IAX Intl Absorbents

FERNDALE, Wash., Sept. 12 /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 second quarter and six months ended July 31, 2008. Sales for the six months increased by 13% to $17,759,000, versus $15,766,000 for the previous year's six months. Sales for the second quarter of fiscal year 2009 improved by 26% to $9,298,000, versus $7,401,000 for the second quarter of fiscal year 2008. Gross profit for the six months was $5,312,000, compared to $4,803,000 for the previous year's six months, an improvement of 11%. Gross profit for the second quarter of fiscal year 2009 increased by 38% to $2,802,000 compared to $2,036,000 for the second quarter fiscal year 2008. Net income for the six months improved by 19% to $905,000, compared to $749,000 during the prior year's six months. Net income for the second quarter of fiscal year 2009 was $562,000, an increase of 338% versus a net income of $126,000 for the second quarter of fiscal year 2008. "Once again, despite the current general economy, the Company posted healthy growth in both top lines sales and bottom line profits during the second quarter and six months," stated Gordon L. Ellis, Chairman of International Absorbents Inc. "We continue with our strategic initiatives to build on our success in the market for high quality animal bedding, expand our market presence and improve our infrastructure such that we can optimize cash flow in the good times and comfortably survive any economic downturn. Our overall objective to increase the value of our shareholder's assets is succeeding and will continue." 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 3 Months 6 Months Ended Jul. 31, Ended Jul. 31, 2008 2007 2008 2007 Sales, net $9,298,000 $7,401,000 $17,759,000 $15,766,000 Gross profit 2,802,000 2,036,000 5,312,000 4,803,000 Net income before taxes 917,000 237,000 1,554,000 1,271,000 Net income 562,000 126,000 905,000 749,000 Basic earnings per share 0.09 0.02 0.14 0.12 Weighted average shares (basic) 6,410,000 6,410,000 6,410,000 6,410,000 As at As at Jul. 31, Jan. 31, 2008 2008 Total assets $29,968,000 $28,589,000 Stockholders' equity 18,814,000 17,689,000 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, capacity to improve profitability, intent to improve production efficiencies and decrease costs, ability to expand and grow its markets and product lines, 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, changes in energy and transportation costs, 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 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-K for the fiscal year ended January 31, 2008 and its quarterly filings on Form 10-Q. 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, Web site: http://www.internationalabsorbents.com/

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