FERNDALE, Wash., April 29 /PRNewswire-FirstCall/ -- International Absorbents Inc. (NYSE Euronext: IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the fiscal year ended January 31, 2009. Net income for fiscal year 2009 improved 11% to $2,239,000, or $0.35 per share, versus $2,016,000, or $0.31 per share, for fiscal year 2008. Sales increased 8% to $35,752,000 for fiscal year 2009, compared to $33,095,000 for fiscal year 2008. Gross profit for fiscal year 2009 was $11,482,000 compared to $9,956,000 for fiscal year 2008. Gordon L. Ellis, Chairman of International Absorbents Inc. commented on the Company's financial results, "The economic downturn is having its effect on us as sales slowed in the latter part of the year resulting in overall growth of 8 percent, the first time in many years that we have had less than double digit growth. As companies worldwide tighten up their inventories our customers have been doing the same such that sales continue to slow as we move into the new year. To counter this, we continue to focus on becoming a more cost-effective manufacturer through both increased efficiencies and innovative cost saving initiatives. Success in these areas are reflected in the results for fiscal year 2009 including improved margins and a 11 percent increase in net profit. Consistent with our long term strategy we are pushing into both new market channels and geographies. Additionally, our objective is to take advantage of this downturn to give our customers value for their money and thereby secure as much market share as possible. With two modern manufacturing facilities and increased efficiencies we have significant excess capacity to support future growth, and our strong balance sheet can weather short term sales disruptions. These are interesting economic times and we look forward to coming out of this recession a stronger, more profitable organization." 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 Year Ended January 31, 2009 2009 2008 Sales, net $35,752,000 33,095,000 Gross profit 11,482,000 9,956,000 Net income before taxes 3,654,000 3,270,000 Net income 2,239,000 2,016,000 Basic earnings per share 0.35 0.31 Weighted average shares (basic) 6,410,000 6,410,000 Total assets $31,281,000 $28,589,000 Stockholders' equity 20,386,000 17,689,000 Net Cash Flows from operating activities 3,644,000 3,571,000 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 potential impact on the Company of the recession; the Company's ability to reduce costs, increase efficiencies, enter into new markets, introduce new products, gain market share, improve profitability and execute on its future growth strategies; potential financial results; the capacity of the Company's manufacturing facilities; forecasted 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, the effect on the Company of the ongoing global economic downturn, any potential decrease or change in consumer spending, the potential impact on the Company of any increases in energy and transportation costs; the performance of the Company's manufacturing facilities, competitor reactions and their ability to market and price their products, and the 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, 2009 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., Toll Free, 866-514-6559, or +1-604-681-6181, Web Site: http://www.internationalabsorbents.com/

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