SAN JOSE, CA—March 17, 2004 - Portola Packaging, Inc. today reported results for its second quarter of fiscal year 2004, ended February 29, 2004. Sales were $54.2 million compared to $51.1 million for the same quarter of the prior year, an increase of 6.1%. For the first six months of fiscal 2004 sales were $114.0 million compared to $103.1 million for the first six months of fiscal 2003, an increase of 10.6%. Portola had an operating loss of $4.5 million for the second quarter of fiscal year 2004, compared to operating income of $1.1 million for the second quarter of fiscal year 2003. For the first six months of fiscal 2004 the Company had an operating loss of $2.5 million compared to operating income of $2.8 million for the first six months of fiscal 2003. Portola reported a net loss of $10.7 million for the second quarter of fiscal year 2004 compared to a net loss of $1.1 million for the same period of fiscal year 2003, and a net loss of $11.7 million for the first six months of fiscal 2004 compared to a net loss of $2.4 million for the same period in fiscal 2003.

During the second quarter of fiscal 2004, the Company incurred pretax restructuring charges of $1.5 million compared to charges of $0.4 million for the same period in fiscal 2003 and incurred $1.9 million pretax restructuring charges during the first six months of fiscal 2004 compared to $0.4 million for the same period in fiscal 2003. Gross profit decreased $3.7 million to $6.8 million for the second quarter of fiscal year 2004 compared to $10.5 million for the second quarter of fiscal year 2003. Gross profit decreased $2.6 million to $18.6 million for the first six months of fiscal 2004 compared to $21.2 million for the first six months of fiscal 2003. As a percentage of sales, gross profit decreased to 16.3% for the first six months of fiscal year 2004 as compared to 20.6% for the first six months in fiscal year 2003. The decrease in gross profit was mainly attributable to resin price increases, competitive pricing pressures in the US and the UK markets and also cold weather and severe winter storms experienced in the eastern US as compared to the same period last year. In addition, the Company incurred one time relocation and plant consolidation expenses of $1.0 million and $1.1 million during the second quarter and first six months of fiscal 2004, respectively, that were charged to cost of sales.

During the second quarter of fiscal 2004, the Company incurred $0.7 million write-off of loan fees related to its $110 million of bonds redeemed in the quarter and incurred 30 days of duplicative interest of approximately $1.0 million due to the timing of the bond redemption. In addition, the Company also recorded a $1.9 million loss related to the redemption of warrants. Foreign exchange gain for the second quarter of fiscal 2004 totaled $0.9 million as compared to a gain of $0.1 million for the same period in fiscal 2003. Foreign exchange gain for the first six months of fiscal 2004 totaled $2.3 million compared to a loss of $0.3 million for the same period in fiscal 2003.

Subsequent to February 29, 2004, the Company entered into a contract for sale of its manufacturing building located in Chino, California. The Company expects to realize a gain on this sale during the third quarter of fiscal 2004. In addition, the Company purchased certain machinery and equipment for production of dairy closures from a competitor in the United Kingdom. This machinery and equipment is expected to be utilized in the UK and other Portola facilities.

EBITDA(a) decreased $6.8 million to ($1.1) million in the second quarter of fiscal year 2004 compared to $5.7 million in the second quarter of fiscal year 2003, and decreased $4.6 million to $6.8 million for the first six months of fiscal 2004 compared to $11.4 million for the first six months of fiscal 2003.

This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Although the Company believes that the expectations reflected in any such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Any forward-looking statements herein are subject to certain risks and uncertainties in the Company’s business, including but not limited to, competition in its markets, and reliance on key customers, all of which may be beyond the control of the Company. Any one or more of these factors could cause actual results to differ materially from those expressed in any forward-looking statement.

CONFERENCE CALL:

Portola Packaging, Inc. executives will hold a conference call to discuss the second quarter of fiscal 2004 results. The conference call is scheduled for March 18, 2004 at 10:00 A.M. Pacific Standard Time. The United States Dial-In Number is 888-428-4471. 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 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 PORTOLA TECH INTERNATIONAL:

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 .

FOR ADDITIONAL INFORMATION CONTACT:

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.