SAN JOSE, CA—January 7, 2004 - Portola Packaging, Inc., today reported results for its first quarter of fiscal year 2004, ended November 30, 2003. Sales were $59.8 million compared to $52.0 million for the same quarter of the prior year, an increase of 15.0%. Portola had operating income of $2.1 million for the first quarter of fiscal year 2004, compared to operating income of $1.7 million for the first quarter of fiscal year 2003, an increase of 23.5%. Portola reported a net loss of $1.0 million for the first quarter of fiscal year 2004 compared to a net loss of $1.3 million for the same period of fiscal year 2003.

During the first quarter of fiscal 2004, the Company incurred pretax restructuring charges of $0.3 million. Gross profit increased $1.2 million to $11.9 million for the first quarter of fiscal year 2004 compared to $10.7 million for the first quarter of fiscal year 2003. As a percentage of sales, gross profit decreased to 19.9% for the first quarter of fiscal year 2004 as compared to 20.6% for the same quarter in fiscal year 2003.

EBITDA(a) increased 41.1% to $7.9 million in the first quarter of fiscal year 2004 as compared to $5.6 million in the first quarter of fiscal year 2003.

On September 19, 2003, the Company acquired the stock and related assets of Tech Industries, Inc. located in Woonsocket, Rhode Island for approximately $36.5 million, including transaction costs. To finance the acquisition, the Company entered into an amendment to its senior credit facility. The amended agreement increased the senior secured revolving credit facility from $50.0 million to $54.0 million, subject to a borrowing base of eligible receivables and inventory, plus net property and equipment for certain facilities. Portola’s financial results as of November 30, 2003 include Tech Industries results for the period of September 19, 2003 through November 30, 2003.

ABOUT PORTOLA PACKAGING, INC.

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 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 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. For more information about Portola Packaging, visit the Company’s web site at: www.portpack.com.

ABOUT TECH INDUSTRIES, INC.

Tech Industries, Inc. is a leading manufacturer and marketer of plastic packaging components to the cosmetic, fragrance and toiletries industry. The company’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, the company has a complimentary line of heavy wall PETG and polypropylene jars. For more information about Tech Industries, Inc., visit the company’s web site at www.portolatech.com.

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PORTOLA PACKAGING, INC.
Financial Results
(in millions)

(a) EBITDA represents, for any relevant period, income (loss) before income taxes, depreciation of property, plant and equipment, interest expense (including amortization of debt issuance costs) and amortization of intangible assets. EBITDA is not intended to represent and should not be considered more meaningful than, or an alternative to, net income (loss), cash flow or other measures of performance in accordance with generally accepted accounting principles. EBITDA data is included because the Company understands that such information is used by certain investors as one measure of an issuer’s historical ability to service debt.