results for its first quarter of fiscal year 2003, ended November 30, 2002. Sales were $52.0 million compared to $54.2 million for the same quarter of the prior year, a decrease of 4.1%. Portola had operating income of $1.7 million for the first quarter of fiscal year 2003, compared to operating income of $2.7 million for the first quarter of fiscal year 2002. Portola reported a net loss of $1.1 million for the first quarter of fiscal year 2003 compared to a net loss of $0.6 million for the same period of fiscal year 2002. Gross profit decreased $1.1 million to $11.2 million for the first quarter of fiscal year 2003 compared to $12.3 million for the first quarter of fiscal year 2002. As a percentage of sales, gross profit decreased to 21.5% for the first quarter of fiscal year 2003 as compared to 22.7% for the same quarter in fiscal year 2002. EBITDA decreased 17.6% to $6.1 million in the first quarter of fiscal year 2003 as compared to $7.4 million in the first quarter of fiscal year 2002. Adjusted EBITDA, which excludes the effect of warrant interest (income) expense and (gains) losses on foreign exchange and the sale of assets, decreased 17.3% to $6.2 million in the first quarter of fiscal year 2003 as compared to $7.5 million in the first quarter of fiscal year 2002.

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 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. executives will hold a conference call to discuss the first quarter of fiscal year 2003 results. The conference call is scheduled for December 19, 2002, at 10:00 A.M. Pacific Standard Time. The United States Dial-In Number is 888-273-9886. The International Dial-In Number is 612-332-0819.

PORTOLA PACKAGING, INC.
Financial Results
(in millions)

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.