FERNDALE, Wash., June 12 /PRNewswire-FirstCall/ -- International Absorbents Inc. (NYSE:IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the first quarter ended April 30, 2009. Sales for the first quarter of fiscal year 2010 were $8,480,000 versus $8,461,000 for the first quarter of fiscal year 2009. Gross profit for the first quarter of fiscal year 2010 was $3,116,000 compared to $2,510,000 for the comparable quarter in fiscal year 2009, an increase of 24%. Net income for the first quarter of fiscal year 2010 was $516,000, an improvement of 50% versus a net income of $343,000 for in the first quarter of fiscal year 2009. Gordon L. Ellis, Chairman of International Absorbents Inc. commented on the quarter, "The key driver of net income growth was improved gross margins. These were achieved through continued efficiencies thanks to the hard work of all our employees combined with reduced raw materials and energy costs. We expect to face ongoing pressures on these margins throughout the year from, among other things, potential increases in raw materials, utility and transportation costs. While sales were flat year-over-year for the first quarter on lower product volumes, we continue to be creative in the development of new revenue streams. Accordingly, we are introducing a line of small animal foods to capitalize on the success of the CareFRESH(R) brand name. The new product, called CareFRESH(R) Complete(TM), will be on store shelves during the second quarter." 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 Ended Apr. 30, 2009 2008 ---- ---- Sales, net $8,480,000 $8,461,000 Gross profit 3,116,000 2,510,000 Net income before taxes 847,000 637,000 Net income 516,000 343,000 Basic earnings per share 0.08 0.05 Weighted average shares (basic) 6,410,000 6,410,000 As at Apr. 30, As at Jan. 31, 2009 2009 ---- ---- Total assets $31,863,000 $31,281,000 Stockholders' equity 21,021,000 20,386,000 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., 1-866-514-6559, or 604-681-6181, Web Site: http://www.internationalabsorbents.com/

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