For immediate release
28 June 2005

International expansion drives record results

International Greetings PLC (“the Company” or “the Group”) (AIM: IGR), the leading designer and manufacturer of private label greetings products, wrapping paper and film and television character based licensed stationery, today announces preliminary results for the year ended 31 March 2005.

Financial Highlights:

• Turnover improved 13% to £143.7m (2004: £126.7m)
• Adjusted profit before tax* increased 14% to £13.8m (2004: £12.1m)
• European turnover grew 69% to £17.6m (2004: £10.4m), aided by a significant contribution from Dutch subsidiary Hoomark
• US sales increased 51% to £35.1m (2004: £23.3m) and now represents 24% (2004: 18%) of Group turnover
• Total overseas sales rose 53% and now comprise 38% (2004: 28%) of Group turnover
• Adjusted earnings per share* increased 18% to 24.5p (2004: 20.7p)
• Final dividend per share of 5.75p, increases the year’s total dividend 15% to 7.5p (2004 total dividend: 6.5p)

Operational Highlights:

• European operations moved to a new 400,000 sq ft facility in Hoogeveen, providing increased capacity for future growth
• Continued expansion of product sourcing and manufacturing in the Far East
• Following the acquisitions of Krakajack and Napier, International Greetings now established as the No. 1 global cracker manufacturer
• Stationery range launched to coincide with the release of Batman Begins

Post Period Events

• Anker International acquired in May 2005 for £35.5m
• Paul Fineman, CEO of Anker International, joined the Group’s board

Commenting on the results, Nick Fisher, Joint Chief Executive, said : "These results clearly reflect the investments we have made in our overseas markets, with significant progress made in Europe since the acquisition of Hoomark, and the US, where the emphasis on developing sales to the mass market has succeeded. We will continue to pursue opportunities to organically grow our business and also make acquisitions which will provide us with new products, new markets and new customers."

* figure excludes goodwill amortisation of £443,000 (2004: £233,000) and exceptional item of £738,000 (2004: £684,000)

ENDS

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