Cott Corporation Sells Pet Bottle Manufacturing Assets And Operations To Schmalbach-Lubeca.

Business Editors

TORONTO--(BUSINESS WIRE)--Feb. 17, 2000

(NASDAQ:COTT) (TSE:BCB.)

Cott Corporation (NASDAQ:COTT) (TSE:BCB) announced today that it has taken another step in its ongoing strategic alignment of company resources. In a move to free-up cash assets for deployment in its core businesses, Cott has signed a letter of intent to sell its PET bottle manufacturing operations in the US to Schmalbach-Lubeca Plastic Containers USA Inc.(S-L). This change will give Cott access to S-L's leading edge PET bottle technology and results from Cott's assessment of its manufacturing strategy for the future.

S-L will purchase Cott's Leland, North Carolina injection-molding facility together with blow-molding assets located at various Cott sites in the U.S. Full terms of the agreement, which is subject to a number of conditions including board of directors and regulatory approval, were not disclosed.

&uot;In selling these assets to S-L, we are aligning ourselves with a world leader in plastic container technology innovation,&uot; said Frank E. Weise, Cott's president and chief executive officer. &uot;We appreciate the contributions made by our employees in these facilities and our primary concern is to ensure a smooth transition for everyone involved in this change.&uot;

William J. Long, president of Schmalbach-Lubeca adds, &uot;One of our primary goals is to continue to supply Cott with the highest quality containers to assist them in meeting their business objectives. This latest acquisition gives us additional production capacity and the ability to better serve our customer. Further, it allows both companies to focus on the core competencies that enable each to be a market leader.&uot;

Schmalbach-Lubeca, Plastic Containers USA is one of the world's leading suppliers of PET containers for the food and beverage industries. Headquartered in Manchester, MI, the company operates 20 plants in North and South America. Its parent company, Schmalbach-Lubeca AG, is one of the world's largest packaging companies. In addition to PET containers, its subsidiaries supply beverage cans and White Cap closures to food and beverage companies. In 1998, Schmalbach-Lubeca achieved sales of $2.7 billion.

Cott is the world's largest retailer brand beverage supplier, with major manufacturing facilities in its three core markets of Canada, the U.K. and the U.S.

Safe Harbor Statements

This news release may contain forward-looking statements relating to the future performance of Cott. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions.