Consumers Packaging Reports Third Quarter and Nine Months 1996 Financial Results.

TORONTO, Canada--(BUSINESS WIRE)--Oct. 24, 1996--Consumers Packaging, Inc. (Toronto Stock Exchange:CGC) today reported results for the third quarter and nine months ended September 30, 1996.

Total revenues in the third quarter were $118.5 million as compared to $120.7 million reported in the same period last year. Net earnings for the quarter were $3.4 million, or $0.11 per share on a fully diluted basis, compared with net earnings of $6.7 million, or $0.22 per share, for the third quarter of 1995.

For the nine months ended September 30, 1996, the Company reported revenues of $356.0 million, compared with $352.9 million for the same period last year. Net earnings for the nine months were $14.2 million, or $0.44 per share on a fully diluted basis, compared with $25.2 million, or $0.87 per share on a fully diluted basis for the comparable period in 1995.

Mr. John Ghaznavi, Chairman and Chief Executive Officer, stated, "In the third quarter, the Company continued to run at a high level of capacity, with unit sales up about 4.5% compared to last year. However, conditions in the glass container market, both domestically and in the U.S., remain extremely competitive, with continued pricing pressure impacting margins. The North American glass container industry continues to consolidate, and with Anchor Glass filing under the U.S. bankruptcy code, we should start to see reductions in excess capacity and better pricing conditions for manufacturers going forward. We remain very committed to the glass container industry and during the quarter we continued to invest heavily in new equipment, and year to date capital expenditures have exceeded $46 million, compared to a spending level of $40 million at this time last year. Significant improvements were made to production facilities at our Bramalea, Ontario plant with the installation of two large high production glass forming machines. Despite generally lower prices, our capital program has enabled us to increase our productivity resulting in greater sales per employee.

Mr. Ghaznavi continued, "Historically, the Company has benefited from strategic alliances and joint ventures, and as a continuation of this strategy, the Company has signed a memorandum of understanding with a joint venture partner to operate a glass-container manufacturing plant in Belarus. Additionally, the Company is finalizing an agreement to supply technical assistance and to take a minority interest in a glass-container plant in the Middle East. These combined efforts will increase the Company's ability to compete as a global manufacturer of glass containers."

Consumers Packaging, Inc. is a leading designer and producer of high quality glass containers. Headquartered in Canada, the Company operates seven manufacturing facilities and distributes its products domestically and internationally. Operating as Consumers Glass, it is the market share leader and only glass container producer in Canada, and is recognized as the fourth largest in North America. -0-

-Tables Follow-

                       CONSUMERS PACKAGING INC.
          (In thousands of dollars except profit per share data)

                          Three Months         Nine Months
                      Ended September 30,   Ended September 30,
                        1996      1995        1996     1995

Gross Sales            $118,513 $120,748    $356,030 $352,943

Gross Margin             29,819   34,858      95,340  111,713

Earnings Before Interest  5,860   10,311      21,932   38,641

Interest & Other          2,448    3,618       7,690   13,478

Net Earnings            $ 3,412  $ 6,693    $ 14,242 $ 25,163

Net Earnings Per Share


    Basic                 $0.11    $0.23       $0.45    $0.91

    Fully Diluted         $0.11    $0.22       $0.44    $0.87

CONTACT: M. William Lightner

Vice President, Finance and

Chief Financial Officer

Consumers Packaging Inc.

[phone]

or

Investor Relations Contact:

Donna N. Stein, APR/Sue Yeoh

Morgen-Walke Associates, Inc.

[phone]

or

Press Contact:

Stan Froelich

Morgen-Walke Associates, Inc.

[phone]