Imperial Ginseng Products Ltd. Reports 3rd Quarter 2005 Fiscal Year Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2005) - For the
three and nine-month periods ended on March 31, 2005, Imperial Ginseng
Products Ltd. (TSX VENTURE:IGP)(OTCBB:IGPFF) (the "Company") reports
revenues of $2.5 million and $6.1 million, respectively, and net loss
$0.6 million or $0.04 per share and $0.05 million or $0.04 per share,
respectively. This compares to revenues of $1.1 million and $1.3
million, net income of $1.8 million or $0.20 per share and $4.0 million
or $0.25 per share, respectively, for the same periods in the prior
year.

During the nine-month period ended March 31, 2005, the Company sold
approximately 305,000 pounds of ginseng root, or approximately 90% of
the Company's fall 2004 harvest as well as approximately 40,000 pounds
root inventory from the prior year. The increase in revenue from the
prior period can be attributed to an increase in root harvested and sold
from the Ontario operation. During fiscal 2004, the Company harvested
the remaining acres at its British Columbia operation and wound down the
operation. Revenue and cash flows from root harvested during fiscal 2004
from the British Columbia operation were reported as discontinued
operations. On the other hand, revenues for the nine-months period ended
March 31, 2005 were entirely from sales from the continuing Ontario
operation.

Despite higher sales revenues, gross profit for the nine-month period
ended March 31, 2005 was lower than in the same period in the prior year
due to lower yield realized by the Company in fiscal 2005 as well as
lower root prices realized by the Company as a result of a slow market
and significantly higher Canadian dollar exchange rate.

General and administrative expenses decreased to $0.2 million and $0.7
million for the three and nine-month periods ended on March 31, 2005,
from $0.3 million and $0.9 million for the three and nine-month periods
ended in the prior year.

Notwithstanding the loss reported, the Company's financial strength
continued to improve. During the nine-month period ended March 31, 2005,
the Company's current ratio increased to 46:1 from approximately 8.4:1
on June 30, 2004. Debt to equity ratio also deceased to 0.03:1 from
0.09:1 on June 30, 2004.

Management believes that the ginseng market has already reached the
bottom and there are strong signs showing that the market demand is
strengthening. Consequently, management expects a price recovery for the
Company's fall 2005 production. The Company will continue to improve its
financial position through better quality control, cost conservation and
crop management.

This press release may contain forward-looking statements that reflect
the Company's current expectation regarding future events. The
forward-looking statements involve risks and uncertainties. Actual
events could differ materially from those projected herein and depend on
a number of factors including, but not limited to the success of the
Company's horticultural operations and the strength of the economies and
currencies of Asian countries. Investors should consult the Company's
ongoing quarterly filings, annual reports and Form 20-F for additional
information on risks and uncertainties relating to the forward-looking
statements. The corporation disclaims any obligations to update these
forward-looking statements.

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