Consumers Packaging Reports Third Quarter Results; Revenues Rise. Sale of Interest in Overseas Company Contributes to Net Loss.

TORONTO--(BUSINESS WIRE)--Nov. 4, 1999--

(TSE:CGC.)

Consumers Packaging Inc. (TSE: CGC.TO) reported a consolidated net loss of $8.9 million, or $0.24 per share, for the three months ended September 30, 1999. The company had a net loss of $34.6 million, or $1.05 per share, in last year's third quarter.

The results for the 1999 third quarter include a loss of $3.7 million arising from the sale of Consumers Packaging's minority interest in an overseas company. Adjustments, required by Canadian accounting principles, to U.S. subsidiary results and losses from affiliate and overseas operations account for the rest of the net loss.

Gross sales of $450.2 million, including sales from Glenshaw Glass Company, acquired in June 1999, were 9.9 percent higher than the year-ago quarter.

John J. Ghaznavi, Chairman and Chief Executive Officer, said that while the net loss is disappointing, the company's positive operating income, increased working capital and sales growth reflect its strength.

Last week Consumers Packaging announced a preliminary agreement with Anheuser-Busch Packaging Group to create a joint-venture company that would sell glass containers to the Houston brewery of Anheuser-Busch under a long-term contract that could represent more than $70 million US in annual sales.

These agreements follow another long-term supply agreement Anchor signed with Anheuser-Busch in May to provide all the bottles for the brewer's Jacksonville, Florida and Cartersville, Georgia breweries.

Consolidated results for the nine months ended September 30 were a net loss of $23.6 million, or $0.67 per share, compared to a net loss of $34.0 million, or $1.03 per share, for the same period in 1998. Sales were $1.2 billion, 3.4 percent higher than the year-ago period. Operating income was $51.3 million, compared to $28.8 million for the year-ago period.

Toronto-based Consumers Packaging Inc. is a leading international designer and producer of high quality glass containers. Together with its Anchor Glass Container subsidiary in the U.S., Consumers Packaging is North America's third largest manufacturer of glass bottles and other containers.

Consumers Packaging Inc.
Periods ended Sept. 30
In thousands of dollars, except per-share data. Unaudited.
                           Three months             Year to date
                         1999         1998        1999        1998
Gross Sales          $450,182     $409,634  $1,220,008  $1,179,663
Operating Income (A)   13,722      (14,148)     51,302      28,811
Net Loss               (8,911)     (34,576)    (23,645)    (33,976)
Loss per Share,        ($0.24)      ($1.05)     ($0.67)     ($1.03)
basic & fully diluted

(A) Includes third quarter asset impairment charges and other costs of $3.7 million in 1999 and $37.3 million in 1998.

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 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.