IAX Intl Absorbents

International Absorbents Announces Nine Month Results; Net Income Increased 48%, Sales Increased 13% FERNDALE, Wash., Dec. 10 /PRNewswire-FirstCall/ -- International Absorbents Inc. (AMEX:IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported a 48% increase in net income and a 13% increase in revenues for the nine months ended October 31, 2004, as compared to the same nine months in the previous fiscal year. For the nine months ended October 31, 2004, net income increased by 48% to $1,785,000, or $0.30 per share, compared to $1,203,000, or $0.21 per share, for the same nine months one year ago. Gross profit improved to $6,923,000, or 41% of sales, versus $5,783,000, or 39% of sales, for the same period last year. Sales for the nine months of fiscal year 2005 were $16,995,000, versus $15,012,000 for the previous year's nine months, an increase of 13%. Net income for the third quarter of the current fiscal year (2005) was $736,000 against $547,000 last year, a 35% increase. Gross profit for the quarter improved to $2,431,000, or 41% of sales, versus $2,247,000, or 40% of sales, for the third quarter last fiscal year. Sales for the third quarter improved by 6% to a record $5,999,000, compared to $5,663,000 for the comparable period a year ago. Commenting on the quarter, Gordon L. Ellis, Chairman of International Absorbents Inc., stated, "While posted record sales of six million for this recent quarter, our net income for the three quarters to date has already exceeded our net income for our full past fiscal year. At the same time, we have constructed a new state-of-the-art facility in Jesup, Georgia accident-free, and are now producing and shipping product from that location. We've been busy and I think the results speak for themselves." 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 9 Months Ended Oct. 31 3 Months Ended Oct. 31 2004 2003 2004 2003 Sales $16,995,000 $15,012,000 $5,999,000 $5,663,000 Net income before taxes 2,617,000 1,878,000 1,084,000 842,000 Net income 1,785,000 1,203,000 736,000 547,000 Basic earnings per share 0.30 0.21 .12 .10 Weighted average shares (basic) 5,915,000 5,679,000 6,011,000 5,689,000 As at Oct. 31 As at Jan. 31 2004 2004 Total assets $22,948,000 $15,943,000 Stockholders' equity 12,946,000 10,503,000 CONTACT: Charles (Chuck) Tait of International Absorbents Inc, toll free, 866-514-6559 or +1-604-514-6559, or . 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 that 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. CONTACT: Charles Tait of International Absorbents Inc., toll free, 866-514-6559 or +1-604-514-6559, or info@absorbent.com (IAX) DATASOURCE: International Absorbents Inc. Web site: http://www.absorbent.com/

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