SAN JOSE, CA—June 19, 2001 - Portola Packaging, Inc., today reported results for its third fiscal quarter ended May 31, 2001. Sales were $56.2 million compared to $52.5 million for the same quarter of the prior year, an increase of 7.0%. For the first nine months of fiscal year 2001, sales were $155.8 million compared to $147.0 million for the first nine months of fiscal year 2000, an increase of 6.0%. Portola had operating income of $4.4 million for the third quarter of fiscal 2001 as compared to operating income of $3.2 million for the third quarter of fiscal 2000, an increase of 37.5%. For the first nine months of fiscal year 2001, the Company had operating income of $5.5 million compared to operating income of $4.3 million for the first nine months of fiscal year 2000, an increase of 27.9%. The Company reported net income of $1.5 million for the third quarter of fiscal 2001 compared to a net loss of $0.6 million for the same period of fiscal year 2000, and a net loss of $0.3 million for the first nine months of fiscal year 2001 compared to a net loss of $4.7 million for the same period in fiscal 2000.

EBITDA increased 50.6% to $12.2 million in the third quarter of fiscal 2001 as compared to $8.1 million in the third quarter of fiscal 2000 and increased 48.2% to $28.0 million for the first nine months of fiscal 2001 from $18.9 million for the same period in fiscal 2000. Contributing to EBITDA for the third quarter and for the first nine months of fiscal 2001 was the gain on the sale of real estate properties located in San Jose, California, of $2.1 and $6.7 million, respectively. In addition, the Company recorded restructuring charges of approximately $1.9 million for the first nine months of fiscal 2001. Excluding the gain on the sale of real estate and the restructuring charges, EBITDA for the third quarter of 2001 would have been $10.1 million, an increase of 24.7% over the same quarter of the prior year, and EBITDA for the first nine months of fiscal 2001 would have been approximately $23.4 million, an increase of 23.8% over the same period in fiscal 2000.

Portola Packaging is a leading designer, manufacturer and marketer of tamper evident plastic closures used in 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 five-gallon PET and polycarbonate water bottles. In addition, the Company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines as well as manufactures and markets customized five-gallon water capping and filling systems. The Company is also engaged in the manufacture and sale of tooling and molds used in the blow molding industry.

PORTOLA PACKAGING, INC.
Financial Results
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CONTACT: Jack L. Watts, Chairman and Chief Executive Officer, (408) 573-2345, James A. Taylor, President and Chief Operating Officer, (408) 573-2074 or Dennis L. Berg, Vice President and Chief Financial Officer, (408) 573-2039.