Trading Statement

International Greetings PLC
11 February 2008

11 February 2008

                          INTERNATIONAL GREETINGS PLC
                   ('International Greetings' or 'the Group')


Trading Statement


International Greetings PLC, the designer, manufacturer and distributor of
greetings, stationery and licensed published products, today announces an update
on its strategic review, current trading and future prospects.

Strategic Review

As stated in the Interim Results announcement on 13 December 2007, the recently
restructured Board of International Greetings has been conducting an extensive
review of its operations, with particular emphasis on the difficulties being
experienced in the UK Greetings Division. Based on initial findings, it is now
clear that the UK manufacturing facilities, together with those in Eastern
Europe and China, cannot in their current form deliver acceptable profit
margins. With immediate effect, these manufacturing units are being restructured
which will lead to a rationalisation of the business, and in due course certain
fixed assets will be disposed of. In future, the UK Greetings Division will have
a market-led rather than volume driven business model, and this revised approach
should deliver stronger margin levels more in line with the Group's other UK
trading activities.

In addition to the UK Greetings Division, all other businesses within the Group
have been reviewed. It is the Board's intention to focus on its core profitable
activities and to exit those businesses which are either not performing to
expectations or are considered not of strategic importance for the future.

With the Group's focus now on maximising the potential of existing businesses
including recent acquisitions, International Greetings now has a strong platform
to achieve growth organically in all its geographical territories of operation.

The reduction of in-house manufacturing in the UK Greetings Division will lead
to a significant decrease in capital requirements and expenditure from previous
levels.

Current Trading

Since the announcement of the interim results, it has become clear that the
trading performance of the Group in the current year will be worse than
anticipated. The key factors are a reduction in the final uptake of Christmas
goods in the latter part of December, the slowdown in consumer spending during
the first quarter of this calendar year, and following the review of the UK
Greetings Division, much worse than expected results for that business. Elements
contributing to this Division's poor performance include manufacturing
inefficiencies, additional freight costs, higher than anticipated bad debts and
increased stock provisions due to reduced Christmas orders. As a result, the
Directors anticipate that International Greetings' financial performance before
exceptional reorganisation costs and other items, will be significantly below
market expectations for the year ending 31st March 2008.

In light of the current trading position and anticipated full year outlook, the
Board has decided that it would be inappropriate for them to recommend a final
dividend for the current financial year. Thereafter, the Company would
anticipate resuming paying dividends on a progressive and sustainable basis.

Future Prospects

The Group is now in its selling season for Christmas 2008 which will be
reflected in the March 2009 year end results and early indications have been
encouraging. The forward order book in those unaffected areas of the business is
looking strong illustrating the resilience and defensive nature of these
businesses within the Group. With the reduction of the cost base and refocus of
the UK manufacturing division, a significantly improved performance is expected
from this area of the business.

In the USA, the merger of Glitterwrap Inc into the existing operations is
proceeding well, on time and within budget, and the synergy benefits of this
merger are expected during the next financial year.

Conclusion

Following this major review of the business, the Board of International
Greetings is committed to resolving the short term difficulties in the UK
Greetings Division, and ensuring that all other businesses within the Group are
clearly focussed on delivering to their maximum potential through first class
product innovation and service to its customers.

For further information:

International Greetings PLC:                                   Tel: [phone]
Nick Fisher, Chief Executive
Mark Collini, Finance Director

Arden Partners plc:
Richard Day                                                   Tel: [phone]
Colin Smith                                                        0121 423 8940

Tavistock Communications:                                     Tel: [phone]
Matt Ridsdale 
Rachel Drysdale










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