IGR Ig Design Group Plc

RNS Number:6735C
International Greetings PLC
23 August 2007



Trading statement and Announcement of US acquisition

International Greetings plc ("International Greetings"), the designer,
manufacturer and distributor of greetings, stationery and licensed published
products, today announces an update on current trading, future prospects and on
its continuing overseas expansion and acquisition strategy.

Since 2003, International Greetings has pursued a twin strategy of developing
new distribution channels in the UK away from the private label sector and
expanding internationally in order to reduce its historic dependency on the
challenging UK retail market. This strategy has proved to be successful and
International Greetings has become a key player in the global markets in which
it operates.

The recent acquisitions of Anker and Alligator/Pinwheel in the UK, which,
together with our US and European businesses, are performing in line with
expectations, have reduced the proportion of the Group's turnover to the UK
private label sector to approximately a third of total revenues.

However, as has been well documented in recent months, the UK retail climate
remains extremely tough with many large retail groups continuing to put pressure
on suppliers' margins. As a consequence, our projected turnover and profits for
the year to 31 March 2008 are anticipated to be below current market estimates,
with *profit before tax now expected to be in the region of #17m. This is based
on the existing business and does not take into account any benefits of further
acquisitions made during the remainder of this financial year.

With regard to our acquisition strategy, we have recently concluded the purchase
of a 50% shareholding in Halloween Express LLC, a profitable US based seasonal
and internet retail business, where we intend to add value by extending its
product offering beyond Halloween to include our ranges of Christmas
merchandise.

We are also close to finalising two further international acquisitions which
will provide entry into new product and geographical areas. Heads of terms have
been agreed and we will disclose further information on these exciting additions
to the Group as soon as the deals are completed.

Nick Fisher, Joint Chief Executive commented: "Whilst the shorter term outlook
has been clouded by the difficult UK market, we remain confident that the
business strategy we have adopted will provide long term growth and stability,
and create value for our shareholders."


For further information:

Nick Fisher/Mark Collini: 01707 630630
Graeme Cull, Arden Partners plc: 0121 423 8960
Jeremy Carey, Tavistock Communications: 020 7920 3150


* Profit before tax and exceptional items, stated under IFRS, which will be
adopted for the first time in the current year.



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