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BALL CORPORATION SPIN-OFF WILL CREATE NEW COMPANY FROM PRESENT OPERATIONS

 BALL CORPORATION SPIN-OFF WILL CREATE NEW COMPANY
 FROM PRESENT OPERATIONS
 MUNCIE, Ind., Aug. 19 /PRNewswire/ -- Ball Corporation (NYSE: BLL) today said its board of directors had approved, in principle, the spin- off to Ball shareholders of the stock of a newly formed subsidiary consisting of certain operations outside of the company's core businesses of glass and metal packaging, and aerospace. The spin-off, in the form of a distribution of a dividend, would create a publicly held company with annual sales exceeding $250 million.
 The new company would consist of the consumer products (home food preservation products), zinc products, metal decorating and service and industrial systems divisions and plastics businesses, consisting of Unimark plastics (injection molded products), plastics (thermoformed products) and Plastic Packaging Products Company (coextruded high- barrier products). It would employ approximately 1,500 people at 11 sites in the United States and Puerto Rico, with headquarters in Muncie.
 The distribution of stock to shareholders is subject to board approval of final terms and conditions and the receipt of a ruling from the Internal Revenue Service that the transaction would be tax-free to the company and its shareholders.
 The company expects that if approved, the distribution will occur during the first quarter of 1993. Each holder of Ball common stock on the record date will receive a proportionate common stock ownership in a new independent public company comprised of the included businesses.
 William L. Peterson, vice chairman and chief financial officer of Ball Corporation, has been designated president and chief executive officer of the new company. Also joining the new company's management team from Ball would be John H. Snyder, group vice president, diversified products, who would serve as senior vice president and chief operating officer; Thomas B. Clark, vice president, communications, planning and development, who would be senior vice president and chief financial officer; and William L. Skinner, director, corporate development, who would be senior vice president, administration.
 To fill the positions vacated by this action, the directors also elected R. David Hoover as senior vice president and chief financial officer of Ball and Raymond J. Seabrook, who will report to Hoover, as vice president and treasurer of Ball. Additionally, he will assume the responsibilities for planning and development. Prior to their election to these positions, Hoover was vice president and treasurer of Ball and Seabrook was senior vice president and chief financial officer of Ball's Canadian subsidiary, Ball Packaging Products Canada, Inc.
 Delmont A. Davis, Ball's president and chief executive officer, said the spin-off of the businesses should benefit both Ball and the new company. "Our action today is based on a strategic plan approved by our board of directors more than a year ago," he said. "The spin-off is a move in the direction of focusing on Ball's core businesses. This strategy also calls for Ball to focus on its large core businesses of metal and glass packaging and aerospace." Ball's acquisitions of 100 percent of the stock in the company's glass container and Canadian metal packaging joint ventures were the first moves in establishing larger core businesses, followed by the February acquisition of additional glass container manufacturing capacity. Ball recently announced that it is negotiating to acquire a portion of Eastman Kodak's (NYSE: EK) federal systems division, which it says would be an excellent complement to its existing aerospace business.
 Davis said the new company, whose management would be highly entrepreneurial, will begin operation with an excellent group of businesses. The new company will include businesses with good financial performance characteristics and with solid positions in the markets they serve. "The employees will be in on the ground floor of a new company in control of its own destiny. We believe this new organization, anchored by strong senior management from Ball, will enhance the motivation of management and employees to grow and create added value.
 "This is an important and exciting development in the history of Ball
Corporation and an exciting beginning for the new company," he said. "The businesses which will form the new company are highly regarded for the role they have played in the history and development of Ball. Collectively, they have a promising future as an independent entity."
 As a result of today's action, the business units which are the subject of the spin-off will be classified as a discontinued business in Ball's future financial reporting.
 Ball Corporation reported 1991 sales of $2.3 billion.
 -0- 8/19/92
 /CONTACT: Larry Miller, 317-747-6170, or 317-286-5856 after hours; or Brad Wilks, 317-747-6165, or 317-282-6198 after hours; both of Ball Corporation/
 (BLL) CO: Ball Corporation ST: Indiana IN: SU:


KK -- CL004 -- 1206 08/19/92 08:32 EDT
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Publication:PR Newswire
Date:Aug 19, 1992
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