BPI Packaging Technologies, Inc. Reports Year End Results and Announces Completion of Rights Offering.

Business/Technology Editors

NORTH DIGHTON, Mass.--(BUSINESS WIRE)--March 31, 2000

BPI Packaging Technologies, Inc. (the "Company") OTC BB:BPIE, a manufacturer of thin high molecular weight, high density polyethylene films and bags, today reported its year end results for the period ended December 31, 1999. Mr. James Koehlinger, the Company's Acting Chief Operating Officer, also announced that the Company successfully completed its rights offering for 15,000,0000 shares of its common stock.

The Company reported for the year ended December 31, 1999 total sales of $18,525,970 and a net loss of ($1,602,919) or a net loss of ($0.07) per share, after extraordinary income of $1,856,157, based on a weighted average of 23,242,165 shares outstanding. This compares to total sales of $10,382,819 and a net loss of ($3,239,213) or a net loss of ($0.16) per share based on a weighted average of shares outstanding of 20,849,356 for the year ended December 31, 1998.

"In summarizing 1999, our raw material prices increased by 60% from the prior year and given the competitive market conditions in the commodity T-shirt bag market, we were unable to pass along price increases to our customers. However, we were successful in overhauling and modernizing our production equipment and have spent a total of approximately $1,000,000 on upgrading existing machinery and buying additional pieces of equipment in preparation for increased sales from our film business. Together with its equipment suppliers, we have conducted very intensive training programs on the use of all major plant equipment," said Mr. Koehlinger.

Mr. Koehlinger added, "During the first quarter of fiscal year 2000, we have reduced costs and achieved higher productivity with conversion operations measured at the highest levels in the Company's history. The investment and training efforts now puts us in a position to focus fully on new business opportunities in its core competency markets to allow us to aggressively test market a number of brand-new products and to pursue new applications for its existing product lines."

Mr. Koehlinger concluded, "We are forecasting significant sales increases of our core products (i.e.,) Fresh-Sac(R), Handi-Sac(TM) and its film business for the fiscal year 2000; increased sales of our core products will increase gross profit margins."

The Company also completed its rights offering for 15,000,000 shares of common stock to its stockholders of record as of the close of business on December 2, 1999. Each non-affiliated stockholder of the Company received one right for each share of the Company's common stock, which it owned. Each of the rights entitled these stockholders to purchase 0.7 shares of common stock at $0.04 per share. Stockholders subscribed for more than the 15,000,000 shares offered in the rights offering and the oversubscription shares have been allocated as provided in the rights offering materials. "The gross proceeds of $600,000 received by the Company are being used as working capital and other corporate-related purposes," said Jim Koehlinger.

The Company converts commercially available high molecular weight, high density polyethylene resins into thin film, which is either sold directly into industrial or packaging applications or converted in-house into carryout bags of "T-shirt sack" design for supermarkets, convenience stores and other retail markets. The Company utilizes advanced, high quality extrusion, printing and bag making equipment, which was installed between 1990 and 1999.

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.