Intertape Polymer Group's Third Quarter Results Reflect Progress

Intertape Polymer Group Inc. (TSX: ITP)(NYSE: ITP) ("Intertape" or the "Company") today released results for the third quarter and nine months ended September 30, 2007. All dollar amounts are US denominated unless otherwise indicated.

"Intertape's third quarter showed improvement in all key areas. The most important measurement management uses to evaluate performance is Adjusted EBITDA. We continue to progress with our third quarter Adjusted EBITDA of $20.6 million, an improvement of $8.9 million over the previous year and $2.2 million or 12% over the second quarter of this year. During the quarter we also completed a Rights Offering and reduced our long-term debt by $60.0 million. Debt reduction is one of the Board's focuses as a means to increase value to our shareholders," stated Melbourne F. Yull, Executive Director.

A reconciliation of the Company's Adjusted EBITDA, a non-GAAP financial measure, to GAAP net earnings, is set out in the EBITDA and Adjusted EBITDA reconciliation table in the section entitled "EBITDA".

Operating results

Net earnings for the third quarter of 2007 were $1.0 million or $0.02 per share, both basic and diluted, compared to a loss of $123.3 million or $3.01 per share, both basic and diluted, for the third quarter of 2006. Net loss for the nine months ended September 30, 2007 totaled $7.7 million or $0.19 per share, both basic and diluted, compared to a net loss of $151.5 million or $3.70 per share, both basic and diluted, for the same period in 2006.

Excluding accelerated amortization of debt issue expenses, manufacturing facility closures, strategic alternatives and other charges and impairment of goodwill (all net of related taxes) adjusted net earnings for the third quarter resulted in a profit of $2.7 million or $0.07 per share, both basic and diluted, and a year-to-date adjusted net loss of $0.7 million or $0.02 per share, both basic and diluted.

Adjusted net earnings is a non-GAAP financial measure that the Company is including because management believes it provides a better comparison of results for the periods presented since it does not take into account non-recurring items and manufacturing facility closures costs in each period. Adjusted net earnings does not have any standardized meaning prescribed by GAAP in Canada or the United States and is therefore unlikely to be comparable to similar measures presented by other issuers. A reconciliation of the Company's adjusted net earnings to net earnings is set out later in this press release.

During the third quarter of 2007, Intertape recorded manufacturing facility closures, strategic alternatives and other charges of $1.3 million, substantially all of which was related to the recently concluded strategic alternatives process. This compares to the $16.0 million in such charges during the third quarter a year ago.

Sales

Intertape's sales increased for the second consecutive quarter, after three consecutive quarters of decline. Sales for the third quarter were $201.9 million, a 7.9% improvement over this year's second quarter sales of $187.1 million. This includes a 3.6% increase in sales volume with the balance of the increase attributable to selling price increases and product mix. A portion of this sequential sales volume improvement is the result of new engineered coated products commercialized this year and which have recently been introduced into new markets. This volume growth was realized despite the fact that the Company is not yet experiencing increased sales volumes related to the overall demand for products in its largest end use market, residential construction. The Company's year-over-year sales grew 3.5% from the $195.1 million recorded in the third quarter of 2006. This improvement includes a 1.8% increase in sales volume with the balance of the increase due to selling price increases and product mix.

Sales for the first nine months of 2007 were $575.8 million compared to $624.9 million for the same period in 2006, a decrease of 7.9% . This result includes a 7.1% decline in sales volume with the balance of the decline due to selling price decreases. The year-to-date sales volume decline compared to the first nine months of 2006 is the result of a decline in commercial activity within key markets of the Company's engineered coated products, including the residential construction market, a decline in the sale of North American tape products and consumer customer account rationalization as well the previous uncertainties surrounding the Company.

Gross profit

Gross profit for the third quarter totaled $30.8 million at a gross margin of 15.3%, as compared to gross profit of $25.7 million for the third quarter of 2006 at a gross margin of 13.2% . The margin improvement in 2007 is due to improved year-over-year sales volumes and lower manufacturing expenses. Gross margins for the third quarter of 2007 improved slightly from second quarter gross margins of 15.2%.

The gross profit and gross margin for the nine months of 2007 were $86.6 million and 15.0% respectively, compared to $94.8 million and 15.2% for the nine months of 2006.