SAN JOSE, CA—March 25, 2003 - Portola Packaging, Inc., today reported results for its second quarter of fiscal 2003, ended February 28, 2003. Sales were $51.1 million compared to $48.0 million for the same quarter of the prior year, an increase of 6.5%. For the first six months of fiscal 2003 sales were $103.1 million compared to $102.2 million for the first six months of fiscal 2002, an increase of 0.9%. Portola had operating income of $1.0 million for the second quarter of fiscal 2003 as compared to operating income of $2.7 million for the second quarter of fiscal 2002. For the first six months of fiscal 2003 the Company had operating income of $2.7 million compared to operating income of $5.4 million for the first six months of fiscal 2002. The Company reported a net loss of $1.3 million for the second quarter of fiscal 2003 compared to a net loss of $0.5 million for the same period of fiscal 2002, and a net loss of $2.3 million for the first six months of fiscal 2003 compared to a net loss of $1.1 million for the same period in fiscal 2002.

During the second quarter of fiscal year 2003, the Company incurred pretax restructuring charges of $0.4 million. Gross profit decreased $1.2 million to $10.4 million for the second quarter of fiscal 2003 as compared to $11.6 million for the same quarter of the prior year. For the first six months of fiscal 2003, gross profit was $21.1 million compared to $24.0 million for the first six months of fiscal 2002. As a percentage of sales, gross profit decreased to 20.5% for the first six months of fiscal 2003 compared to 23.5% for the same period in fiscal 2002.

EBITDA decreased 28.0% to $5.4 million in the second quarter of fiscal 2003 as compared to $7.5 million in the second quarter of fiscal 2002 and decreased 23.5% to $11.4 million for the first six months of fiscal year 2003 from $14.9 million for the same period in fiscal 2002. Adjusted EBITDA, which excludes the effect of restructuring charges, warrant interest (income) expense and (gains) losses on foreign exchange, decreased 24.0% to $5.7 million in the second quarter of fiscal 2003 as compared to $7.5 million in the second quarter of fiscal 2002 and decreased 20.8% to $11.8 million for the first six months of fiscal 2003 from $14.9 million for the same period in fiscal 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 blowmolding industry

Portola Packaging, Inc. executives will hold a conference call to discuss the second quarter of fiscal year 2003 results. The conference call is scheduled for March 26, 2003, at 10:00 A.M. Pacific Standard Time. The United States Dial-In Number is 888-273-9891. The International Dial-In Number is 612-332-0802.

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.