BPI Packaging Technologies Inc. announces nine month results.

NORTH DIGHTON, Mass.--(BUSINESS WIRE)--Jan. 16, 1996--BPI Packaging Technologies Inc. ("BPI") (NASDAQ NMS: "BPIE (Common Stock), BPIEZ (B-Warrants); Nasdaq: BPIEP (Preferred Stock)"), today announced operating results for the third quarter and nine months ended Nov. 24, 1995.

For the third quarter of fiscal 1996, sales increased 31 percent to $8,073,432 as compared to sales of $6,152,176 a year earlier. The net loss was $673,806, or 6 cents per share for the third quarter of fiscal 1996 compared to a net loss of $343,502, or 3 cents per share a year earlier. The net loss includes approximately 4 cents per share from a reduction in margin on the sale of finished goods at reduced selling prices and an inventory write down totalling $440,000, both resulting from declining raw material prices.

For the first nine months of fiscal 1996 sales increased 19 percent to $21,942,420 as compared to sales of $18,499,363 a year earlier. The net loss was $770,996, or 7 cents per share for the first nine months of fiscal 1995, as compared to a net loss of $258,011, or 2 cents per share a year earlier. The net loss includes approximately 4 cents per share from a reduction in margin on the sale of finished goods at reduced selling prices and an inventory write down totalling $440,000, both resulting from declining raw material prices.

Dennis Caulfield, president and chief executive officer, stated, "During the third quarter, three factors significantly impacted results. First, BPI had allocated more than 25% of its manufacturing capacity to a new program to manufacture a proprietary bag product for use by a major retail chain. The program was cancelled resulting in this capacity being partially replaced by lower margin traditional t-shirt sack business. The impact of the cancellation of the program is expected to continue through the fourth quarter. Second, the net loss includes approximately $.04 per share from a reduction in margin on the sale of finished goods at reduced selling prices and an inventory write down totalling $440,000, both resulting from declining raw material prices. Lastly, for the third quarter of Fiscal 1996 net interest expense was $190,852 compared to $71,135 a year earlier. The increase resulted from increased borrowing for inventory and equipment purchases."

Caulfield continued, "Management anticipated that the fourth quarter of Fiscal 1996 would be a transition quarter from about a breakeven level of operation to profitability. However, because of the cancellation of the program in the third quarter, it is now anticipated that this transition will occur in the first quarter of Fiscal 1997."

Caulfield added that, "BPI's strategy is to replace the lower margin traditional plastic grocery carryout bag with higher margin proprietary bag and in-store advertising and promotion products. BPI made good progress towards this objective in the third quarter of Fiscal 1996 and sales of proprietary bag products were at an annual rate of $7.9 million compared to an annual rate of $5.2 million a year earlier, an increase of 52%. It is anticipated that proprietary bag products will show even stronger performance in Fiscal 1997."

Caulfield concluded that, "BPI introduced the Produce Profit Builder and Floor Focus Ad-Tile(TM) advertising and promotion products in the third quarter. The Produce Profit Builder Program has been well received, and in-store market tests have been successful in Canada and are planned in two leading grocery chains beginning in the fourth quarter of Fiscal 1996. The Floor Focus Ad-Tile(TM) Program rollout is also planned to begin at Winn-Dixie in the fourth quarter of Fiscal 1996 with several major national brand advertisers. The progress for both of these programs has been excellent."

BPI Packaging Technologies Inc. is a leading manufacturer of traditional plastic grocery carryout bags, referred to as t-shirt sacks, proprietary t-shirt bags, and proprietary in-store advertising and promotion products. -0-

                    BPI Packaging Technologies Inc.
                  Consolidated Statement of Operations

                                        Three Months Ended
                                  Nov. 24, 1995     Nov. 25, 1994
                                  _____________     _____________
                                            (unaudited)

Net sales                          $ 8,073,432       $ 6,152,176

Net loss (1)                       $  (673,806)      $  (343,502)

Net loss per share                 $      (.06)      $      (.03)

Weighted average common shares
 outstanding for the three months   11,781,314        11,580,561

(1)  The net loss includes approximately 4 cents per share from a
     reduction in margin on the sale of finished goods at reduced
     selling prices and an inventory write down totalling $440,000,
     both resulting from declining raw material prices.

                                         Nine Months Ended
                                  Nov. 24, 1995     Nov. 25, 1994
                                  _____________     _____________
                                            (unaudited)

Net sales                          $21,942,420       $18,499,363

Net loss (2)                       $  (770,996)      $  (258,011)

Net loss per share                 $      (.07)      $      (.02)

Weighted average common shares
 outstanding for the nine months    11,745,801        10,939,390

(2)  The net loss includes approximately 4 cents per share from a
     reduction in margin on the sale of finished goods at reduced
     selling prices and an inventory write down totalling $440,000,
     both resulting from declining raw material prices.

CONTACT: BPI Packaging Technologies Inc., North Dighton

Dennis N. Caulfield, 508/824-8636

or

Tower Research Associates, Cleveland

Arthur Stupay, 216/861-6950