BPI Packaging Technologies Inc. reports third quarter and nine months results.

N. DIGHTON, Mass.--(BUSINESS WIRE)--Jan. 3, 1997--BPI Packaging Technologies Inc. ("BPI")(NASDAQ/NMS: "BPIE (Common Stock)"), today announced that its net loss was reduced by $1,093,674 from the second quarter.

Also, sales of proprietary bag and film products showed impressive sales growth in the third quarter of Fiscal 1997, and increased 31 percent over the third quarter of Fiscal 1996 to $3,228,335, a record high 37 percent of sales.

Dennis N. Caulfield, chairman and chief executive officer, stated, "The sharp gain in proprietary sales was less than planned because shipments of plastic film products which were expected to start at the beginning of the quarter did not begin until late in the quarter. Consequently, sales were less than planned and BPI did not achieve its goal of a profit for the third quarter. Nevertheless, its net loss was reduced by $1,093,674 from the second quarter after a non-cash expense of $859,406 for depreciation and amortization and Market Media Inc. expenses of $187,344."

Caulfield stated that "for the third quarter that ended Nov. 22, 1996, sales increased 9.5 percent to $8,840,916 from $8,073,432 for the same period a year earlier. The net loss was $651,391, or 5 cents per share, for the third quarter compared to a loss of $673,806, or 6 cents per share, a year earlier. While the loss in the third quarter of this year is comparable to the loss in the previous year, the results indicate a major improvement in proprietary product market penetration and profitability from the previous two quarters of Fiscal 1997. Importantly, in the third quarter, manufacturing productivity increased and proprietary products were a record high 37 percent of sales. It is expected that both of these trends will continue and further improve operating results in the fourth quarter and into Fiscal 1998."

Caulfield continued, "For the nine months of Fiscal 1997, BPI's sales were $24,670,990 or 12.4 percent ahead of last year's sales for the same period. The net loss was $3,369,426, or 27 cents per share, for the nine month period, compared to a net loss of $770,996, or 7 cents per share, a year earlier. For the nine months of Fiscal 1997, the non-cash expense of depreciation and amortization was $2,506,266 compared to $1,820,156 in the same period a year earlier, and Market Media Inc. had expenses of $500,568 compared to zero in the same period a year earlier. A principal part of the net loss for the nine months was caused by competitive pricing and continuing low margins for the traditional grocery carry-out bag for the first nine months of Fiscal 1997. Also contributing to the loss was reduced manufacturing output in the first six months of Fiscal 1997 because of plant disruption from equipment installation and a successful research and development program."

Caulfield concluded, that "while BPI experienced a loss in the quarter, which was a disappointment, the quarter established a new positive trend in operating results. We are very optimistic because of the sharp growth and increased importance of proprietary products. The trend towards a higher percentage of proprietary product sales should continue in the fourth fiscal quarter and into Fiscal 1998, enabling BPI to report improved results despite low margins in the traditional grocery carry-out bag business." -0-

                BPI PACKAGING TECHNOLOGIES INC.
                      STATEMENTS OF INCOME

                                    Three Months Ended
                              Nov. 22, 1996    Nov. 24, 1995
                                       (Unaudited)

Net sales                      $ 8,840,916       $ 8,073,432
Net loss                          (651,391)         (673,806)
Net loss per share                   (0.05)            (0.06)
Weighted average common
 shares outstanding             12,475,138        11,781,314



                                    Nine Months Ended
                              Nov. 22, 1996    Nov. 24, 1995
                                       (Unaudited)

Net sales                      $24,670,990       $21,942,420
Net loss                        (3,369,426)         (770,996)
Net loss per share                   (0.27)            (0.07)
Weighted average common
 shares outstanding             12,298,560        11,745,801

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

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.

CONTACT: BPI Packaging Technologies Inc.

Dennis N. Caulfield, 508/824-8636

or

Tower Research Associates

Arthur Stupay, 216/861-6950