Montréal, Québec and Bradenton, Florida – March 11, 2005 – Intertape Polymer Group Inc. (NYSE, TSX: ITP) today released results for the fourth quarter and year ended December 31, 2004. “Our sales growth for the fourth quarter was particularly strong, and we exceeded our revenue growth target of 10% for the year,” said Intertape Polymer Group Inc. (IPG) Chairman and Chief Executive Officer, Melbourne F. Yull. “We made progress in recovering raw material cost increases through price increases to our customers. Additionally, during the fourth quarter we announced the closure of two facilities, which should have a positive effect on our cost structure going forward. Improvements in our financial and selling, general and administrative cost structures also helped to offset the pressure of raw material cost increases, resulting in a 16.9% increase in our adjusted pretax earnings compared to the same period last year. Net income was up even more significantly, mainly driven by an adjustment for income taxes recoverable in future periods.”

Operating Resuts
Sales for the fourth quarter were $180.7 million, up 14.6% compared to the corresponding quarter last year. The increase was due to unit growth, price increases, and acquisition-related revenues. Sales for the year were $692.4 million, up 11.4% compared to 2003.

Gross margin for the fourth quarter was 19.9% compared to 22.0% for the same quarter last year. The Company was successful in achieving sales price increases during the fourth quarter of 2004. Raw material cost increases contributed to the decline in the gross margin.  Nonetheless, gross profit increased by 3.9% compared to the same period in 2003. Gross margin for the year decreased to 20.7% from 22.4% in the prior year.

Selling, general and administrative (“SG&A”) expenses were $25.8 million in the fourth quarter of 2004, compared to $24.8 million for the fourth quarter of 2003. The increase relates to higher sales within the retail distribution channel, which carries a more expensive selling structure than other sales channels. “While SG&A expenses increased slightly compared to the same period last year, as a percent of sales, they were down from 15.8% in 2003 to 14.3% in 2004,” said IPG’s Chief Financial Officer, Andrew M. Archibald, C.A. SG&A expenses were $94.2 million, or 13.6% of sales, for the year, compared to $89.9 million, or 14.5% of sales, for 2003.

Financial expenses in the fourth quarter were $4.3 million, a 23.0% decrease compared to $5.6 million for the fourth quarter last year. “The reduction in financial expenses is the result of the various debt restructuring activities over the past year,” commented Mr. Archibald. “Assuming interest rates and our outstanding debt remain constant, we would expect financial expenses for 2005 to be in the range of $17.0 million to $18.0 million.” Financial expenses for the year were $24.3 million, excluding the $30.4 million cost of refinancing, compared to $28.5 million for last year. The lower financial expenses for the year were also partly the result of a substantial debt repayment at the end of the third quarter of 2003, which was accomplished with the proceeds of the $40.8 million common stock issuance in late September 2003.

The Company is including adjusted pretax earnings, a non-GAAP financial measure, in this discussion of results because it believes the measure permits more meaningful comparisons of its performance between the periods presented. See the table below for a reconciliation of adjusted pretax earnings to net earnings. Adjusted pretax earnings were $4.6 million for the quarter, up 16.9% from $3.9 million for the same quarter last year. Adjusted pretax earnings were $19.4 million for the year, compared to adjusted pretax earnings of $17.1 million for the previous year.

Reconciliation of Net Earnings to Adjusted Pretax Earnings

Periods ended December 31, (in millions of US dollars)
	Three months				Twelve months
	2004		2003		2004		2003
	$		$		$		$
Net earnings – As reported	17.7		5.2		11.4		18.2
Add back:
Income taxes (recovery)	(20.5)		(4.3)		(29.7)		(4.1)
Pretax earnings	(2.8)		0.9		(18.4)		14.1
Add back:
Refinancing expense	-		-		30.4		-
Manufacturing facility closure costs	7.4		3.0		7.4		3.0
Adjusted pretax earnings	4.6		3.9		19.4		17.1

 For the fourth quarter, the Company recorded an income tax recovery of $20.5 million, of which $19.0 million was due to a reduction in the Company’s valuation allowance for future income tax benefits. This adjustment was a result of the Company’s periodic assessment of its ability to realize future income tax assets. For the same period in 2003, the Company booked an income tax recovery of $4.2 million. For the year, the Company recorded an income tax recovery of $29.7 million, compared to an income tax recovery of $4.1 million for the year 2003, reflecting primarily the impact of the valuation allowance adjustment in the fourth quarter of 2004 and the tax effect of the $30.4 million of refinancing expenses incurred in the third quarter of 2004. For 2005, the Company expects its effective tax rate to be in the range of 20.0% to 23.0% and cash taxes to be less than $2.0 million for the year.

Net earnings for the fourth quarter of 2004 were $17.7 million, or $0.43 per share (basic and diluted), compared to net earnings of $5.2 million or $0.13 per share (basic and diluted) for the fourth quarter of 2003. Net earnings were $11.4 million for the year, or $0.27 per share (diluted), compared to net income of $18.2 million, or $0.50 per share (diluted), for the year 2003.

The Company is including earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, non-GAAP financial measures, in this discussion of results because it believes these measures permit more meaningful comparisons of its performance between the periods presented. In addition, the Company’s covenants contained in the loan agreement with its lenders require certain debt to Adjusted EBITDA ratios be maintained, thus EBITDA and Adjusted EBITDA are used by management and the Company’s lenders in evaluating the Company’s performance. A reconciliation of the Company’s EBITDA and Adjusted EBITDA, non-GAAP financial measures, to GAAP net earnings (loss) is set out in the EBITDA and Adjusted EBITDA reconciliation table below. The Company’s EBITDA for the fourth quarter of 2004 was  $9.1 million compared to $13.9 million for the fourth quarter of 2003. The adjusted EBITDA was $16.5 million in the fourth quarter of 2004 as compared to $16.9 million in the fourth quarter of 2003. EBITDA was $65.0 million for 2004 compared to $70.2 million for 2003.  The adjusted EBITDA was $72.4 million for 2004 compared to $73.2 million in 2003.

EBITDA and Adjusted EBITDA Reconciliation to Net Earnings