Constar International Inc. Signs Supply Agreement With Carolina Canners.

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Oct. 21, 2003

Constar International Inc. (NASDAQ:CNST) announced today a ten year agreement to supply privately held Pepsi Bottler Carolina Canners with conventional PET (polyethylene terephthalate) beverage bottles. Deliveries will commence this month.

In connection with the agreement, Constar acquired PET manufacturing equipment from a subsidiary of Carolina Canners and entered into a lease for factory and warehouse space in Cheraw, South Carolina.

Michael J. Hoffman, Constar's President and Chief Executive Officer, commented, "We are very excited that Carolina Canners chose Constar as their partner to transition out of self manufacturing and we look forward to the opportunity to serve this important regional customer base over the long-term. We expect the transaction to have an attractive return."

Brantley Burnett, President of Carolina Canners commented, "We were one of the first bottling groups in the United States to enter into self manufacturing in 1988 back when there was a shortage of available supply of plastic bottles. Now that the PET bottle market has matured and evolved, we determined it was best to transition back to a merchant supply position. Constar was chosen as our future supplier based on their technology, cost structure, location and commitment to service."

The purchase price and other terms of the transaction were not disclosed.

Cautionary Note Regarding Forward-Looking Statements 

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve a number of risks, uncertainties and other factors, which may cause the actual results to be materially different from those expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among other things, continued conversion from metal, glass and other materials for packaging to plastic packaging; increasing demand for packaging requiring the Company's proprietary technologies and know-how; the Company's ability to protect its existing technologies and to develop new technologies; the Company's ability to control costs; the Company's ability to achieve improved utilization on its equipment; the terms upon which the Company acquires resin and its ability to reflect those terms in its sales; the Company's debt levels and its ability to refinance and service existing debt; the Company's ability to comply with restrictive covenants contained in the instruments governing its indebtedness or obtain waivers if not in compliance; the Company's ability to realize the expected benefits of its restructuring and to complete the restructuring at its expected costs; the success of the Company's customers in selling their products in their markets; the Company's customers purchasing volumes that do not fall short of projections delivered to the Company; risks associated with the Company's international operations; legal and regulatory proceedings and developments, including the outcome of litigation described in the Company's SEC filings; general economic and political conditions; seasonal fluctuations in demand and the impact of weather on sales; the Company's ability to identify trends in the markets and to offer new solutions that address the changing needs of these markets; the Company's ability to successfully execute its business model and enhance its product mix; the Company's ability to compete successfully against competitors; and the other risks identified from time to time in the Company's SEC filings. The Company does not intend to review or revise any particular forward-looking statement in light of future events.

About Constar

Philadelphia-based Constar is a leading global producer of PET (polyethylene terephthalate) plastic containers for food, soft drinks and water. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support. Its customers include many of the world's leading branded consumer products companies.