Consumers Packaging Reports First Quarter Results - Operating Income Rises Strongly; Net Loss Reduced.

TORONTO--(BUSINESS WIRE)--May 14, 1999--

Consumers Packaging Inc. (TSE:CGC.) reported a consolidated net loss of $12.5 million, or $.37 per share, for the three months ended March 31, 1999, compared to a net loss of $14.8 million, or $.45 per share, for the year-ago quarter.

Consolidated operating income doubled in the first quarter of 1999 to $6.2 million, from $3.1 million in the first quarter of 1998.

John J. Ghaznavi, chairman, said both the company's major operating units had increased operating earnings. "The improvement reflects our 1998 restructuring," he said. "At this rate, 1999 will be a successful year, with positive net earnings," he said.

The net loss for the first quarter reflects a $3.7 million increase in interest costs compared to the year-ago quarter, increased depreciation costs of $5.2 million, and the full absorption of a net loss by U.S subsidiary Anchor Glass Container Corporation, as required by accounting regulations. Consumers absorbed only a portion of an Anchor loss in the 1998 first quarter, the minority absorbing $3.9 million. The consolidated results for the 1999 first quarter also include an $800,000 loss from a recently started Ukrainian glass plant.

The losses were partially offset by a tax benefit of $7.0 million recorded in the first quarter to reflect the impact of the adoption by the Canadian accounting profession of the deferred tax accounting methods used in the U.S. As a result of this change, Consumers also credited $20 million to retained earnings on the balance sheet as of January 1, 1999.

Toronto-based Consumers Packaging Inc. is a leading international designer and producer of high quality glass containers. It commands more than 85 percent of the Canadian market and with its Anchor Glass Container subsidiary is the third largest manufacturer of glass containers in North America. The company operates the only ISO 9001-certified glass plants in North America. -0-

Consumers Packaging Inc.
Three months ended March 31
In thousands of dollars, except per-share data. Unaudited.
                                  1999        1998
Gross Sales                   $343,744    $343,157
Operating Income                 6,202       3,120
Net (Loss)                     (12,455)    (14,800)
Per fully diluted share         ($0.37)     ($0.45)

This press release contains "forward-looking statements" that are subject to a number of risks and uncertainties, many of which are beyond the control of the company. Forward looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "estimate," and similar expressions. Actual results for the company could differ materially from those contemplated by these forward-looking statements as a result of these risks and uncertainties. In light thereof, there can be no assurance that the results and events contemplated by the forward-looking information contained herein will in fact transpire. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements.