IAMGOLD Reports Record Net Earnings and Operating Cash Flow in the First Quarter 2008

Market Wire, May, 2008

IAMGOLD Corporation (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) -

For a full explanation of results, the unaudited interim Consolidated Financial Statements, Management Discussion & Analysis, and mine statistics, please see the Company's website, www.iamgold.com .

"We are very pleased with the record revenue, net earnings and cash flow reported during the quarter. These results clearly demonstrate that IAMGOLD provides superior earnings and cash flow leverage to gold. We continued to bolster our financial position through cost improvements, divestitures of non-core assets and obtaining a debt facility. This financial strength means we have almost $0.5 billion in cash available to expand our production and resource base beyond our existing portfolio and is a step towards achieving our long term growth objective of doubling production within five years," stated Joseph Conway, President & CEO.

All amounts are expressed in US dollars, unless otherwise indicated.

HIGHLIGHTS:

- Net earnings increased by 205% to $34.4 million or $0.12 per share in the first quarter of 2008 compared to $11.3 million or $0.04 per share in the prior year period.

- Record operating cash flow of $72.7 million in the first quarter of 2008, an increase of 337% compared to $16.7 million in the prior year period. Operating cash flow at Niobec increased by 48% to $13.6 million in the first quarter of 2008, compared to $9.2 million in the prior year period.

- Gold production in the first quarter of 2008 was 234,000 ounces at an average cash cost (2) of $476 per ounce compared to 219,000 ounces at an average cash cost of $416 per ounce in the prior year period.

- Mining costs increased by $12.5 million compared to the prior year period. Increased royalty costs due to a higher gold price and the weaker US Dollar accounted for most of the increased costs, while the impact of rising fuel prices was mitigated by operating efficiencies.

- Exploration and development spending of $16.7 million during the first quarter of 2008.

- Strong cash and gold bullion position of $282.9 million (valuing gold bullion at market), provide the Company with significant financial flexibility for achieving its long term growth objectives of doubling production within the next five years.

Accomplishments:

- $140 million five year revolving credit facility was obtained in April 2008 increasing the Company's financial capacity.

- An agreement to sell the La Arena project located in Northern Peru to Rio Alto Mining Limited ("Rio Alto") for a consideration of $47.6 million in cash and a 5.5% interest in Rio Alto was signed by the Company in May 2008. Rio Alto is required to obtain funding to complete the transaction. In addition, the Quebec Lithium property was sold to Black Pearl Minerals Consolidated Inc. for $1.2 million.

- Significant progress was made on the 3.3 million ounce advanced exploration Westwood project in the Abitibi region of Northern Quebec. In May 2008, the Company announced positive results of its exploration program and its intentions to accelerate this key project to achieve its growth objectives.

- Two collective agreements were successfully negotiated and ratified by the Company in May 2008 at Niobec. This was the seventh successful negotiation with its unions worldwide since the Company assumed the role of operator in late 2006.

- The Company achieved two important safety milestones during the quarter. Sleeping Giant and Yatela have operated two years and one year, respectively, without a lost time injury. Throughout the Company, safety is a priority and eight mines reported no lost time injuries during the first quarter.

"We continue to build on our financial and operating platform. This has resulted in significant achievements at the strategic, operational and tactical levels. The changes we have implemented will develop our core strength in finance, operations, business development, exploration, project development and our people," stated Joseph Conway, President & CEO.

Recent events:

- The Company announced in January 2008 that the permits necessary to commence construction of the Camp Caiman project would not be granted despite the fact that the Company fulfilled all of the technical, environmental and legal obligations required. The Company is proposing alternative development programs which are being considered by the French government in addition to the preparation of other remedies. All existing exploration permits remain in effect.

- In Ecuador, a mandate passed by the Constituent Assembly in April 2008 resulted in a moratorium on mining activities in the country for 180 days pending the completion of new mining legislation. The President of Ecuador has undertaken to engage in discussions with the Company, over the next several months, regarding terms and conditions for a mining concession at Quimsacocha. The Company will advance the work necessary to complete the Quimsacocha prefeasibility study scheduled for July 2008. As well, during the moratorium, technical, environmental and economic assessments, together with community and public relations programs will continue. If the Company is unable to reach agreement on a revised mining concession, there may be an adverse impact on existing rights and interests, the impact of which is difficult to assess at this time. Based on information currently available, the Company believes there is insufficient evidence to cause the Company to record an impairment. The Company will continue to monitor the situation.