Net earnings and operating cash flow increased 169%(1) and 219%, respectively

TORONTO, ONTARIO -- (Marketwire) -- 08/08/08 -- IAMGOLD Corporation (TSX: IMG)(NYSE: IAG)(BOTSWANA: IAMGOLD) -

For a full explanation of results, the unaudited interim Consolidated Financial Statements, Management Discussion & Analysis, and mine statistics, please see the Company's website, www.iamgold.com

"We continue to deliver growth in revenues, net earnings and cash flow as reported during the current quarter. Our cash costs and increased production guidance demonstrate our focus on cost improvement and production initiatives," stated Joseph Conway, President & CEO.

All amounts are expressed in US dollars, unless otherwise indicated.

HIGHLIGHTS

- Net earnings increased by 169%(1) to $33.3 million or $0.11 per share in the second quarter of 2008 compared to adjusted net earnings of $12.4 million or $0.04 per share in the second quarter of 2007.(2)

- Significant increase in the operating cash flow to $44.9 million in the second quarter of 2008, compared to $14.1 million in the second quarter of 2007.

- Gold production in the second quarter of 2008 was 255,000 ounces at an average cash cost(2) of $472 per ounce.

- Production outlook for 2008 increased to 950,000 ounces of gold and at a revised cash cost of $485-$495 per ounce.

- Exploration and development expenditures were $17.4 million during the second quarter of 2008.

- Cash and gold bullion position of $295.7 million (valuing gold bullion at market) continues to be strong.

- Continued growth in operating performance and contribution of the Niobec mine.

(1) Increase was calculated by comparing the current quarter net earnings to adjusted net earnings for the second quarter of 2007 which exclude the $93.7 million impairment charge related to the Mupane mine.

(2) Adjusted net earnings, and Cash cost are non-GAAP measures. Please refer to the Supplemental information attached to the MD&A for reconciliation to GAAP.

ACHIEVEMENTS

- The Company continued to focus its efforts on significantly accelerating the Westwood Project. As a result, "Warrenmac", a near surface zone within the Westwood resource, could be producing as early as the second half of 2010. In July 2008, the Company announced a 5% increase in contained gold ounces in the Westwood inferred resource.

- The Mupane gold mine transitioned to owner-mining in July 2008, which is expected to lower cash costs by at least $40 per ounce compared to the previous life-of-mine plan. As a result, the reserves at Mupane were increased by 64,000 ounces and the life of the operation was extended by four to six months to mid 2012.

- The Yatela mine engaged a new mining contractor to begin operations during the third quarter of 2008, which is expected to lower cash costs by approximately $40 per ounce compared to current operating costs.

- The Company continues to increase the value of the Niobec mine (a non-gold asset), with the expected completion of an $8.0 million paste backfill plant by mid 2010. This project could double existing niobium reserves and reduce future development and operating costs.

- The Company prepared and published its first Health, Safety & Sustainability Report which was guided by the Global Reporting Initiative.

- The Company took a significant step towards achieving its goal of becoming a global leader in sustainable development by launching its comprehensive Zero Harm program to all employees.

"We continue to make progress on increasing our reserves and production, as well as containing and reducing costs in this challenging environment of higher energy costs while continuing to support and surpass industry standards towards responsible mining," stated Joseph Conway, President & CEO.

RECENT EVENTS

- In July 2008, the Company acquired the participation royalty for the Doyon/Westwood property from Barrick Gold Corporation for cash consideration of $13.0 million. The transaction eliminates the royalty obligation on the Doyon mine and any royalty costs on future production at Westwood. At current gold prices, this transaction is estimated to reduce cash costs at the Doyon Division by approximately $80 per ounce and increase depreciation by approximately $80 per ounce for the remainder of the year.

- In July 2008, the Company released its pre-feasibility study for the Quimsacocha project with encouraging results. The project is expected to produce an average of 202,000 ounces of gold per year at an average cash cost (before royalties and profit sharing) of $272 per ounce during its projected life of seven and half years with an estimated payback of 3 years.

- Following the French Government's denial of the permit for the construction of Camp Caiman and the declaration of the need to review the existing mining code, the Company has filed the appropriate legal claims to recover the damages, which include the impact of the decline in the Company's market capitalization. The Company continues to work with the French mining and environmental administration to ensure that the new mining framework that is currently being developed provides a basis for the highest standards for responsible mining that is economically viable.

- In July 2008, the Company announced the discovery of multiple zones of significant gold mineralization at its wholly-owned Boto Property in Senegal, West Africa.

"We continue to pursue and develop our existing projects. Our aggressive development of Westwood, the recent positive results from the pre-feasibility study for Quimsacocha, and the discovery of significant gold mineralization at the Boto project demonstrate strong opportunities for us," stated Joseph Conway, President & CEO.

COST CONTAINMENT AND PRODUCTION INITIATIVES

The Company is implementing various cost and production initiatives that are currently, or will have, a positive impact on cash costs in the future:

- At Rosebel, additions were made to the mining fleet to increase mine production, and reduce maintenance cost and fuel consumption. The mine also concluded a one-month test utilizing caustic soda instead of lime as a pH modifier in the mill, which showed significant potential for improving mill recovery.

The $44.4 million mill expansion and optimization projects are expected to be completed as scheduled by the fourth quarter of 2008 and is expected to increase gold production to a range of 300,000 to 305,000 ounces.