Intertape Polymer Reports Fourth Quarter and Full-Year Results

MONTREAL, QUEBEC AND BRADENTON, FLORIDA, Mar 30
(MARKET WIRE) --
- Company adversely impacted by economic downturn

- Solid financial footing enabled Company to weather fourth quarter storm

Intertape Polymer Group Inc. (TSX: ITP)(NYSE: ITP) ("Intertape" or the
"Company") today released results for the three months and full year
ended December 31, 2008. All dollar amounts are US denominated unless
otherwise indicated.

"The majority of 2008 reflected the benefits of business model revisions,
capital structure improvements, new product introductions, and cost
reduction measures undertaken in the past several years. In the first
nine months we achieved a $14.7 million ($0.25 per share, both basic and
diluted) improvement in earnings despite the fact that the United States
economy entered into recession in the fourth quarter of 2007 and
resin-based raw materials costs had increased sharply and rapidly during
this period," stated Intertape Chairman Eric E. Baker.

"A number of unprecedented events beyond our control combined to create a
very disappointing fourth quarter. These included the failure of several
financial institutions, the tightening of restrictions on the ability to
access credit, a deepening recession, and specific to our industry, a
rapid 60% decrease in resin costs and an inventory destocking throughout
the supply chain. These factors resulted in a significant impact on our
fourth quarter and full-year results. Nonetheless, we believe that the
actions taken in late 2008 and early 2009 to stabilize our financial
base, along with additional extensive cost cutting and cash conservation
measures that we are implementing enable us to weather the severe
recession," commented Intertape Executive Director, Melbourne F. Yull.

Earnings

The Company incurred a net loss in the fourth quarter of $99.8 million or
$1.69 per share, which included a $66.7 million charge for goodwill
impairment, compared to a net loss of $0.7 million or $0.01 per share for
the corresponding quarter a year ago. In addition to the goodwill charge,
the Company's fourth quarter results were adversely affected by a
significant decline in customer demand, a rapid decline in the price of
resin-based raw materials and other selected raw materials and an
adjustment of the income tax valuation allowance. Adjusted net earnings
for the fourth quarter of 2008 were a loss of $16.1 million, versus an
adjusted net loss of $0.7 million for the fourth quarter of 2007.

For the full-year 2008, the Company recorded a net loss of $92.8 million
or $1.57 per share versus a fiscal 2007 net loss of $8.4 million or $0.19
per share. The decrease is attributable primarily to the decline in
fourth quarter results. The Company's profits for the first nine months
of 2008 totaled $7.0 million ($0.12 per share, both basic and diluted),
compared to a loss of $7.7 million ($0.19 per share, both basic and
diluted) for the first nine months of 2007. For the full year 2008,
adjusted net earnings were a loss of $3.1 million, versus an adjusted net
loss of $2.2 million for 2007.

Sales

Sales for the fourth quarter were $153.1 million compared to the $191.5
million posted for the fourth quarter a year ago. Unit volumes decreased
22.4% from the fourth quarter of 2007 due to weaker end-user demand as
well as inventory destocking by both end-users and the Company's
distributor customer base.

Sales for the full year were $737.2 million compared to $767.3 million in
2007. The year-over-year drop was primarily attributable to the lower
fourth quarter 2008 sales. For the first nine months of 2008, sales were
essentially flat with the same period in 2007.

Gross profit and gross margin

Gross profit for the fourth quarter was a negative $5.5 million, compared
to a gross profit of $28.4 million at a gross margin of 14.9% a year ago.
The significant decline in gross profits for the fourth quarter is a
result of $17.3 million in lower sales volumes and $16.6 million in gross
margin compression. Included in the $16.6 million of gross margin
compression is a non-cash charge of $7.7 million reducing inventories on
hand at year-end to their net realizable value. Much of the remaining
gross margin compression experienced in the fourth quarter related to the
sale of inventories on hand at September 30, 2008.

Gross profit and gross margin for 2008 was $78.3 million and 10.6%
respectively, compared to $116.3 million and 15.2% for 2007. Through the
first nine months of 2008 gross profit was down $4.2 million compared to
the same period in 2007 because of slightly lower sales volumes. The
remainder of the decrease was due to the drop in the gross profit for the
fourth quarter of 2008.

SG&A expenses

Selling, general and administrative expenses ("SG&A") were $15.9 million
(10.4% of sales) for the fourth quarter, compared to $18.7 million (9.8%
of sales) a year ago. 2008 SG&A expenses were $68.2 million (9.3% of
sales) compared to $71.2 million (9.3% of sales) for 2007. The 2008
reduction in SG&A was primarily the result of lower professional fees
paid to third parties.

EBITDA

EBITDA in the fourth quarter was a negative $80.6 million compared to
$18.1 million for the same quarter a year ago and for 2008 was a negative
$28.2 million versus $66.7 million last year. Adjusted EBITDA in the
fourth quarter was $3.1 million compared to $18.1 million for the same
quarter a year ago and for 2008 was $55.5 million versus $74.8 million
last year. The lower adjusted EBITDA in the fourth quarter of 2008
compared to the fourth quarter of 2007 is the result of lower gross
profits.

Segmented Information

Tapes & Films Division

Sales for the Tapes and Films ("T&F") Division for the fourth quarter
were $122.6 million, an 18.8% decrease from sales in the fourth quarter
of 2007. The decrease in sales volume was across substantially all
product lines and reflected the deep economic downturn that impacted the
global economy as a whole and the packaging industry in particular.

2008 sales decreased 2.2% to $592.2 million compared to $605.7 million
for 2007. The Division had a sales volume (unit) decrease of 7.9% for
2008 and 2.7% for 2007. The sales volume decline in both 2008 and 2007
was not limited to particular product lines or channels of distribution.
Approximately half of the 2008 sales volume decline occurred in the
fourth quarter.

Gross profits for the fourth quarter were a negative $2.8 million
compared to $24.5 million at a gross margin of 16.2% for the fourth
quarter of 2007. Of the total decrease, $13.5 million was the result of
lower sales, the balance was attributable to gross margin compression.
Additionally, at December 31, 2008, the T&F Division recorded a non-cash
charge reducing the carrying value of its on-hand inventories by $1.5
million to reflect net realizable value. The T&F Division recorded an
additional non-cash charge of $1.9 million at December 31, 2008,
representing the expected loss arising from outstanding raw material
purchase commitments that are at above market price levels and that the
Division does not expect to be able to recover through selling prices in
2009.

Gross profit and gross margin for 2008 were $67.4 million and 11.4%
compared to $99.1 million and 16.4% for the same period a year ago, due
to lower sales volumes and the compression of gross margins. Of the total
decrease, $4.3 million was incurred in the first nine months of 2008,
while the remainder, $27.4 million, in the fourth quarter.

EBITDA for the fourth quarter was a negative $9.0 million compared to
$16.9 million for the fourth quarter of 2007. The decline in EBITDA in
the fourth quarter of 2008 compared to the fourth quarter of 2007 is the
result of a decrease in gross profits. EBITDA was $38.1 million in 2008
and $69.3 million in 2007 respectively. Adjusted EBITDA for the fourth
quarter was $4.9 million compared to $16.9 million for the fourth quarter
of 2007. Adjusted EBITDA was $52.0 million in 2008 and $69.3 million in
2007 respectively.

Tapes and Films Division EBITDA
Reconciliation to Net Earnings
(in millions of US dollars)
(unaudited)
--------------------------------------------------------------------------
Three months Twelve months
For the periods ended December 31, 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Divisional earnings before
impairment of goodwill and
income taxes (16.5) 8.9 8.7 39.2
Depreciation and
amortization 7.5 8.0 29.4 30.1
--------------------------------------------------------------------------
EBITDA (9.0) 16.9 38.1 69.3
Add back:
Gross profit margin compression 13.9 13.9

--------------------------------------------------------------------------
Adjusted EBITDA 4.9 16.9 52.0 69.3
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Engineered Coated Products Division

Fourth quarter sales for the Engineered Coated Products ("ECP") Division
were $30.5 million, compared to $40.5 million for the fourth quarter of
2007. Sales volumes (units) decreased 24.3% for the fourth quarter of
2008 compared to the fourth quarter of 2007. Selling prices were
relatively unchanged in the fourth quarter of 2008 compared to the fourth
quarter of 2007, however, did decrease on a sequential basis. The
weakening of the Canadian dollar relative to the US dollar during the
fourth quarter of 2008 also contributed to the fourth quarter decline in
sales. The sales volume decrease for the fourth quarter was across most
of the ECP Division's products and was reflective of the deep global
economic downturn that occurred in the fourth quarter. 2008 sales
decreased 10.3% to $145.0 million compared to $161.6 million for 2007.
The sales volume (units) decrease for 2008 compared to 2007 was 15.8%.
The largest market for ECP products is the North American residential
construction market, which experienced a slowdown starting in the summer
of 2006 and dramatically intensified through 2008. For the first nine
months of 2008, the decline in sales of traditional ECP products was
mitigated by the introduction of several new residential construction
market products that allowed the Company to participate in segments of
the residential construction market that it previously had either not
participated in or participated only on a small scale. In response to
rising raw material costs, the ECP Division instituted substantial
selling price increases during the first nine months of 2008. Selling
prices declined in the fourth quarter of 2008 on a sequential basis as
raw material costs decreased.

Gross profits for the fourth quarter totalled a negative $2.7 million at
a gross margin of negative 8.7% compared to $4.0 million at a gross
margin of 9.7% for the fourth quarter of 2007. Of the total decrease,
$3.9 million was due to lower sales volumes and the remainder to gross
margin compression. Additionally, at December 31, 2008, the ECP Division
recorded a non-cash charge reducing the carrying value of its on-hand
inventories by $3.9 million to reflect net realizable value. The ECP
Division recorded an additional non-cash charge of $0.4 million at
December 31, 2008, representing the expected loss arising from
outstanding raw material purchase commitments that are at above market
price levels and that the Division does not expect to be able to recover
through selling prices in 2009.

Gross profits and gross margins were $10.9 million at 7.5% and $17.2
million at 10.7%, respectively in 2008 and 2007. The gross profit and
gross margin decline for 2008 occurred in the fourth quarter. In the
first nine months of 2008, the gross profit and gross margin improved
slightly compared to the first nine months of 2007 due to increased
selling prices and improved product mix.

EBITDA for the fourth quarter was a negative $3.9 million compared to
$2.2 million for the fourth quarter of 2007. EBITDA for 2008 was $3.6
million, compared to $9.7 million for 2007. The decline was attributable
to the lower gross profits. Adjusted EBITDA for the fourth quarter was a
loss of $1.2 million compared to $2.2 million for the fourth quarter of
2007. Adjusted EBITDA was $6.3 million in 2008 and $9.7 million in 2007
respectively.

ECP Division EBITDA
Reconciliation to Net Earnings
(in millions of US dollars)
(unaudited)
--------------------------------------------------------------------------
Three months Twelve months
For the periods ended December 31, 2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Divisional earnings before
impairment of goodwill and
income taxes (5.9) 0.7 (2.8) 4.2
Depreciation and amortization 2.0 1.5 6.4 5.5
--------------------------------------------------------------------------
EBITDA (3.9) 2.2 3.6 9.7
Add back:
Gross profit margin compression 2.7 2.7
--------------------------------------------------------------------------

Adjusted EBITDA (1.2) 2.2 6.3 9.7
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Cash flow from operations

The Company generated cash flows from operating activities in the fourth
quarter of 2008 of $12.2 million compared to $16.1 million for the fourth
quarter of 2007. The decrease was due to the decline in profitability,
offset somewhat by cash generated as a result of working capital changes.

For 2008, cash flows from operating activities were $20.8 million, versus
$37.8 million for 2007, because of the decline in profitability.

Liquidity

The Company relies upon the funds generated from operations and funds
available to it under its five-year asset-backed loan ("ABL") to meet
working capital requirements and anticipated obligations under its ABL
and the Senior Subordinated Notes and to finance capital expenditures for
the foreseeable future. As at December 31, 2008, the Company had cash and
unused availability under its ABL totalling $50.7 million.

The ABL has a financial covenant, a fixed charge ratio, the target for
which is 1.0 to 1.0. The financial covenant becomes effective only when
unused availability drops below $25.0 million. While the Company did not
meet the ratio at December 31, 2008, it was not in effect as cash and
unused availability was in excess of $50.0 million. To date, in the first
quarter of 2009, the Company has maintained availability in excess of
$25.0 million despite having capital expenditures and a semi-annual
interest payment on the Senior Subordinated Notes totalling approximately
$11.0 million. In addition, the Company has paid down its outstanding
borrowings under the ABL by approximately $12.0 million in the first two
months of 2009. It is the Company's intention to remain above the $25.0
million of unused availability threshold during 2009.

Income taxes

Included in deferred income tax expense for 2008 is $17.2 million of
increases to the valuation allowance due to management's revised
assessment of the recoverability of the Company's future income tax
amounts in the current economic environment. Included in deferred income
tax expense for 2007 is $2.6 million of increases to the valuation
allowance.

Cost reduction efforts

Intertape has taken several measures in response to the challenges
presented by the deep economic downturn including the reduction in staff
and the elimination of many third party service providers. These cost
reduction efforts are expected to save an estimated $7.0 million a year
in operating expenses. In mid-January 2009 a temporary compensation
reduction was implemented for salaried employees totaling approximately
$3.5 million annually. In addition, the Company expects to continue to
reduce costs throughout 2009 by approximately $23.0 million as part of
its ongoing productivity improvement programs. Not all of the 2009
improvements are expected to contribute to an increase in the Company's
earnings. Some of these cost savings are necessary to offset the
increased economic costs of the Company's manufacturing operations, as
well as to remain competitive in the marketplace.

Outlook

"While the general economic outlook remains quite uncertain, higher sales
volumes within the Tapes and Films Division and the benefits of the
expense reduction initiatives are expected to contribute to a sequential
quarterly improvement in the EBITDA of the Company. The most significant
improvements expected in the first quarter of 2009 compared to the fourth
quarter of 2008 are the absence of the $16.6 million in gross margin
compression and the $66.7 million goodwill impairment charge that were
recorded in the fourth quarter of 2008. The Company anticipates earning
positive EBITDA in the first quarter of 2009," commented Mr. Yull.

Unit order entry in the T&F Division for the first quarter is currently
running at 8-10% above fourth quarter levels. Looking forward to the
second and third quarters, the T&F Division is expecting an improvement
in sales volumes due to the seasonal nature of some products and the
expected benefits of the new product and market initiatives. Seasonal
improvement is expected in the ECP Division during the second and third
quarters of 2009, along with benefits from new product and market
initiatives. The first quarter of the year is traditionally the slowest
period for this Division as its two largest market product classes are
residential construction and agriculture.

"In addition to the cost cutting and cash conservation measures that we
have put in place over the past year, we plan to limit our 2009 capital
spending to maintenance items, once certain outstanding commitments are
fulfilled, until the outlook becomes clearer," stated Victor DiTommaso,
Chief Financial Officer.

The Company estimates that its maintenance capital expenditures
approximate $8.0 million a year.

Non-GAAP information

This release contains certain non-GAAP financial measures, including
adjusted net earnings, EBITDA and Adjusted EBITDA. The Company believes
the inclusion of such non-GAAP financial measures improve the
transparency of the Company's disclosure, provide a meaningful
presentation of the Company's results from its core business operations
by excluding the impact of items not related to the Company's ongoing
core business operations, improve the period-to-period comparability of
the Company's results from its core business operations, and are used by
management and the Company's investors in evaluating the financial
measures to the most directly comparable GAAP measures.

"Adjusted net earnings" does not have any standardized meaning prescribed
by Canadian or U.S. GAAP and is therefore unlikely to be comparable to
similar measures presented by other issuers. "Adjusted net earnings" is
defined by the Company as net earnings (as reported) less manufacturing
facility closure costs, restructuring, strategic alternative and other
charges, impairment of property, plant and equipment, impairment of
goodwill, and unprecedented gross profit margin compression. A
reconciliation of adjusted net earnings to GAAP net earnings is set forth
below.

Adjusted Net Earnings (Loss)
Reconciliation to Net Earnings (Loss)
(in millions of US dollars)(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
For the periods ended
December 31, 2008 2007 2008 2007 2006
--------------------------------------------------------------------------
$ $ $ $ $
Net earnings (Loss) -
As Reported (99.8) (0.7) (92.8) (8.4) (166.7)
Add back:
Gross profit margin
compression 16.6 16.6
Manufacturing facility
closures, restructuring,
strategic alternatives
and other charges
(net of tax) 6.2 49.5
Impairment of property,
plant & equipment 0.4 0.4
Impairment of goodwill
(net of tax) 66.7 66.7 110.3
Refinancing expense 6.0
--------------------------------------------------------------------------
Adjusted net earnings
(Loss) (16.1) (0.7) (3.1) (2.2) (6.9)

(in US dollars per share
- diluted)

Net earnings (loss) -
as reported (1.69) (0.01) (1.57) (0.19) (4.07)
Adjusted net earnings
(loss) (0.27) (0.01) (0.05) (0.05) (0.17)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

A reconciliation of the Company's EBITDA and adjusted EBITDA, both
non-GAAP financial measures, to GAAP net earnings (loss) is set out in
the EBITDA reconciliation table below. EBITDA should not be construed as
earnings (loss) before income taxes, net earnings (loss) or cash flows
from operating activities as determined by GAAP. The Company defines
EBITDA as net earnings (loss) before (i) income taxes (recovery); (ii)
financial expenses, net of amortization; (iii) refinancing expense, net
of amortization; (iv) amortization of other intangibles and capitalized
software costs; and (v) depreciation. The Company defines adjusted EBITDA
as EBITDA before manufacturing facility closures, restructuring,
strategic alternatives and other charges, impairment of property, plant
and equipment, impairment of goodwill and unprecedented gross profit
margin compression. Other companies in the Company's industry may
calculate EBITDA and adjusted EBITDA differently than the Company does.

EBITDA and adjusted EBITDA are not measurements of financial performance
under GAAP and should not be considered as alternatives to cash flows
from operating activities or as alternatives to net earnings (loss) as
indicators of the Company's operating performance or any other measures
of performance derived in accordance with GAAP. The Company has included
these non-GAAP financial measures because they permit investors to make a
more meaningful comparison of the Company's performance between the
periods presented. In addition, EBITDA and adjusted EBITDA are used by
management in evaluating the Company's performance.

EBITDA Reconciliation to
Net Earnings (Loss)
(in millions of US dollars)
(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
For the periods ended
December 31, 2008 2007 2008 2007 2006
--------------------------------------------------------------------------
$ $ $ $ $
Net earnings (loss) -
As reported (99.8) (0.7) (92.8) (8.4) (166.7)
Add Back:
Financial expenses,
net of amortization 5.6 5.1 21.6 23.9 25.3
Income taxes (recovery) 4.4 3.4 3.4 12.3 (30.7)
Depreciation &
Amortization 9.2 10.3 39.6 38.9 36.6
--------------------------------------------------------------------------
EBITDA (80.6) 18.1 (28.2) 66.7 (135.5)
Gross profit margin
Compression 16.6 16.6
Manufacturing facility
closures, restructuring,
strategic alternatives
and other charges 8.1 76.1
Impairment of property,
plant & equipment 0.4 0.4
Impairment of goodwill 66.7 66.7 120.0
--------------------------------------------------------------------------
Adjusted EBITDA 3.1 18.1 55.5 74.8 60.6
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Conference Call

A conference call to discuss Intertape's 2008 fourth quarter and
full-year results will be held this morning at 10 A.M. Eastern Time.
Participants may dial 1-800-230-1059 (U.S. and Canada) and 1-612-332-0637
(International).

You may access a replay of the call by dialing 1-800-475-6701 (U.S. and
Canada), or 1-320- 365-3844 (International), and entering the Access Code
993310. The recording will be available from today, March 30, 2009 at
12:00 P.M. until Thursday, April 30, 2009 at 11:59 P.M., Eastern Time.

About Intertape Polymer Group

Intertape Polymer Group is a recognized leader in the development and
manufacture of specialized polyolefin plastic and paper based packaging
products and complementary packaging systems for industrial and retail
use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida,
the Company employs approximately 2,100 employees with operations in 17
locations, including 13 manufacturing facilities in North America and one
in

Europe.

Safe Harbor Statement

Certain statements and information included in this press release
constitute forward-looking information within the meaning of applicable
Canadian securities legislation and the Federal Private Securities
Litigation Reform Act of 1995.

Forward-looking statements may relate to the Company's future outlook and
anticipated events, the Company's business, its operations, financial
condition or results. Particularly, statements about the Company's
objectives and strategies to achieve those objectives are forward looking
statements. While these statements are based on certain factors and
assumptions which management considers to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied
in such forward-looking statements. The risks include, but are not
limited to, the factors contained in the Company's filings with the
Canadian securities regulators and the U.S. Securities and Exchange
Commission. Except as required by applicable law, the Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. This press release contains certain non-GAAP financial
measures as defined under SEC rules, including EBITDA adjusted EBITDA and
adjusted net earnings. The Company believes such non-GAAP financial
measures improve the transparency of the Company's disclosures, provide a
meaningful presentation of the Company's results from its core business
operations, by excluding the impact of items not related to the Company's
ongoing core business operations, and improve the period-to-period
comparability of the Company's results from its core business operations.
As required by SEC rules, the Company has provided reconciliations of
those measures to the most directly comparable GAAP measures.

Intertape Polymer Group Inc.
Consolidated Earnings
Periods ended December 31,
(In thousands of US dollars,
except per share amounts)
(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $

Sales 153,142 191,453 737,155 767,272
Cost of sales 158,620 163,010 658,900 650,931
--------------------------------------------------------------------------
Gross profit (5,478) 28,443 78,255 116,341
--------------------------------------------------------------------------

Selling, general and
administrative expenses 15,874 18,664 68,189 71,169
Stock-based compensation
expense 170 289 1,268 1,780
Research and development
expenses 1,307 947 5,610 4,135
Financial expenses
Interest 3,812 5,706 18,365 27,425
Other 1,948 205 1,425 (206)
Refinancing 6,031
Manufacturing facility
closures, restructuring,
strategic alternatives,
and other charges 8,114
--------------------------------------------------------------------------
23,111 25,811 100,888 112,417
--------------------------------------------------------------------------
Earnings (loss) before
impairment of goodwill and
income taxes (28,589) 2,632 (22,633)
3,924Impairment of goodwill 66,726 66,726
--------------------------------------------------------------------------
Earnings (loss) before
income taxes (95,315) 2,632 (89,359) 3,924
Income taxes 4,478 3,349 3,440 12,317
--------------------------------------------------------------------------
Net loss (99,793) (717) (92,799) (8,393)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Loss per share
Basic (1.69) (0.01) (1.57) (0.19)
Diluted (1.69) (0.01) (1.57) (0.19)

Consolidated Deficit
Periods ended December 31,
(In thousands of US dollars)
(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
Balance, beginning of period (60,740) (66,765) (67,482) (59,532)
Cummulative impact of
accounting changes relating
to financial instruments
and hedges 443
Cummulative impact of
accounting changes relating
to inventories (252)
--------------------------------------------------------------------------
Balance as at beginning of
period, as restated (60,740) (66,765) (67,734) (59,089)
Net loss (99,793) (717) (92,799) (8,393)
--------------------------------------------------------------------------
Balance, end of period (160,533) (67,482) (160,533) (67,482)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Weighted average
number of common
shares outstanding

Basic 58,951,050 58,185,756 58,956,348 45,286,644
Diluted 58,951,050 58,185,756 58,956,348 45,286,644

Intertape Polymer Group Inc.
Consolidated Comprehensive Income (Loss)
Periods ended December 31,
(In thousands of US dollars)
(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $

Net loss (99,793) (717) (92,799) (8,393)
--------------------------------------------------------------------------
Other comprehensive income
Change in fair value of
interest rate swap
agreements, designated
as a cash flow hedges
(net of future income
taxes of $1,053 and $1,733
for the three and twelve
months ended December 31,
2008, respectively; $565
and $964 for the three
and twelve months ended
December 31, 2007,
respectively) (1,792) (961) (2,950) (1,641)
Settlement of interest
rate swap
agreements, recorded in
consolidated earnings
(net of income taxes of
$1,080) 1,840
Change in fair value of
forward foreign exchange
rate contracts,
designated as cash flow
hedges (net of future
income taxes of $151) (257) (257)
Reduction of the net
investment in a foreign
subsidiary 244 (899)
Change in accumulated
currency translation
adjustments (23,288) 4,870 (32,644) 31,824
--------------------------------------------------------------------------
Other comprehensive income (25,093) 3,909 (34,910) 30,183
--------------------------------------------------------------------------
Comprehensive income (loss)
for the period (124,886) 3,192 (127,709) 21,790
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Intertape Polymer Group Inc.
Consolidated Cash Flows
Periods ended December 31,
(In thousands of US dollars)
(Unaudited)
--------------------------------------------------------------------------
Three months Twelve months
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
$ $ $ $
OPERATING ACTIVITIES
Net loss (99,793) (717) (92,799) (8,393)
Non-cash items
Depreciation and amortization 9,232 10,343 36,538 38,902
Impairment of goodwill 66,726 0 66,726
Loss on disposal of property,
plant and equipment 325 353 532 460
Property, plant and equipment
impairment and other charges
in connection with
manufacturing facility
closures, restructuring,
strategic alternatives and
other charges 1,373
Write-down of inventories 7,703 7,703
Impairment of property,
plant and equipment 424 424
Write-off of debt issue
expenses in connection with
debt refinancing 3,111
Future income taxes 4,996 3,461 4,006 11,439
Stock-based compensation
expense 169 289 1,268 1,780
Pension and post-retirement
benefits funding in excess
of amounts expensed (239) (504) (1,479) (2,356)
Foreign exchange gain
resulting from the reduction
of a net investment in a
foreign subsidiary (899) (899)
--------------------------------------------------------------------------
Cash flows from operations
before changes in non-cash
working capital items (11,356) 13,225 25,131 43,205
--------------------------------------------------------------------------
Changes in non-cash working
capital items
Trade receivables 30,659 21,736 12,310 9,545
Other receivables (1,031) (763) (1,491) (791)
Inventories 9,487 (8,952) (6,556) (18,736)
Parts and supplies (668) (157) (1,306) (817)
Prepaid expenses 347 301 364 515
Accounts payable and
accrued liabilities (15,284) (9,298) (7,664) 4,835
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23,510 2,867 (4,343) (5,449)
--------------------------------------------------------------------------
Cash flows from operating
activities 12,154 16,092 20,788 37,756
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INVESTING ACTIVITIES
Property, plant and
equipment (3,084) (6,003) (21,048) (18,470)
Proceeds on the disposal
of property, plant and
equipment 80 419 3,202 1,376
Other assets (111) 525 (795) (1,308)
Intangible assets (570) (3,207)
Goodwill (300)
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Cash flows from investing
activities (3,685) (5,059) (21,848) (18,702)
--------------------------------------------------------------------------

FINANCING ACTIVITIES
Change in bank indebtedness (53)
Long-term debt 23,908 (121) 160,119 73
Debt issue expenses (134) 33 (2,777) (2,269)
Repayment of long-term debt (26,953) (16,877) (154,952) (80,738)
Proceeds from shareholders'
rights offering 16,875 62,753
Shareholders' rights
offering costs (1,902) (1,902)
--------------------------------------------------------------------------
Cash flows from financing
activities (3,179) (2,045) 2,390 (22,083)
--------------------------------------------------------------------------
Net increase (decrease)
in cash 5,290 8,988 1,330 (3,029)
Effect of foreign currency
translation adjustments (837) 461 (1,469) 1,259
Cash, beginning of period 10,937 6,080 15,529 17,299
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Cash, end of period 15,390 15,529 15,390 15,529
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Consolidated Balance Sheets
As at December 31,
(In thousands of US dollars)
(Unaudited)
--------------------------------------------------------------------------

2008
2007--------------------------------------------------------------------------
$ $
ASSETS
Current assets
Cash 15,390 15,529
Trade receivables 75,467 91,427
Other receivables 4,093 2,970
Inventories 90,846 99,482
Parts and supplies 14,119 13,356
Prepaid expenses 3,037 3,522
Future income taxes 9,064 11,231
--------------------------------------------------------------------------
212,016 237,517

Property, plant and equipment 289,763 317,866
Other assets 22,364 23,176
Intangible assets 3,956
Future income taxes 47,067 53,990
Goodwill 70,250
--------------------------------------------------------------------------
575,166 702,799
--------------------------------------------------------------------------
--------------------------------------------------------------------------

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 78,249 88,866
Installments on long-term debt 623 3,074
--------------------------------------------------------------------------
78,872 91,940

Long-term debt 250,802 240,285
Pension and post-retirement benefits 9,206 9,765
Deriative financial instruments 2,969 799
--------------------------------------------------------------------------
341,849 342,789
--------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Capital stock 348,174 348,174
Contributed surplus 13,124 11,856

Deficit (160,533) (67,482)
Accumulated other comprehensive income 32,552 67,462
--------------------------------------------------------------------------
(127,981) (20)
--------------------------------------------------------------------------
233,317 360,010
--------------------------------------------------------------------------
575,166 702,799
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Contacts:
MaisonBrison
Rick Leckner
514-731-0000

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