Portola Packaging Reports First Quarter Fiscal Year 2007 Results.

BATAVIA, Ill. -- Portola Packaging, Inc. ("Portola" or the "Company") today reported results for its first quarter of fiscal year 2007, ended November 30, 2006. Portola reported sales of $67.4 million for the first quarter of fiscal year 2007 compared to $65.9 million for the first quarter of fiscal year 2006, an increase of 2.3%. Portola reported operating income of $3.3 million for the first quarter of fiscal year 2007, compared to operating income of $2.1 million for the first quarter of fiscal year 2006, an increase of 57.1%. Improvements in operations of $1.2 million were mainly the result of lower general and administrative expenses and decreased restructuring charges in the first quarter of fiscal year 2007 compared to the first quarter of fiscal year 2006. Also, during the first quarter of fiscal year 2006, we incurred a one-time charge of $0.3 million relating to the dissolution of the Company's Management Deferred Compensation Plan partially offset by a gain of $0.2 million on the sale of our San Jose California facility. Portola reported a net loss of $2.1 million for the first quarter of fiscal year 2007 compared to a net loss of $3.3 million for the first quarter of fiscal year 2006.

EBITDA(a), (c)increased $1.2 million to $7.2 million in the first quarter of fiscal year 2007 compared to $6.0 million in the first quarter of fiscal year 2006. Adjusted EBITDA(b), (c), which excludes the effect of restructuring charges, (gains) or losses on the sale of assets and costs relating to the dissolution of our Management Deferred Compensation Plan, increased $0.7 million or 10.6% to $7.3 million in the first quarter of fiscal year 2007 compared to $6.6 million in the first quarter of fiscal year 2006.

CONFERENCE CALL:

Portola Packaging, Inc. executives will hold a conference call to discuss the first quarter of fiscal year 2007 results. The conference call is scheduled for January 11, 2007 at 10:00 AM Central Standard Time. The United States Dial-In Number is 800-288-8976. The International Dial-In Number is 612-332-1210. This press release and any additional financial and operating information, if any, will be available under the "in the news" section on the Company's web site at www.portpack.com.

ABOUT PORTOLA PACKAGING, INC:

Portola Packaging is a leading designer, manufacturer and marketer of tamper-evident plastic closures used in the dairy, fruit juice, bottled water, sports drinks, institutional food products and other non-carbonated beverage products. The Company also produces a wide variety of plastic bottles for use in the dairy, water and juice industries, including various high density bottles, as well as five-gallon polycarbonate water bottles. In addition, the Company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines. The Company is also engaged in the manufacture and sale of tooling and molds used in the blow molding markets. For more information about Portola Packaging, visit the Company's web site at www.portpack.com.

ABOUT PORTOLA TECH INTERNATIONAL, INC:

Portola Tech International ("PTI") is a wholly owned subsidiary of Portola and is a leading manufacturer, marketer and designer of plastic packaging components for the cosmetic, fragrance and toiletries industry. PTI's capabilities include injection and compression molding, thermal and ultraviolet metallizing, ultraviolet one-coat spray technologies, silk screening, hot stamping, lining and multiple component assembly. In addition to offering the largest stock line of closures in the industry, with over 450 styles and sizes, PTI has a complementary line of heavy wall PETG and polypropylene jars. For more information about PTI, visit PTI's web site at www.techindustries.com.

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