Avery Dennison Revises Third Quarter Earnings Outlook; Company to Address Analysts and Investors at Chemical Industry Conference Today.

Business Editors

PASADENA, Calif.--(BUSINESS WIRE)--Sept. 18, 2003

Avery Dennison Corporation (NYSE:AVY) will provide an overview of its strategies for long-term growth at the Credit Suisse First Boston 16th Annual Chemical Conference in New York today. In anticipation of the presentation, the Company announced that it now forecasts that earnings per share could be approximately $0.05 below the low end of its previous expectation for the third quarter of 2003. In July, the Company had projected third quarter earnings of $0.70 to $0.75 per share.

In his presentation today, Daniel R. O'Bryant, senior vice president and chief financial officer of Avery Dennison, will profile the Company's key strategies, underlying growth drivers, and initiatives to accelerate top-line growth. O'Bryant also will briefly address near-term business trends which are expected to impact results for the third quarter.

Avery Dennison said that underlying business conditions have not improved measurably compared to the second quarter, and in fact have weakened in its retail information services and pressure-sensitive adhesive materials businesses. In particular, pricing pressures in these businesses, already felt in the second quarter, have continued in the third quarter. In addition, while it is anticipated that total third quarter sales for the Company's North American office products business will meet expectations, profits are expected to fall short due to unfavorable product mix and higher-than-expected service costs required to fill unusually large orders placed at the start of the quarter.

"Despite some external indicators of a strengthening global economy, the benefits have come too late in the quarter to offset the effects of weak demand and competitive market conditions which have had an impact on the Company over the past six months," said O'Bryant. "We have recently seen orders pick up in a number of our businesses around the world, led by our pressure-sensitive adhesive materials business in North America, and expect continued improvement in demand trends as economic conditions strengthen. In the meantime, we are moving aggressively to reduce costs and improve our productivity."

O'Bryant's presentation to analysts and investors, which will be broadcast live over the Internet, will highlight key long-term growth drivers for the Company, including the rapidly expanding markets of Asia, Latin America, and Eastern Europe. O'Bryant will also provide an update on Avery Dennison's aggressive program to accelerate sales growth at operations throughout the Company.

"Our underlying business fundamentals today are strong," said O'Bryant. "We continue to see strong growth in our pressure-sensitive adhesive materials business in Asia. With our new programs to accelerate top-line growth throughout the Company, along with substantial cost savings ahead from the completion of the Jackstaedt integration and other productivity improvement efforts, we are well positioned to create long-term value for our shareholders in the years to come."

Avery Dennison is a global leader in pressure-sensitive technology and innovative self-adhesive solutions for consumer products and label materials. Based in Pasadena, Calif., the Company had 2002 sales of $4.2 billion. Avery Dennison develops, manufactures, and markets a wide range of products for consumer and industrial markets, including Avery-brand office products and graphics imaging media, Fasson-brand self-adhesive materials, peel-and-stick postage stamps, reflective highway safety products, automated retail tag, labeling and branding systems, and specialty tapes and polymers.

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 price and availability of raw materials; foreign exchange rates; worldwide and local economic conditions; selling prices; impact of legal proceedings, including the U.S. Department of Justice criminal investigation into competitive practices in the label stock industry and any related proceedings or lawsuits pertaining to the subject matter; impact of Severe Acute Respiratory Syndrome (SARS) on the economy, the Company's customers, and business; financial condition and inventory strategies of customers; acceptance of new products; fluctuations in demand affecting sales to customers; and other matters referred to in the Company's SEC filings.

To listen to a live Webcast of the presentation hosted by Credit Suisse First Boston, visit www.investors.averydennison.com for a link and instructions. The presentation is scheduled to begin at approximately 10:00 a.m. (Eastern time) today. In addition, an audio replay of the presentation will be available approximately 24 hours following its conclusion and will be accessible for a total of 30 days.