BPI Packaging Technologies Inc. reports first quarter loss but expects profit for Fiscal 1997.

N. DIGHTON, Mass.--(BUSINESS WIRE)--July 3, 1996--BPI Packaging Technologies Inc. ("BPI") (NASDAQ/NMS: BPIE (Common Stock)), today announced operating results for the first quarter and three months ended May 24, 1996.

Dennis N. Caulfield, president and chief executive officer, stated, "BPI reported sales of $6,514,734 for the first quarter of Fiscal 1997, ended May 24, 1996, as compared to sales of $6,464,213 for the first quarter of Fiscal 1996, ended May 26, 1995, an increase of 1 percent. The net loss was $972,970, or 8 cents per share for the quarter compared to net income of $111,729, or 1 cent per share for the same period last year. The net loss included a non-cash charge for depreciation and amortization of $823,380, or 7 cents per share. The net loss was caused primarily by an unfavorable product mix and a continuing decline in the unit sales price for the traditional grocery carryout bag.

"Approximately 50 percent of the loss occurred in March, and the losses for April and May were progressively lower. Sales for June were approximately $3.5 million and preliminary estimates indicate improved operating results for the month. Management expects that this fiscal year will be profitable based on anticipated increases in sales of proprietary bag and in-store advertising and promotion products.

"The first quarter suffered from the cancellation of a proprietary bag program by a major retail chain, in the third quarter of Fiscal 1996, to which BPI had allocated more than 25 percent of its manufacturing capacity. The cancellation of this program materially affected sales, margins and product mix in the first quarter. The manufacturing capacity released by the program cancellation was not completely utilized in the first quarter, resulting in excess capacity, and was partially replaced with lower margin traditional grocery carryout bags.

"At the end of the first quarter of Fiscal 1997, cash and borrowing availability under BPI's bank lines of credit totaled $2,243,380. BPI plans to invest in new equipment and marketing programs based on its Fiscal 1997 business plan. Management expects that the total of cash and borrowing availability will increase, even if operations are only at break-even, for Fiscal 1997.

"In the first quarter of Fiscal 1997, both Floor Focus Ad-Tile(TM) and Fresh Focus Cartridge Talker(TM) in-store advertising and promotion products made good progress. One hundred nine Winn-Dixie Supermarkets, of which 10 stores will be control stores, were installed with Floor Focus Ad-Tile(TM) with national brand advertisers which include Nestle, Campbell Soup, Hebrew National, and H.J. Heinz. The Fresh Focus Cartridge Talker(TM) began an in-store test in the produce sections of 10 Stop & Shop Super Stores at the beginning of the second quarter, and additional in-store tests are planned at several leading U.S. supermarket chains during this quarter."

Caulfield concluded, "BPI management is optimistic about the prospects for Fiscal 1997 and 1998." -0-

Certain statements contained in this press release are not based on historical facts, but are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, that are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in such statements. The company's ability to achieve the results anticipated in any forward-looking statements is subject to certain risks and uncertainties, including, but not limited to, the general economy, product demand, market acceptance of products, fluctuations in operating results, competition, continued availability of capital and financing, and other factors affecting the company's business beyond the company's control. -0-

                    BPI PACKAGING TECHNOLOGIES INC.
                  CONSOLIDATED STATEMENT OF OPERATIONS

                                    THREE MONTHS ENDED
                               May 24, 1996    May 26, 1995
                               ____________    ____________
                                       (unaudited)

Net sales                      $ 6,514,734     $ 6,464,213

Net (loss) income              $  (972,970)(a) $   111,729

Net (loss) income per share    $      (.08)(a) $       .01

Weighted average common
 shares outstanding for the
 three months                   12,192,942      12,216,997

(a) Includes a non-cash charge for depreciation and amortization of
$823,380, or $0.07 per share.

                                 SUMMARY BALANCE SHEET

                               May 24, 1996    Feb. 23, 1996
                               ____________    ____________
                               (unaudited)

Cash                           $ 1,783,380     $   109,093
Other current assets             8,334,417       7,190,987
                               ____________    ____________
 Total current assets           10,117,797       7,300,080
Property and equipment          24,506,626      24,314,649
Other assets                     3,543,844       3,663,246
                               ____________    ____________
 Total assets                  $38,168,267     $35,277,975

Current liabilities            $10,693,629     $10,067,947
Capital lease obligations        5,390,364       5,441,057
Equity                          22,084,274      19,768,971
                               ____________    ____________
 Total liabilities & equity    $38,168,267     $35,277,975

CONTACT: BPI Packaging Technologies Inc., N. Dighton

Dennis N. Caulfield, 508/824-8636

or

Tower Research Associates, Cleveland

Arthur Stupay, 216/861-6950