Imperial Ginseng Products Ltd. Reports First Half of 2005 Fiscal Year Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2005) - Imperial
Ginseng Products Ltd. (TSX VENTURE:IGP)

For the three and six-month periods ended on December 31, 2004, Imperial
Ginseng Products Ltd. (the "Company") reports revenues of $2.4 million
and $3.6 million, respectively, and net income of $0.16 million or $0.01
per share and $0.04 million or $0.00 per share, respectively. This
compares to revenues of $0.1 million and $0.3 million, net income of
$2.0 million or $0.10 per share and $2.2 million or $0.05 per share,
respectively, for the same periods in the prior year.

The Company's seeding, harvesting and processing activities progressed
smoothly and in accordance with its operating plan. By the end of the
second quarter of fiscal 2005, the Company had seeded over 180 acres of
ginseng in Ontario. The Company also completed harvesting and processing
of approximately 340,000 pounds of ginseng root. As previously reported,
the Company no longer has ginseng growing operations in British Columbia
and all ginseng root harvested in fiscal 2005 were premium grade Ontario
root.

Revenues for the three and six-month periods of $2.4 million and $3.6
million, respectively, represented sales from ginseng root harvested in
the Company's Ontario operation and from revenues generated from the
retail stores located in Kamloops and Vancouver, British Columbia. Gross
profit increased to $0.4 million and $0.6 million for the three and
six-month periods, respectively, compared to $0.1 million and $0.2
million for the three and six-month periods in the prior year. The
Company's general and administrative expenses decreased $0.1 million for
the three-month period ended December 31, 2004 compared to the previous
year, however remained unchanged for the six-month period ended December
31, 2004 compared to the same period in the prior year.

Similar to the prior year, the sales season in the first half of fiscal
2005 was slow, as anticipated. As of December 31, 2004, only
approximately 44% of the root had been sold, compared to approximately
47% of the root sold during the same period in the prior year. However,
the ginseng market has since picked up and as at the date of this press
release, more than 80% of the Company's 340,000 pounds of root harvested
have been sold. Despite the lower root prices realized by the industry
at the beginning of the selling season, management anticipates slightly
improving prices in the coming months.

As in the prior years, the Company sells ginseng root strictly on a
"payment-prior to-shipment" basis. The Company does not sell ginseng
root on consignment, nor does the Company grant payment terms to ginseng
buyers.

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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