Bemis Company Reports Higher Third Quarter Earnings.

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 22, 1998--Bemis Company, Inc. (NYSE-BMS) today reported that its third quarter diluted per share earnings rose 11% to $0.52 per share compared with $0.47 per share reported in the year earlier quarter. Net sales were $465.5 million, flat with the third quarter of last year. For the first nine months of 1998, earnings rose 10% to $1.49 per share compared with $1.36 per share in the first nine months of 1997 while net sales declined 2% to $1.39 billion compared with $1.42 billion last year.

Within the flexible packaging line of business, net sales of flexible plastic packaging grew 4% in the third quarter while profitability improved significantly due to higher unit volumes, manufacturing efficiencies, and reduced waste. Sales levels continue to be adversely affected by lower raw material prices which reduce selling prices, although margins remain largely unaffected. The paper packaging business reported lower sales and profits compared with the third quarter of 1997 but improved results compared with the second quarter of 1998. The pressure sensitive materials line of business reported flat sales and lower profits compared with the very strong results reported in the third quarter of 1997. Since late July, the Company has repurchased approximately one million shares of its common stock.

Commenting on the results, John H. Roe, Chairman and Chief Executive Officer said, "Overall, I am satisfied with the Company's progress in the third quarter. Our flexible plastic packaging business is running very well and has delivered on the promise we made last year of improved results. We continue to see good volume growth across this business and opportunities for additional growth in both our coated and laminated film and polyethylene packaging businesses. While results in the paper packaging business are disappointing, we have taken significant steps to improve that operation. Despite a generally weak pricing environment, we expect the results of that business to show further improvement on a sequential basis going forward.

Our pressure sensitive materials business has under-performed compared to last year's excellent results but is moving aggressively to reduce overhead, dedicate more facilities to specific product lines for maximum efficiency, and create a more focused and responsive management organization. These actions should lead to improving profitability next year and position the business for future growth.

For the fourth quarter, we expect earnings to be generally comparable to the fourth quarter last year. Our plastic packaging business should continue to perform very well but overall results will be tempered by weakness in paper packaging and a difficult comparison in our pressure sensitive business with last year's unusually strong fourth quarter. Looking ahead to 1999, we expect both paper packaging and pressure sensitive materials to produce improved results and we plan to build on the strong momentum in plastic packaging."

Bemis is a leading manufacturer of flexible packaging and pressure sensitive materials.

Forward Looking Statements

Statements in this release which are not historical are considered "forward looking" and are subject to certain risks and uncertainties. Actual results may differ materially from historical or expected results due to a variety of factors, including but not limited to, changes in raw material costs, domestic and worldwide economic conditions, competitive activities, exchange rates and other issues referred to in the Company's Securities and Exchange Commission filings. -0-

                 BEMIS COMPANY, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENT OF INCOME
          (in thousands of dollars except per share amounts)
                              (unaudited)

                     Three Months Ended         Nine Months Ended
                         September 30               September 30
                       1998        1997         1998            1997

Net sales         $   465,497 $   465,533    $ 1,387,583  $ 1,422,340

Costs and
 expenses:
Cost of
 products sold        365,078     372,489      1,091,047    1,131,660
Selling,
 general and
 administrative
 expenses              45,055      43,519        138,053      145,217
Research and
 development            2,994       2,537          9,015        9,253
Interest expense        5,467       4,903         16,334       14,175
Other (income)
 costs, net               535        (423)          (407)        (837)
Minority interest
 in net income            814       1,296          2,777        3,809

Income before
 income taxes          45,554      41,212        130,764      119,063

Taxes based on
 income - cash         16,895      15,152         48,170       43,779
Taxes based on
 income
  - deferred              905         648          2,730        2,021

Net income        $    27,754 $    25,412    $    79,864  $    73,263

Basic earnings
 per share
 of common stock  $       .52 $       .48    $      1.50  $      1.38

Diluted earnings
 per share
 of common stock  $       .52 $       .47    $      1.49  $      1.36


Cash dividends
 paid             $       .22 $       .20    $       .66  $       .60

Average common
 shares and common
 stock equivalents
 outstanding           53,303      53,976         53,554       53,942


                BEMIS COMPANY, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET
                       (in thousands of dollars)
                              (unaudited)
                                  Sept. 30,       Dec. 31,
ASSETS                               1998           1997

Cash                           $    23,561    $    13,827
Accounts receivable - net          231,842        233,547
Inventories                        206,777        221,576
Prepaid expenses and
 deferred charges                   38,761         47,443
    Total current assets           500,941        516,393

Property and equipment, net        716,013        685,227

Excess of cost of
 investments in
 subsidiaries over net
 assets acquired                   162,865        150,632
Other assets                        37,478         10,315
     Total                         200,343        160,947

TOTAL ASSETS                   $ 1,417,297    $ 1,362,567

LIABILITIES AND
  STOCKHOLDERS' EQUITY

Current portion of
 long-term debt                $     2,179    $     2,173
Short-term borrowings                2,122          2,105
Accounts payable                   165,746        195,346
Accrued salaries and wages          32,067         34,892
Accrued income and
  other taxes                       23,861         16,671
Total current liabilities          225,975        251,187

Long-term debt, less
 current portion                   379,447        316,791
Deferred taxes                      66,777         64,066
Other liabilities and
 deferred credits                   55,667         56,876
    Total liabilities              727,866        688,920

Minority interest                   34,698         33,762

Stockholders' equity:
Common stock (59,056,047 and
  58,643,557 shares )                5,905          5,864
Capital in excess of
  par value                        181,909        174,562
Retained income                    669,591        624,842
Cumulative translation
 adjustment                         (6,117)        (4,521)
Treasury common stock
 (6,625,846 and
  5,676,046 shares)               (196,555)      (160,862)
Total stockholders'
 equity                            654,733        639,885

TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY          $ 1,417,297    $ 1,362,567


                 BEMIS COMPANY, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF CASH FLOWS
                       (in thousands of dollars)
                              (unaudited)

                                                 Nine Months Ended
                                                   September 30,
                                               1998            1997
Cash flows from
 operating activities
Net income                                    $  79,864     $  73,263
Non-cash items:
Depreciation and amortization                    68,290        60,727
Minority interest in
 net income                                       2,777         3,809
Deferred income taxes,
 non-current portion                              2,741         1,635
Undistributed earnings of
  affiliated companies                              500
(Gain) loss on sale of
 property and equipment                            (107)          135

Cash provided by operations                     154,065       139,569

Changes in working capital,
  net of effects of acquisitions
  and dispositions                                 (687)       (5,242)
Net change in deferred charges
 and credits                                       (957)       (8,718)

Net cash provided by
  operating activities                          152,421       125,609

Cash flows from investing activities
Additions to property and equipment             (95,456)     (117,456)
Business acquisitions                           (46,319)       (6,945)
Business divestiture                                           27,984
Proceeds from sale of property
  and equipment                                   1,868         1,762
Other                                                             (25)

Net cash used in investing activities          (139,907)      (94,680)


Cash flows from financing activities
Change in long-term debt excluding
 debt assumed in
 business acquisition                            62,656        15,911
Change in short-term debt                          (305)          525
Cash dividends paid                             (35,180)      (31,823)
Subsidiary dividends to minority
  stockholders                                   (1,835)       (1,835)
Common stock purchased for the
  treasury                                      (35,693)       (3,730)
Stock incentive programs and
  related tax effects                             7,388            52

Net cash used by financing
  activities                                     (2,969)      (20,900)

Effect of exchange rates on cash                    189          (945)

Net increase in cash                          $   9,734     $   9,084