Intertape Polymer Group Inc. Announces March 31,1999 1st Quarter Results

Business Wire, May 13, 1999

MONTREAL--(BUSINESS WIRE)--May 13, 1999--

INTERTAPE POLYMER(TSE:ITP.) (AMEX:ITP)

(stated in US dollars - see paragraph 2)

(reported using Cdn GAAP other than noted)

Intertape Polymer Group Inc. today reported its financial results for the first quarter ended March 31, 1999.

Andrew M. Archibald, C.A., Chief Financial Officer, stated: "As a result of the recent series of acquisitions which started with that of American Tape Co. in late 1997, Intertape Polymer Group (IPG) has derived more than 89 percent of its first quarter revenue in US dollars. In addition, all of these acquisitions have taken place in the USA and the related debt financing has been placed entirely in US dollars. Consequently, commencing with this 1st Quarterly Report of 1999, IPG has decided to report all public filings in US dollars".

Sales in the period were US$121.5 million up from US$80.4 million in 1998, representing an increase of US$41.1 million or 51.1 percent. "The increases that were achieved during the first quarter, were derived from a strong combination of both internal growth, as well as from the recent acquisitions", stated Melbourne F. Yull, Chairman and Chief Executive Officer.

Gross margins for the 1st quarter of 1999 were 28.7 percent, which is an increase from 28.3 percent for the same period last year. Mr. Yull also noted: "Resin costs seem to have bottomed out this quarter; and historically, margins tend to increase when raw material costs are either stable or increasing."

Net income under both US and Canadian GAAP for the three month period ended March 31, 1999 increased 28.1 percent or US$1.8 million to US$8.2 million from US$6.4 million in the same period last year.

Under both US and Canadian GAAP, earnings per share increased to US$0.32 as compared to US$0.26 for the quarter ended March 1998. On a fully diluted basis, earnings per share was US$0.30 under both US and Canadian GAAP. In Canadian dollars, primary and fully diluted earnings per share were Cdn$0.48 and Cdn$0.45 respectively.

The exchange rate at March 31, 1999 was Cdn. $1.5158 = U.S. $1.00.

On April 21, 1999, Intertape Polymer Group filed a Notification and Report Form with the Federal Trade Commission and the U.S. Department of Justice, regarding the previously announced proposed acquisition of the stock and certain assets of the subsidiary companies of Spinnaker Industries Inc.

Intertape's shares are traded on both the Toronto Stock Exchange and the American Stock Exchange under the symbol "ITP".

Intertape Polymer Group Inc. develops and manufactures a variety of specialized polyolefin plastic and paper based products and packaging systems for industrial use. The Company is based in Montreal, Quebec with manufacturing facilities in fifteen North American and one European location.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last twelve months, copies of which are available from the SEC or may be obtained upon request from the Company. -0-

                      INTERTAPE POLYMER GROUP INC
                 Summary Consolidated Financial Data
                            Using Canadian
               Generally Accepted Accounting Principles
       (in thousands of U.S. dollars, except per share amounts
                     and no. of shares outstanding)


                                       3 Months March 31
                                       1999        1998
------------------------------------------------------------

Sales                               121,471      80,367

Cost of sales                        86,593      57,593
------------------------------------------------------------

Gross profit                         34,878      22,774
------------------------------------------------------------

Selling, general and
 administrative expenses             16,098      10,072
Amortization of goodwill              1,224         727
Research and development                813         742
Financial expenses                    5,249       2,223
------------------------------------------------------------
                                     23,384      13,764
------------------------------------------------------------

Earnings before taxes                11,494       9,010

Income taxes                          3,333       2,594
------------------------------------------------------------

Net earnings for the period           8,161       6,416

Earnings per share
Cdn GAAP - US$                        $0.32       $0.26
Cdn GAAP - Fully diluted - US$        $0.30       $0.25
U.S. GAAP - US$                       $0.32       $0.26
U.S. GAAP - Fully diluted - US$       $0.30       $0.25

Cdn GAAP - CDN$                       $0.48       $0.39
Cdn GAAP - Fully diluted - CDN$       $0.45       $0.38

Weighted average shares outstanding
Cdn GAAP                         25,836,000  25,035,000
Cdn GAAP - Fully diluted         28,167,000  27,042,000
U.S. GAAP                        25,836,000  25,035,000
U.S. GAAP - Fully diluted        26,769,000  26,115,000