Avery Dennison Outlines Dynamic Growth Strategy and Confirms First-Quarter Outlook.

PASADENA, Calif.--(BUSINESS WIRE)--March 10, 1999--Avery Dennison Corp.(NYSE:AVY)(PSE:AVY) Wednesday outlined its strategic platform for growth, as well as providing an update on its previously announced restructuring program at a meeting of securities analysts hosted by the company.

In addition, Avery Dennison confirmed earnings expectations for the first quarter of 1999.

"We expect first-quarter earnings-per-share growth to be in the high single-digit range, before a one-time restructuring charge, and will accelerate throughout the year as the benefits from our restructuring program are realized," said Philip M. Neal, president and chief executive officer of Avery Dennison.

"We are highly optimistic about our future and excited about the opportunities ahead of us," Neal said. "Having just completed another record year of financial results in 1998, our absolute focus is on growth, further expanding our global presence, maintaining our industry leadership in technology, and sustaining our financial strength."

Neal summarized the company's key achievements in 1998, including record sales, net income, earnings per share and returns, including return on equity and return on total capital.

Neal also reported on the progress of the major restructuring program that was announced in late January to realign the company's cost structure: "Our restructuring program is being implemented and is on target to achieve double-digit earnings growth in 1999 and beyond, before the effects of the one-time charge in the first quarter."

According to Neal, the restructuring moves are expected to result in cost savings of $58 million to $62 million annually when fully implemented.

"Our key financial goals for the future are to achieve faster top-line growth, maintain and increase margins and returns, and grow earnings per share at double-digit rates, resulting in significant increases in shareholder value," said Neal.

"We have solid growth strategies in place that include a stepped-up acquisition program, further international expansion, aggressive new product development and leveraging our competitive advantages and global brand power," Neal added.

Neal also provided an overview of the key growth drivers for the company's core office products and pressure-sensitive materials businesses. He cited the growth in personal computers and laser and ink-jet printers as providing superior opportunities for the office products business.

A variety of global trends that provide robust growth potential for the company's pressure-sensitive materials business include the increased focus on attractive labels as a critical aspect of the marketing effort for consumer products, and the exploding use of bar code technology for identifying and tracking purposes.

Avery Dennison's senior management team participated in the day-long meeting with analysts, profiling the strengths of each of the company's core businesses.

Avery Dennison develops, manufactures and markets innovative self-adhesive solutions for consumer products and label systems.

Based in Pasadena, the company makes a wide range of products for consumer and industrial markets, including Avery-brand office products, Fasson-brand self-adhesive materials, peel-and-stick postage stamps, battery labels, automated retail tag and labeling systems, and specialty tapes and chemicals.

Approximately 16,100 employees in 200 manufacturing and sales facilities produce and sell Avery Dennison products in 89 countries.

Forward-Looking Statements 

Certain information presented in this news release may constitute "forward-looking" statements. These statements are subject to certain risks and uncertainties. Actual results and trends may differ materially from historical or expected results depending on a variety of factors, including, but not limited to, availability of raw materials, foreign exchange rates, worldwide economic conditions, fluctuations in consumer demand affecting production and inventory levels at customer companies, and other matters referred to in the company's SEC filings.