Freed British Sailors Leave Iran
The 15 captured British sailors are in flight back to Britain.
Mr Ahmadinejad said no concessions had been made by the British government to secure the releases, but that Britain had pledged "that the incident would not be repeated".
Later, television pictures showed the president smiling, chatting and shaking hands with the crew at his palace in Tehran. An unidentified crew member said: "I'd like to say that myself and my whole team are very grateful for your forgiveness. I'd like to thank yourself and the Iranian people... Thank you very much, sir."
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The BBC's Frances Harrison in Tehran said speculation was likely to continue over whether the release had anything to do with developments in Iraq.
There, an Iranian envoy has reportedly been given access to five Iranians captured by US forces and a kidnapped diplomat was released on Tuesday.
Here's a transcript of Iranian President Mahmoud Ahmadinejad's news conference. It begins:
"On the occasion of the birth anniversary of the great prophet of Islam, and on the occasion of Easter and Passover, I would like to announce that the great nation of Iran, while it is entitled to put the British military personnel on trial, has pardoned these 15 sailors and gives their release to the people of Britain as a gift.
"I would like Mr Blair's government not to punish the sailors for acknowledging and telling the truth.
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