I read this article awhile back stating that it wasn't a reboot or part of the main timeframe of the games but then the ICA trailer came out today clearly referencing the last games so what the hell is it? Here's the article I mentioned: http://www.siliconera.com/2012/01/18/hitman-absolution-isnt-a-reboot-but-not-part-of-the-series-timeline-either/

The next article already mentions the connections http://www.siliconera.com/2012/02/21/why-does-agent-47-assassinate-diana-in-hitman-absolution/

So it seems like a proper sequel storywise.

Originally it was a producer talking, so it's entirely likely he was a bit out of touch with the game story.

On the gameplay side of things it can be seen as a reboot.  If they are acknowledging the existence of Diana(as well as her connection with agent 47) then it is set after Blood Money since she was alive in all of the prior entries.  That would also make it a sequel.  
So... Both?

The "it's not set in any specific timeline" quote seems like a cop-out just in case they do something to upset fans with the plot in Absolution. To me it sounds like the game takes place after Blood Money but they just wanted to reserve the right to pretend Absolution didn't happen if people really don't like how Absolution turns out.

I mean, I'm not a huge follower of the games' plot, but the basic up-front premise being that you start the game by killing the only other named character that matters seems like it might upset longtime fans? (I don't know, I never played Hitman for the story.) So the producer was probably just trying to cover their collective asses if they want to continue with certain elements of Absolution but magically bring a character back in a sequel or something.

TL;DR: It sounds like the producer just didn't want to commit to anything because he didn't want to risk souring public opinion so far out from release, while still making the game sound fresh and new.

@Koobz: thats the feeling I get but it just seemed like a stupid thing and it threw me off when I seen the trailer today after reading the aricle I mentioned