BPI Packaging Technologies, Inc. Announces Third Quarter Results.

NORTH DIGHTON, Mass.--(BUSINESS WIRE)--Nov. 16, 1999--

BPI Packaging Technologies, Inc. (the "Company") BPIE, a manufacturer of thin high molecular weight, high density polyethylene films and bags, today reported its third quarter results for the period ended September 30, 1999.

The Company reported sales of $5,183,632 for the third quarter ended September 30, 1999 and a net loss after extraordinary income of ($1,372,836) or a net loss of ($0.06) per share based on a weighted average of 22,359,512 shares of common stock outstanding. This compares to sales of $2,927,730 and a net income of 10,843 or $0.00 per share based on a weighted average of 21,755,874 shares of common stock outstanding for the same period ended September 30, 1998.

Peter Schulz, the Company's President, stated, "The disappointing results were mostly due to a temporary loss of productivity during the transition from three to four shifts in manufacturing. We clearly underestimated the difficulties of training new people on the job, while diluting the experienced employees from three to four shifts. Lower output rates and a significant increase in scrap were the consequence. In hindsight, we should have continued with three shifts for a longer period and trained the new employees before starting a fourth shift with so many untrained people. Strong sales demand for the Company's products caused us to take the risk of taking the leap in production before we were ready. Fortunately, most of the training is behind us. During the first three quarters of this year, production increased from a daily rate of 34,000 pounds to 58,000 pounds. In the fourth quarter, to date, production is averaging 74,000 pounds a day."

Peter Schulz also announced the completion of the Company's corporate restructuring. "Mr. Jay Shapiro joined the Company as its Vice President of Operations. Mr. Shapiro has over 15 years of experience in the production of high molecular weight high density, polyethylene films and bags. He is clearly the operations manager we were looking for since we started the search earlier this year. With this position filled, Dr. Richard Nurse is now free to focus on new products and process developments. With his unique talents and broad experience, Dr. Nurse will look to expand our sales with exciting new film applications."

Jim Koehlinger, the Company's Chief Financial Officer, added, "In addition to the productivity drop in the third quarter, the Company had its cost of materials increase by 60% over last year, some of which could not be transferred to our customers due to competitive pricing pressures. SG&A expense for the third quarter was 21% of sales compared to 33% of sales in the third quarter of 1998. Interest expense increased by $460,000 due to the conversion of operating leases to capital leases as a result of the Company's January 1999 financial restructuring."

For the nine months ended September 30, 1999, the Company reported sales of $12,655,596, up 67% over sales of $7,567,594 for the nine months ended September 30, 1998. Net loss before extraordinary income for the nine months ended September 30, 1999 was of ($2,471,466) compared to a net loss of ($2,760,450) for the comparable period in 1998.

The Company reported a net loss after extraordinary income of ($551,001), or ($0.03) per share, for the first nine months of 1999, compared with a loss of ($2,760,450), or ($0.13) per share, in the first nine months of 1998. Extraordinary income of $1,920,465 in the first nine months of 1999 was the result of the Company's January 1999 financial restructuring and the resulting discounts from settlements with unsecured creditors.

Statements included in this update that are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements, including, without limitation, those relating to the Company's future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors such as those relating to economic, competitive, governmental, technological and other risks and factors, identified from time to time in the Company's reports filed with the SEC.