For immediate release
9 July 2002

Excellent progress made in US Division

Licence for second Harry Potter film agreed with Warner Bros

Financial position remains strong, final dividend maintained

International Greetings PLC, one of the world's leading designers and manufacturers of greeting products and licensed stationery, today reported results for the year ended 31 March 2002, showing an encouraging 16% increase in turnover.

Highlights for the period included:

• Turnover up 16% at £111m (2001: £95m)
• Profit before tax, exceptional item and goodwill amortisation £9.1m (2001 : £10.7m)
• Profit before tax and exceptional item £8.9m (2001 : £10.5m)
• Final dividend per share held at 3.3p, making a dividend for the full year of 4.5p (2001 : 4.5p)
• Acquisition of new distribution centre
• Problems highlighted at interims in UK gift wrap business are under control and the changes implemented have lead to encouraging progress
• US business performing well and now accounts for 26% of group revenue
• Terms agreed with Warner Bros for second Harry Potter film, "The Chamber of Secrets" due for release in November

Nick Fisher, Joint Chief Executive, said:

"We announced at the interim stage that we have experienced problems in our UK gift wrap business. We have undertaken a thorough review and have implemented changes to the operation. Anders Hedlund has resumed day to day responsibility and we are encouraged by the progress made.

"We are pleased by the performance of the remaining divisions, all of which have reported increases in profitability. In particular, our US division has made excellent progress this year.

"We continue to invest in design and licensing to ensure our continued competitive advantage and have been awarded European Best Design Licensee of the Year for our ranges of Barbie stationery. We are also delighted to be working once again with Warner Bros. to design ranges of our products to support the new Harry Potter film release for the coming Christmas season.

"Although this year has been challenging, our business model remains robust for future growth and we are totally committed to ensuring our businesses deliver to their maximum potential."

ENDS

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