revenues for the six months ended July 31, 2004, as compared to the same six months in the previous fiscal year. Net income for the six months ended July 31, 2004 increased by 60% to $1,049,000, or $0.18 per share, versus $656,000, or $0.12 per share, for the previous year's six months. Gross profits for the six months improved to $4,492,000, or 41%, of sales compared to $3,536,000, or $38% of sales, for same period in the prior year. Net income for the second quarter of the current fiscal year (2005) was $447,000 compared to $338,000 last year, a 33% improvement. Sales for the six months of fiscal year 2005 were $10,996,000, compared to $9,349,000 for the prior year's six months, an increase of 18%. Sales for the second quarter increased by 14% to $5,495,000, versus $4,831,000 for the comparable period a year ago. Gordon L. Ellis, Chairman of International Absorbents Inc. commented on the results, "We are pleased with the progress made during the period to strengthen and grow the Company in order to build long-term value for our shareholders. Our strong financial performance is due to that progress, and is a direct result of the successful implementation of our business plan. Our flagship product CareFRESH(R) continues to grow within the projected range as a result of robust sales and strengthened product placement. Our strategy of diversification also showed success with the continued growth of pet products such as CareFRESH(R) Ultra(TM) and Critter Care(TM). "The completion last year of the first phase of our capital expansion plan has been a significant contributor to improved gross margins (gross profits divided by sales) this year. All of these factors along with a sustained focus on controlling expenses have improved our net profits over the previous year." 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 6 Months Ended Jul. 31 3 Months Ended Jul. 31 2004 2003 2004 2003 Sales $10,996,000 $9,349,000 $5,495,000 $4,831,000 Net income before taxes 1,533,000 1,036,000 587,000 528,000 Net income 1,049,000 656,000 447,000 338,000 Basic earnings per share 0.18 0.12 .08 .06 Weighted average shares (basic) 5,867,000 5,679,000 5,931,000 5,689,000 As at Jul. 31 As at Jan. 31 2004 2004 Total assets $19,292,000 $15,943,000 Stockholders' equity 11,997,000 10,503,000 Contact: Charles (Chuck) Tait International Absorbents Inc. Toll Free 866-514-6559 or (604) 514-6559 Email: A number of the matters and subject areas discussed in this International Absorbents Inc. (the "Company") 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 +1-604-514-6559, or Web site: http://www.absorbent.com/

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