Interim Results

Immediate release                                      8 December 2003



First Half Profits Increase by 24*% at International Greetings
Company confident for full year
Dividend up 15%


International Greetings plc, the leading designer and manufacturer of private
label greetings products and licensed stationery, today announced interim
results for the six months ended 30 September 2003.

Highlights

·    Turnover up 9% to £53.5m (2002: £49.0m)
·    Pre- tax profits up 24% to £ 5.3*m (2002: £4.3m)
·    Earnings per share up 24% at 8.8p* (2002: 7.1p)
·    Acquisition of Hoomark leads development into continental Europe
·    Licenced Christmas decorations business established
·    Company optimistic for full year
·    Interim dividend up 15% at 1.5p (2002:1.3p)

*  Excluding  exceptional item of £684,000 for costs relating to start up of
licenced Christmas decorations business


Nick Fisher, Joint Chief Executive commented: "In the first half we have seen  a
strong underlying performance from our core business and the  trading  outlook
remains good. We are optimistic about the full year.

"The  Hoomark  acquisition provides us with a strong  platform to develop the
continental European  market,  where  we  see  substantial  potential.  We  are
delighted  to  have further strengthened our relationship with Disney  with  the
acquisition of its pan-European licence  for character Christmas decorations. We
are excited by both these developments."

                                     -Ends-


For further information, please contact:

International Greetings
Nick Fisher, Joint Chief Executive           Tel: [phone]

Edelman Financial
Michael Henman                     Tel: [phone]
James Horsman                      Tel: [phone]




Chairman's Statement


I am delighted to report an excellent set of interim results for the six months
to 30th September 2003.  Turnover for the period has increased by 9% to £53.5m.
Improvements in operating efficiency and continuing strong cash management  have
resulted  in an increase in operating profit* of 14% to £5.4m.   Profit  before
taxation*  and earnings per share* both increased by  24%  to  £5.3m  and  8.8p
respectively.

I am pleased to announce the recent introduction of a new product category into
our portfolio, licensed Christmas decorations.  As a result of the strength  of
our relationship with Disney  Consumer  Products,  an  opportunity  arose  in
September to  acquire a  Pan-European  licence  for  this  product  category,
previously held by a licensee which had gone into liquidation.  The exceptional
item  of  £684,000  represents the one-off costs associated with  obtaining  the
licence  and personnel related costs incurred in establishing the business.   We
expect  this division to have a minimal impact on our results for the full  year
to  31st  March  2004,  but are confident that this new  product  category  will
deliver both turnover and profit growth next year.

We  recently announced the acquisition of Hoomark Gift-Wrap Partners BV, a  gift
wrap  manufacturer based in Holland.  This deal represents a major step  forward
in  our strategic development into mainland Europe, and provides the opportunity
to  supply  not  only gift wrap, but all of the Group's product categories  into
this  important  marketplace.    Due  to the seasonality  of  the  business,  we
anticipate that Hoomark will make a small loss for the period from the  date  of
acquisition  (20th November 2003) to 31st March 2004, but will make  a  positive
contribution to Group profits in future years.

Licensed  merchandise continues to represent an important part of our  business,
and  during  the  period the results from sales of the new  film  releases,  the
Incredible  Hulk  and  Disney's Finding Nemo, have met our  expectations.   With
continuing  promotional activity and video releases leading into  the  Christmas
period,  we  expect consumer demand for licensed product to continue during  the
second half of our financial year.

Due  to the seasonality of our business, we are now actively engaged in planning
customers'  ranges  and  developing  new designs  and  products  which  will  be
delivered  during  the  next financial year.  With the  additions  of  both  the
Hoomark and Christmas decorations divisions, and the continuing strength of  our
existing  businesses,  we  expect  an  exciting  year  ahead  for  International
Greetings.






At this time of year, having completed the majority of our Christmas deliveries,
we  are  encouraged by the trading forecasts for our products by our  customers,
and  are  optimistic about our full year's performance. Your Board is  therefore
proposing a dividend of 1.5p per share, an increase of 15% over last year.   The
dividend will be paid on 15 January 2004 to all shareholders on the register  on
19 December 2003.

John Elfed Jones CBE DL
Chairman
8 December 2003

* excluding exceptional item of £684,000



International Greetings PLC
Consolidated profit and loss account
for the 6 months to 30th September 2003

                               Unaudited                 Unaudited               Audited
                               6 months to               6 months to           12 months to
                               30th September 2003       30th September 2002   31st March 2003
                      Note     £000                      £000                  £000

Turnover                       53,471                    48,950                113,732
_______________________________________________________________________________________

Operating profit before
exceptional item                5,444                     4,790                 11,621
Exceptional item      2          (684)                        -                      -
_______________________________________________________________________________________

Operating profit                4,760                    4,790                  11,621
Net interest payable             (154)                    (531)                   (690)
_______________________________________________________________________________________

Profit before taxation          4,606                    4,259                  10,931
Taxation              4        (1,403)                  (1,330)                 (3,299)
_______________________________________________________________________________________

Profit after taxation           3,203                    2,929                   7,632
Dividend proposed                (662)                    (535)                 (2,385)
_______________________________________________________________________________________


Retained profit                 2,541                    2,394                   5,247
_______________________________________________________________________________________

Earnings per share    3
Basic                            7.7p                     7.1p                   18.5p
Excluding exceptional item       8.8p                     7.1p                   18.5p
Diluted                          7.6p                     7.0p                   18.3p

Dividend per ordinary share      1.5p                     1.3p                   5.75p
______________________________________________________________________________________


Statement of recognised gains and losses
for the six months to 30 September 2003

                                     Unaudited           Unaudited              Audited
                                     6 months to         6 months to            12 months to
                                     30th September 2003 30th September 2002    31st March 2003
                                     £000                £000                   £000

Profit for the period                3,203               2,929                  7,632
Currency translation differences
arising on foreign currency net
investments                           (243)               (534)                  (602)
______________________________________________________________________________________
Total recognised gains and losses
related to the period                2,960               2,395                  7,030
______________________________________________________________________________________




International Greetings PLC
Consolidated balance sheet
at 30th September 2003
                                     Unaudited               Unaudited               Audited
                                     30th September 2003     30th September 2002     31st March 2003

                             Note    £000                    £000                    £000
Fixed assets
Intangible assets - goodwill          978                     1,161                   1,071
Tangible assets                    21,856                    22,176                  21,721
_____________________________________________________________________________________________
                                   22,834                    23,337                  22,792


Current assets
Stocks                             36,629                   36,038                   21,860
Debtors                            44,059                   43,073                    9,856
Cash at bank and in hand                1                       18                   10,547
_____________________________________________________________________________________________
                                   80,689                   79,129                   42,263


Creditors: amounts falling due
              within one year     (56,172)                 (59,599)                 (21,438)
_____________________________________________________________________________________________

Net current assets                 24,517                   19,530                   20,825
_____________________________________________________________________________________________


Total assets less current
liabilities                        47,351                   42,867                   43,617

Creditors: amounts falling due
    after more than one year       (3,315)                  (3,935)                  (2,278)

Provisions for liabilities
and charges                          (382)                    (800)                    (394)
Deferred income                    (2,824)                  (3,280)                  (3,016)
_____________________________________________________________________________________________
Net assets                         40,830                   34,852                   37,929
_____________________________________________________________________________________________

Capital and reserves
Called up share capital             2,109                    2,056                    2,077
Share premium account               1,652                      809                    1,081
Other reserves                        773                    1,085                    1,016
Profit and loss account            36,296                   30,902                   33,755
_____________________________________________________________________________________________
Equity shareholders'
funds                       5      40,830                   34,852                   37,929
_____________________________________________________________________________________________





International Greetings PLC
Consolidated cash flow statement
for the six months to
30th September 2003                  Unaudited               Unaudited               Audited
                                     6 months to             6 months to             12 months to
                                     30th September 2003     30th September 2002     31st March 2003
                        Note         £000                    £000                    £000

Net cash (outflow)/inflow
from operating activities  6         (27,105)                (21,194)                 22,510
Returns on investments
and servicing of finance   7            (151)                   (563)                   (707)
Taxation                              (1,165)                 (1,068)                 (2,980)
Capital expenditure        7          (2,221)                  1,607                     752
Equity dividends paid                 (1,878)                 (1,357)                 (1,892)
______________________________________________________________________________________________
Cash (outflow)/ inflow
before financing                     (32,520)                (22,575)                 17,683
Financing                  7           4,977                     534                  (1,553)
______________________________________________________________________________________________
(Decrease)/increase in cash          (27,543)                (22,041)                 16,130
______________________________________________________________________________________________




Reconciliation of net cash flow to movement in net (debt)/funds
for the six months to 30th September 2003

                                    Unaudited               Unaudited               Audited
                                    6 months to             6 months to             12 months to
                                    30th September 2003     30th September 2002     31st March 2003
                                    £000                    £000                    £000

(Decrease)/increase in cash
in the period                       (27,543)                (22,041)                 16,130
Cash (inflow)/outflow from debt
and lease financing                  (4,374)                   (502)                  1,877
______________________________________________________________________________________________
Change in net debt resulting
from cash flows                     (31,917)                (22,543)                 18,007
Inception of finance leases             -                       -                      (695)
Translation differences                 327                     912                   1,028
______________________________________________________________________________________________
Movement in net debt in the period  (31,590)                (21,631)                 18,340
Net funds/(debt) at beginning
of period                             3,433                 (14,907)                (14,907)
______________________________________________________________________________________________
Net (debt)/funds at end of period   (28,157)                (36,538)                  3,433
______________________________________________________________________________________________




Notes:
1         Basis of preparation

The  interim  statement has been prepared under the same accounting policies  as
those used for the financial statements for the year ended 31st March 2003.

The  figures for the year ended 31st March 2003 are an abridged version  of  the
published  accounts  which have been reported on without  qualification  by  the
auditors,  and  without  any statement under Section  237  (2)  or  (3)  of  the
Companies Act 1985, and have been delivered to the Registrar of Companies.

2         Exceptional item

During  the six months to 30th September 2003, the group has established  a  new
business  division  involved  in the design and selling  of  licensed  Christmas
decorations.  The exceptional item of £684,000 (6 months to 30th September 2002:
£nil,  12 months to 31st March 2003: £nil) represents the one-off start-up costs
associated with this business.

3          Earnings per share
                                  Unaudited              Unaudited              Audited
                                  6 months to            6 months to            12 months to
                                  30th September 2003    30th September 2002    31st March 2003
Earnings per share excluding
exceptional item                       8.8p                   7.1p                   18.5p
Loss per share on exceptional item    (1.1p)                    -                       -
______________________________________________________________________________________________
Basic earnings per share               7.7p                   7.1p                   18.5p
______________________________________________________________________________________________

Diluted earnings per share             7.6p                   7.0p                   18.3p
______________________________________________________________________________________________

The calculation of basic earnings per share is based on 41,788,924 (6 months to
30th  September  2002:  41,117,257, 12 months to 31st  March  2003:  41,229,758)
ordinary  shares being the average number of shares in issue during the  period.
The  calculation of diluted earnings per share is based on 41,993,399 (6  months
to  30th  September 2002: 41,890,805, 12 months to 31st March 2003:  41,760,588)
ordinary  shares.  The difference of 204,475 (6 months to 30th  September  2002:
773,548,  12 months to 31st March 2003: 530,830) represents the dilutive  effect
of  outstanding employee share options which have been calculated in  accordance
with FRS 14.

Earnings  per  share excluding exceptional item is based upon  the  earnings  as
above  after  adjusting for the exceptional item of £684,000 (6 months  to  30th
September  2002: £nil, 12 months to 31st March 2003: £nil) and  the  tax  relief
thereon.

4         Taxation
The taxation charge for the six months ended 30th September 2003 is based on the
estimated tax rate for the full year.



5           Reconciliation of movements in shareholders' funds

                                 Unaudited              Unaudited              Audited
                                 6 months to            6 months to            12 months
                                 30th September 2003    30th September 2002    31st March 2003
                                 £000                   £000                   £000

Profit for the period            3,203                  2,929                  7,632
Dividend                          (662)                  (535)                (2,385)
_____________________________________________________________________________________
                                 2,541                  2,394                  5,247
Other recognised gains and losses
relating to the period (net)      (243)                  (534)                  (602)
New share capital subscribed       603                     32                    324
____________________________________________________________________________________
Net addition to
shareholders' funds              2,901                  1,892                  4,969
Opening shareholders' funds     37,929                 32,960                 32,960
_____________________________________________________________________________________
Closing shareholders' funds     40,830                 34,852                 37,929
_____________________________________________________________________________________



6    Reconciliation of operating profit to net cash (outflow)/ inflow from
operating activities
                                 Unaudited              Unaudited              Audited
                                 6 months to            6 months to            12 months to
                                 30th September 2003    30th September 2002    31st March 2003
                                 £000                   £000                   £000

Operating profit                  4,760                  4,790                  11,621
Depreciation charge               1,896                  1,966                   3,922
(Increase)/decrease in stocks   (15,027)               (11,718)                  2,365
(Increase)/decrease in debtors  (34,556)               (27,334)                  5,990
Increase/(decrease) in creditors 15,927                 11,044                  (1,270)
Grant income                       (192)                   (29)                   (293)
Goodwill amortisation                87                     87                     175
________________________________________________________________________________________
Net cash (outflow)/inflow       (27,105)               (21,194)                 22,510
________________________________________________________________________________________



7         Gross cash flows
                                   Unaudited             Unaudited             Audited
                                   6 months to           6 months to           12 months to
                                   30th September 2003   30th September 2002   31st March 2003
                                   £000                  £000                  £000

Returns on investment and servicing of finance
Net interest paid                  (137)                 (547)                 (678)
Interest element of finance
lease repayments                    (14)                  (16)                  (29)
_____________________________________________________________________________________
                                   (151)                 (563)                 (707)
_____________________________________________________________________________________
Capital expenditure
Purchase of tangible
fixed assets                     (2,322)               (1,287)               (2,242)
Disposal of tangible
fixed assets                        101                   166                   266
Grants received in relation
to capital expenditure                -                 2,728                 2,728
_____________________________________________________________________________________
                                 (2,221)                1,607                   752
_____________________________________________________________________________________
Financing
New shares issued                   603                    32                   324
New net loans                     4,466                   614                (1,662)
Capital element of finance
lease payments                      (92)                 (112)                 (215)
_____________________________________________________________________________________
                                  4,977                   534                (1,553)
_____________________________________________________________________________________



8          Analysis of movement in net (debt)/funds


                        At 31st March    Cash Flow     Exchange Movement  At 30th September

                             £000           £000             £000               £000
Cash at bank
and in hand                 10,547        (10,546)             -                  1
Overdrafts and
bills of
exchange                    (4,434)       (16,997)            217             (21,214)
__________________________________________________________________________________________
                             6,113        (27,543)            217             (21,213)
Bank loans                  (1,848)        (4,466)             78              (6,236)
Finance leases                (832)            92              32                (708)
__________________________________________________________________________________________
                            (2,680)        (4,374)            110              (6,944)
__________________________________________________________________________________________
Total net funds/(debt)       3,433        (31,917)            327             (28,157)