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IFF Reports Solid Fourth Quarter and Full-Year Results for 2007

Reported EPS up 9% in Fourth Quarter, up 14% for the Year

Adjusted EPS up 18% in Fourth Quarter, up 15% for the Year

Sales up 8% in Fourth Quarter, up 9% for the Year

NEW YORK, Jan. 30 /PRNewswire-FirstCall/ -- International Flavors & Fragrances Inc. (NYSE: IFF), a leading global creator of flavors and fragrances for consumer products, today announced results for the fourth quarter and full year 2007. Earnings per share (EPS) as reported were $.58 in the 2007 fourth quarter, versus $.53 in the prior year quarter. For the full year, earnings per share were $2.82, compared to $2.48 in 2006, an increase of 14 percent.

"I am pleased with our 2007 financial performance, which reflects strong top line and EPS growth," said Robert M. Amen, Chairman and Chief Executive Officer. "We met or exceeded our financial goals and delivered our second consecutive year of increased earnings.

"Our full-year financial results demonstrate that our strategies are working. Specifically, we increased sales, grew market share and built a stronger organization. While we still have opportunities for improvement, our 2007 accomplishments provide a sound foundation for continued growth in sales and EPS in 2008 and beyond."

Excluding non-recurring items, fourth quarter adjusted EPS ("Adjusted EPS") was $.53, up 18 percent over the comparable fourth quarter 2006 results. The 2007 fourth quarter reported EPS included a gain on the disposition of land of $.05; the 2006 reported EPS included restructuring charges of $.02, a gain on disposition of assets of $.06, and a one-time tax benefit of $.04 relating to years prior to 2006.

On a comparable basis, excluding non-recurring items from both years, the 2007 Adjusted EPS of $2.66 represents a 15 percent improvement over the full year 2006 adjusted EPS of $2.32. The full year 2007 reported EPS included a pension curtailment loss of $.04 resulting from the freezing of the Company's defined benefit pension plan for the majority of U.S. employees, gains on disposition of assets of $.09, and a one-time tax benefit of $.11 relating to years prior to 2007. The 2006 reported EPS included restructuring charges of $.02, gains on disposition of assets of $.11, an insurance recovery of $.03 related to a 2005 product contamination issue, and a one-time tax benefit of $.04 relating to prior years.

FOURTH QUARTER 2007

Sales were $553 million, up 8 percent from the prior year quarter; Flavor and Fragrance sales increased 16 percent and 2 percent, respectively. Sales for the 2007 quarter benefited from the generally weaker U.S. dollar; at comparable exchange rates, sales would have increased 2 percent in comparison to the 2006 quarter.

Flavors Business Unit

The significant increase in Flavor sales of 16 percent was driven primarily by new wins and increased volume in Europe and the emerging markets of Asia and Latin America. Flavor compound sales increased in each region in both local currency and dollars.

Fragrance Business Unit

Total Fragrance sales were driven by a 4 percent increase in Ingredient sales and a 3 percent increase in functional, offset by a decline in fine fragrance of 2 percent. Ingredient sales were strongest in Asia as a result of a strong demand for compounds and production shifting to the region. Sales in Fine and Beauty Care weakened in the fourth quarter; most notably in North America and Europe.

    Sales performance by region and product category follows:



                                         Fourth Quarter 2007 vs. 2006
                              Percent Change in Sales by Region of Destination

                           Fine &
                          Beauty   Functional Ingredients Total Flavors  Total
                           Care                           Frag.

    North
    America   Reported      -12%       -12%        -2%    -10%      1%     -5%

    Europe    Reported       -1%        16%         5%      6%     20%     11%
               Local
               Currency     -12%         4%        -5%     -5%      8%      -

    Latin
    America   Reported        4%        -1%        -3%      -      42%     12%

    Greater
     Asia     Reported       22%         4%        24%     12%     19%     16%
               Local
               Currency      19%         3%        22%     10%     12%     11%

    Total     Reported       -2%         3%         4%      2%     16%      8%
               Local
               Currency      -7%        -1%        -1%     -3%     10%      2%




    Fourth Quarter 2007 Highlights
    -- Net income was $47 million compared to $48 million in 2006.
    -- Gross profit, as a percentage of sales, was 40.7 percent compared with
       41.0 percent in the prior year quarter.  The decline was mainly due to
       lower selling prices for Ingredients and some impact of higher material
       costs as well as lower fragrance volumes.
    -- Research and Development expense, as a percentage of sales, was 9.7
       percent, representing a 12 percent increase compared to 2006; the 2006
       quarter was low by historical comparisons, at 9.3 percent of sales.
    -- Selling and Administrative expense, as a percentage of sales, was 17.8
       percent, in line with the 17.6 percent in the 2006 quarter.
    -- Other income (expense), net in the 2007 fourth quarter increased $8
       million over the prior year quarter, mainly due to the gain on sale of
       land as well as lower exchange losses.
    -- Interest expense totaled $16 million, increasing 119 percent compared
       to the 2006 quarter, primarily due to higher borrowings incurred in
       connection with the Company's accelerated share repurchase activities.
    -- The effective tax rate of 26.2 percent compared to 23.1 percent in
       2006; excluding the one-time tax benefit, the effective tax rate in the
       2006 quarter would have been 28.8 percent.  The lower effective tax
       rate for the current quarter resulted from a greater percentage of
       consolidated pre-tax earnings in lower tax jurisdictions.
    -- Average number of diluted shares (in thousands) of 81,694 compared to
       90,602 in the prior year quarter.

    FULL YEAR 2007

Sales totaled $2,277 million, up 9 percent from 2006; flavor and fragrance sales increased 12 percent and 6 percent, respectively. 2007 sales benefited from the generally weaker U.S. dollar and at comparable exchange rates would have increased 5 percent over the prior year.

Flavors Business Unit

Flavors delivered strong sales performance across all regions-most notably in Latin America, Greater Asia and Europe-and in virtually all categories, particularly beverages and savory.

Fragrance Business Unit

Total Fragrance sales for the year were driven by continued growth in Fine and Beauty Care of 8 percent and Ingredients of 9 percent. Foreign exchange accounted for 4 percent of the sales increase.

    Sales performance by region and product category follows:



                                                2007 vs. 2006
                              Percent Change in Sales by Region of Destination

                           Fine &
                          Beauty   Functional Ingredients Total Flavors  Total
                           Care                           Frag.


    North
    America   Reported        4%        -1%         1%      2%      4%      3%

    Europe    Reported        8%        12%        17%     12%     13%     12%
               Local
               Currency       -          4%         8%      3%      5%      4%

    Latin
    America   Reported       11%        -7%         3%     -1%     27%      7%

    Greater
    Asia      Reported       16%         2%         4%      6%     16%     12%
               Local
               Currency      13%         1%         4%      4%     12%      9%

    Total     Reported        8%         3%         9%      6%     12%      9%
               Local
               Currency       4%         -          5%      2%      9%      5%




    Full Year 2007 Highlights
    -- Net income of $247 million, up 9 percent compared to 2006.
    -- Gross profit, as a percentage of sales, was 41.8 percent compared with
       42.2 percent in 2006.  The decline was mainly due to lower selling
       prices for Ingredients and some impact of higher material costs.
    -- Research and Development expense, as a percentage of sales, was 8.7
       percent, comparable to the prior year.
    -- Selling and Administrative expense, as a percentage of sales, declined
       to 16.5 percent compared to 16.8 percent in 2006.
    -- Other income (expense), net in 2007 increased $4 million over the prior
       year, mainly due to the gain on sale of land as well as favorable
       exchange results.
    -- Interest expense totaled $42 million, increasing 63 percent compared to
       2006, due to higher borrowings incurred in connection with the
       Company's accelerated share repurchase activities.  Average cost of
       debt was 4.5 percent for 2007 compared to 3.3 percent in 2006.
    -- The effective tax rate of 24.8 percent compared to a rate of 27.7
       percent in the prior year.  Both the 2007 and 2006 rates benefited from
       favorable tax rulings with respect to prior years; excluding the
       benefit of these rulings from both years, the 2007 effective tax rate
       would have been 27.9 percent compared to a rate of 28.8 percent for
       2006. The lower effective tax rate for the current year was the result
       of a greater percentage of consolidated pre-tax earnings in lower tax
       jurisdictions.
    -- Average number of diluted shares (in thousands) of 87,633 compared to
       91,369 in 2006.

    About IFF

International Flavors & Fragrances Inc. (NYSE: IFF), is a leading creator of flavors and fragrances used in a wide variety of consumer products. Consumers experience these unique scents and tastes in fine fragrances and beauty care, detergents and household goods, as well as beverages, confectionary and food products. The Company leverages its competitive advantages of brand understanding and consumer insight combined with its focus on R&D and innovation, to provide customers with differentiated product offerings. A member of the S&P 500 Index, IFF has sales, manufacturing and creative facilities in 30 countries worldwide. For more information, please visit our Web site at www.iff.com.

Individuals interested in receiving future updates on IFF via e-mail can register at http://ir.iff.biz.

Audio Web Cast

An audio Web cast, to discuss the Company's fourth quarter and full year 2007 financial results and outlook, will be held today at 10:00 a.m. ET. Interested parties can access the Web cast and accompanying slide presentation on the Company's Web site at www.iff.com, under the Investor Relations section. For those unable to listen to the live broadcast, a replay will be available on the Company's Web site approximately one hour after the event and will remain available on the IFF Web site until 12:00 p.m. on February 13, 2008.

Cautionary Statement Under The Private Securities Litigation Reform Act of 1995

Statements in this report, which are not historical facts or information, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current assumptions, estimates and expectations. Certain of such forward-looking information may be identified by such terms as "expect," "believe," "outlook," "guidance," "may," and similar terms or variations thereof. All information concerning future revenues, tax rates or benefits, savings, earnings and other future financial results or financial position, constitutes forward-looking information. Such forward-looking statements involve significant risks, uncertainties and other factors. Actual results of the Company may differ materially from any forward-looking information or results expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in the Company's markets, including economic, population health and political uncertainties; interest rates; the price, quality and availability of raw materials; the Company's ability to implement its business strategy, including the achievement of anticipated cost savings, profitability and growth targets; the impact on cash and the impact of increased borrowings related to the July 2007 share repurchase program; the impact of currency fluctuation or devaluation in the Company's principal foreign markets and the success of the Company's hedging and risk management strategies; the outcome of uncertainties related to litigation; the impact of possible pension funding obligations and increased pension expense on the Company's cash flow and results of operations; and the effect of legal and regulatory proceedings, as well as restrictions imposed on the Company, its operations or its representatives by U.S. and foreign governments. The Company intends its forward-looking statements to speak only as of the time of such statements and does not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results.

Any public statements or disclosures by IFF following this report that modify or impact any of the forward-looking statements contained in or accompanying this report will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this report.



                   International Flavors & Fragrances Inc.
                        Consolidated Income Statement
                 (Amounts in thousands except per share data)
                                 (Unaudited)

                                                    Quarter Ended
                                                    December 31,

                                               2006        2007     % Change
    Net sales                               $514,318    $553,498         8%
    Cost of goods sold                       303,403     328,199         8%
    Gross margin                             210,915     225,299         7%
    Research & development                    48,031      53,898        12%
    Selling and administrative                90,559      98,354         9%
    Amortization                               3,709       2,212       -40%
    Restructuring and other charges            2,007           -
    Interest expense                           7,401      16,229       119%
    Other expense (income), net               (3,208)     (9,389)
    Pretax income                             62,416      63,995         3%
    Income taxes                              14,434      16,772        16%
    Net income                                47,982      47,223        -2%

    Earnings per share - basic                 $0.54       $0.59         9%
    Earnings per share - diluted               $0.53       $0.58         9%

    Average shares outstanding
    (in thousands):
    Basic                                     89,416      80,550       -10%
    Diluted                                   90,602      81,694       -10%


                                                 Twelve Months Ended
                                                    December 31,

                                               2006         2007      % Change
    Net sales                              $2,095,390   $2,276,638        9%
    Cost of goods sold                      1,211,259    1,324,424        9%
    Gross margin                              884,131      952,214        8%
    Research & development                    185,692      199,023        7%
    Selling and administrative                351,923      375,287        7%
    Amortization                               14,843       12,878      -13%
    Curtailment Loss                                -        5,943
    Restructuring and other charges             2,680            -
    Interest expense                           25,549       41,535       63%
    Other expense (income), net                (9,838)     (11,136)
    Pretax income                             313,282      328,684        5%
    Income taxes                               86,782       81,556       -6%
    Net income                                226,500      247,128        9%

    Earnings per share - basic                  $2.50        $2.86       14%
    Earnings per share - diluted                $2.48        $2.82       14%

    Average shares outstanding
    (in thousands):
    Basic                                      90,443       86,541       -4%
    Diluted                                    91,369       87,633       -4%



                   International Flavors & Fragrances Inc.
                     Consolidated Condensed Balance Sheet
                            (Amounts in thousands)
                                 (Unaudited)

                                                December 31,      December 31,
                                                    2006              2007

    Cash & cash equivalents                       $114,508          $151,471
    Short-term - investments                           604               604
    Receivables                                    405,302           450,579
    Inventories                                    446,606           484,222
    Other current assets                           112,783           109,489
       Total current assets                      1,079,803         1,196,365

    Property, plant and equipment, net             495,124           508,820
    Goodwill and other intangibles, net            745,716           732,836
    Other assets                                   158,261           261,656
    Total assets                                $2,478,904        $2,699,677

    Bank borrowings, overdrafts                    $15,897           $35,671
    Other current liabilities                      430,874           359,312
       Total current liabilities                   446,771           394,983

    Long-term debt                                 791,443         1,176,970
    Non-current liabilities                        335,522           510,527

    Shareholders' equity                           905,168           617,197
    Total liabilities and shareholders'
     equity                                     $2,478,904        $2,699,677



                   International Flavors & Fragrances Inc.
                     Consolidated Statement of Cash Flows
                            (Amounts in thousands)
                                 (Unaudited)

                                                December 31,      December 31,
                                                    2006               2007
    Cash flows from operating
     activities:
    Net income                                    $226,500           $247,128
    Adjustments to reconcile to net cash
     provided by operations:
      Depreciation and amortization                 89,733             82,788
      Deferred income taxes                        (12,423)            (6,343)
      Gain on disposal of assets                   (22,836)           (13,791)
      Equity based compensation                     18,185             18,168
      Curtailment loss                                 -                5,943
      Changes in assets and liabilities
         Current receivables                       (27,153)           (32,974)
         Inventories                                 9,492            (12,406)
         Current payables                           38,087             22,298
         Changes in other
          assets/liabilities                       (37,966)             3,251
    Net cash provided by operations (1)            281,619            314,062

    Cash flows from investing
     activities:
      Net change in short-term
       investments                                    (240)              (311)
      Additions to property, plant and
       equipment                                   (58,282)           (65,614)
      Net, purchase of investments                 (17,355)            (2,699)
      Proceeds from disposal of assets              27,235             16,959
    Net cash used in investing
     activities                                    (48,642)           (51,665)

    Cash flows from financing
     activities:
      Cash dividends paid to
       shareholders                                (67,381)           (76,600)
      Net change in bank borrowings and
       overdrafts                                  (48,714)          (129,648)
      Proceeds from long-term debt                 373,637            498,569
      Repayments of long-term debt                (499,300)               -
      Proceeds from issuance of stock
       under stock plans                           110,867             50,116
      Excess tax benefits on stock
       options exercised                             4,653              6,568
      Purchase of treasury stock                  (270,998)          (577,001)
    Net cash used in financing
     activities                                   (397,236)          (227,996)

    Effect of exchange rates changes on
     cash and cash equivalents                       6,222              2,562

    Net change in cash and cash
     equivalents                                  (158,037)            36,963

    Cash and cash equivalents at
     beginning of year                             272,545            114,508

    Cash and cash equivalents at end of
     period                                       $114,508           $151,471

    (1) Operating cash flows for 2006 increased by $18.7 million from the
        amount reported in 2006 as a result of including the purchase of
        investments of $17.3 million in investing activities and $1.4 million
        of deferred financing costs in financing activities.



                   International Flavors & Fragrances Inc.
                          Business Unit Performance
                            (Amounts in thousands)
                                 (Unaudited)

                                      Three Months Ended December 31, 2007
                                                          Global
      (Dollars in thousands)        Flavor    Fragrance  Expenses Consolidated

      Net sales                    $253,138    $300,360   $  -       $553,498

      Operating profit              $41,770     $36,892   $(2,065)     76,597

      Interest expense                                                (16,229)
      Other income (expense), net                                       3,627
      Income before taxes on
       income                                                         $63,995


                                      Three Months Ended December 31, 2006
                                                          Global
      (Dollars in thousands)        Flavor    Fragrance  Expenses Consolidated

      Net sales                    $218,611    $295,707   $  -       $514,318

      Operating profit              $30,952     $47,054   $(3,747)     74,259

      Interest expense                                                 (7,401)
      Other income (expense), net                                      (4,442)
      Income before taxes on
       income                                                         $62,416



                   International Flavors & Fragrances Inc.
                          Business Unit Performance
                            (Amounts in thousands)
                                 (Unaudited)

                                      Twelve Months Ended December 31, 2007
                                                          Global
      (Dollars in thousands)       Flavor    Fragrance   Expenses Consolidated

      Net sales                  $1,005,544  $1,271,094  $   -     $2,276,638

      Operating profit             $187,275    $209,812  $(26,976)    370,111

      Interest expense                                                (41,535)
      Other income (expense),
       net                                                                108
      Income before taxes on
       income                                                        $328,684


                                       Twelve Months Ended December 31, 2006
                                                          Global
      (Dollars in thousands)        Flavor   Fragrance   Expenses Consolidated

      Net sales                    $894,775  $1,200,615  $   -     $2,095,390

      Operating profit             $153,099    $212,240  $(18,485)    346,854

      Interest expense                                                (25,549)
      Other income (expense), net                                      (8,023)
      Income before taxes on
       income                                                        $313,282



                   International Flavors & Fragrances Inc.
                     Regulation G Reconciliation Schedule
                      Fourth Quarter and Full Year 2007

                                                        2006
                                          Fourth Quarter     Full Year
    EPS Reported                             $0.53             $2.48
    Restructuring Charges                     0.02              0.02
    Insurance Recovery                                         -0.03
    Other Income                             -0.06             -0.11
    Tax Adjustment (1)                       -0.04             -0.04
        EPS as Adjusted                      $0.45             $2.32


                                                        2007
                                                Q4            Full Year
    EPS Reported                             $0.58             $2.82
    Loss on Curtailment                                         0.04
    Gain on Asset Sales                      -0.05             -0.09
    Tax Adjustment (1)                                         -0.11
        EPS as Adjusted                      $0.53             $2.66

    (1) Favorable tax ruling benefit

This supplemental schedule provides adjusted non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP

These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company believes that it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period to period comparative basis, the relative impact of restructuring charges and the other income that primarily consists of gains on asset disposals, the benefit of tax rulings relating to 2006 and prior years, and the pension curtailment charge. The adjusted information is intended to be more indicative of the Company's core operating results.

SOURCE International Flavors & Fragrances Inc.
CONTACT: Investor: Yvette Rudich, Director of Corporate Communications,
+1-212-708-7164, Media: Melissa Sachs, Manager, Corporate Communications, +1-
212-708-7278, both of International Flavors & Fragrances Inc./

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