Tefron Ltd, a key player in the intimate apparel market, said first-quarter sales and income were boosted by diversification of product lines.

First-quarter sales rose 7.6 per cent to $52.6 million, compared to sales of $48.9m in the first quarter of 2004.

Net income for the first quarter increased to $1.2m from net income of $106,000 a year ago.

Intimate apparel sales for the quarter totalled $24.3m compared to $32.1m last year, while active wear saw sales of $12.0m compared to $4.6m.

Swimwear sales totalled $8.2m in the first quarter compared to $8.5m last year, and health care product sales were $8.2m compared to $8.5m a year ago.

Yos Shiran, chief executive officer, said that the company continued to see further benefits from the strategies it began to implement two years ago.

Shiran added: "Our improved results are accompanied by a significant diversification in our product lines and a significant change in our customer base which is comprised of fewer customers who suit our strategy."

Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear that is sold throughout the world by name-brand marketers such as Victoria's Secret, Target, Warnaco/Calvin Klein, The Gap, Banana Republic, Mervyn's, Nike, Patagonia, Reebok and Adidas, as well as other American retailers and designer labels.