IFF Sales Up 9% from Prior Year Quarter 

03/11/06 International Flavors & Fragrances Inc. has announced that third quarter 2006 sales totaled $539 million, up 9% from the prior year quarter; fragrance and flavor sales increased 12% and 6%, respectively. Reported sales for the 2006 quarter benefited from the generally weaker U.S. dollar during the quarter; at comparable exchange rates, sales would have increased 7% in comparison to the 2005 quarter.

Fragrance sales were led by a 24% increase in fine fragrance sales, with much of the growth driven by new product introductions. Sales of functional fragrances increased 5% from both increased volume and new product introductions while sales of fragrance ingredients increased 11% mainly from increased volume.

Flavor sales increased 6%, based on a combination of new product introductions and volume growth. Flavor compound sales increased in each region in both local currency and dollars.

“The acceleration of growth in sales and earnings is very encouraging,” said Robert M. Amen, IFF Chairman and Chief Executive Officer. “We continue to perform very well in fine fragrances, with our major customers, and in key growth markets – notably Latin America, Asia and Eastern Europe. These strong performances have been enhanced by renewed growth and improved operating results in both North America and Western Europe. These results demonstrate the strategic initiatives undertaken in the past year are beginning to pay off. I am also very pleased to see the improvement in flavor sales.”

“The actions we announced in mid-October to organize into flavors and fragrance business units will sharpen our focus and improve accountability. I believe this will accelerate our growth and improve results. We are confident in our growth prospects and our ability to build shareholder value as demonstrated by the recent 14% increase in our dividend and $300 million share repurchase program.”

IFF reported earnings per share for the third quarter of $.70, exceeding the First Call consensus expectation of $.58. The third quarter 2005 results as reported were $.72, which included a gain of $.24 per share relating to repatriation of funds from overseas affiliates. On a comparable basis, excluding this one-time repatriation benefit, the third quarter 2006 results per share represent a 46% gain over the 2005 quarter.

For the full year, the Company expects sales to increase by mid-single digit rates in both local currency and reported dollars, in comparison to 2005; previously, sales had been expected to increase at a lower rate. Earnings per share for 2006 are now expected to be in the range of $2.36 to $2.44, compared to previous expectations of $2.20 to $2.28; the improvement comes primarily from expected higher sales for the year, and the benefit of actions taken to improve profitability.