RNS Number:4443J
IWP International PLC
31 March 2003


IWP INTERNATIONAL PLC

ANNOUNCEMENT FOR IMMEDIATE RELEASE

31st MARCH 2003

UPDATE ON CURRENT TRADING AND DEBT ARRANGEMENTS

Arising from the disposal of its Household business IWP has, over the past few
months, restructured its debt portfolio which included the repayment of almost
all our medium term bank facilities and, most recently, has had negotiations
with its bondholders concerning the early repayment of a portion of its
long-term fixed interest debt.  The Company is pleased to announce that
agreement has been reached with bondholders for the payment of c.Euro30m of this
high coupon long-term debt which has been retired from the original repayment
dates of 2007 and 2009.  The agreement, which has resulted in an early repayment
penalty of c.Euro3m., will benefit future years in the form of reduced interest
costs

The work to bring greater focus to IWP's activities in the core branded Colour
Cosmetics, Toiletries and Fragrances categories continues. As part of a review
of the activities of Constance Carroll we are currently implementing a
significant rationalisation programme, which will result in excess of 200
redundancies and the exit by that company from certain manufacturing activities
including all aerosol production.  This rationalisation programme whilst
resulting in a once off P&L charge of c.Euro8m will be completed by July 2003. This
charge, arising from plant and asset write-downs and redundancy payments, will
not have an adverse cash impact owing to resultant asset disposals. This
programme, while having some short term negative effects, will significantly
improve the competitive position of Constance Carroll and facilitate a real
improvement in its profitability over the coming years.

In Royal Sanders the very significant restructuring work which was advised in
December last year is progressing well and the operational targets set for the
business next year look attainable.  The disposal of certain property assets,
which were targeted for March '03 will now move into the next financial year and
as a result expected profits on that disposal and the cash associated with it of
c.Euro2m and c.Euro3m respectively will not occur until the next financial year.  This
item and increases in the cost of some other incidental restructuring activities
of c.Euro1m, will result in the exceptional charge in the current year exceeding
original expectations.

In common with many companies in Poland our operations there are not meeting
expectations.  We are examining all possible options in respect of this
business, and in that context we know that Poland's accession to the EU will
have a positive effect on the overall economic climate.

The underperformances referred to above coupled with difficult trading
conditions in North America will result in the Group not achieving its earnings
target this year. On the other hand we are optimistic about the future as the
most important contributors to Group profitability, i.e. the core branded
Personal Care companies, are beginning to perform strongly and these businesses
should allow IWP to deliver consistently stronger financial performances in the
medium and long term.


JOE MORAN
Chief Executive




This announcement has been issued through the Companies Announcement Service of
                            The Irish Stock Exchange



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