Intertape Polymer Group Reports First Quarter 2008 Results

Intertape Polymer Group Inc. (TSX: ITP)(NYSE: ITP) ("Intertape" or the "Company") today released results for the first quarter ended March 31, 2008. All dollar amounts are US denominated unless otherwise indicated.

"We are pleased with the results of the first quarter. We achieved year-over-year increases in both gross margins and EBITDA. Intertape's ability to obtain higher selling prices, and thus offset raw material cost increases, as well as a refocus on high-margin products, helped the Company's performance despite the overall weakened economic situation in the U.S.

"This is most evident in the Engineered Coated Products ("ECP") Division, where EBITDA almost doubled from the previous year, despite the continuing slowdown in the residential construction sector.

"A further highlight of the first quarter was the completion of new financing arrangements. Among the advantages the Company expects are the elimination of all but one financial covenant and a significant reduction in interest expense in 2008 compared to 2007. This places the Company on a very solid footing," stated Melbourne F. Yull, Intertape's Executive Director.

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

Earnings

Adjusted net earnings for the first quarter of 2008 were $1.9 million or $0.03 per share, both basic and diluted, compared to $0.9 million or $0.02 per share both basic and diluted for the same period last year.

Non-recurring items in the first quarter were related to the refinancing of the existing Senior Secured Credit Facility and included both the noncash write-off of debt issue expenses of $3.1 million and the settlement of the interest rate swap agreements at a cost of $2.9 million. Adjusted net earnings are defined by the Company as net earnings (loss) excluding refinancing costs and manufacturing facility closures, restructuring, strategic alternatives and other charges (net of tax).

A reconciliation of the Company's adjusted net earnings, a non-GAAP financial measure, to GAAP net earnings, is set out below in the adjusted net earnings reconciliation table in the section entitled "Non-GAAP Information".

The net loss for the first quarter was $1.9 million or $0.03 per share, both basic and diluted, compared to a net loss of $0.6 million or $0.01 per share, both basic and diluted, for the first quarter of 2007.

Sales

First quarter sales were $184.5 million, down slightly from sales of $186.8 million in the first quarter of 2007 due to the continuing economic weakness in the United States. Intertape was able to raise prices during the quarter to offset certain raw material cost increases, most significantly resin plastic based raw material.

Gross profit and gross margin

Gross profit for the first quarter totaled $27.6 million, basically even with the gross profit of $27.5 million a year ago. First quarter gross margin increased to 15.0% from 14.7% in the first quarter of 2007.

SG&A expenses

Selling, general and administrative ("SG&A") expenses were $17.6 million for the first quarter of 2008 (9.6% of sales), compared to $18.3 million for the first quarter of 2007 (9.8% of sales).

EBITDA

First quarter EBITDA and adjusted EBITDA were both $17.0 million compared to EBITDA of $14.0 million and adjusted EBITDA of $16.4 million for the first quarter in 2007.

Segmented Information

Tapes & Films ("T&F") Division

Sales for the T&F Division for the first quarter totalled $148.7 million, a 1.6% decrease compared to $151.1 million for the first quarter of 2007. Sales volumes (units) decreased 7.1% compared to the first quarter of 2007. The volume decline was largely offset by selling price increases.

First quarter gross profits for the Division totalled $23.3 million at a gross margin of 15.7% compared to $24.2 million at a gross margin of 16.0% for the first quarter of 2007.

EBITDA was $15.6 million compared to $16.4 million for the comparable period a year ago.

Tapes and Films Division EBITDA Reconciliation to Net Earnings

(in millions of US dollars)

For the periods ended,            Three months ended   Three months ended
                                       Mar. 31, 2008        Mar. 31, 2007
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                                                   $                    $
Divisional earnings before
 income taxes                                    8.4                  9.0
Depreciation and amortization                    7.2                  7.4
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EBITDA                                          15.6                 16.4
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EBITDA margin                                   10.5%                10.9%
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