BATAVIA, IL—April 10, 2006 - Portola Packaging, Inc. (“Portola” or the “Company”) today reported results for its second quarter of fiscal 2006, ended February 28, 2006.  Portola reported sales of $63.4 million for the second quarter of fiscal year 2006 compared to $63.1 million for the second quarter of fiscal year 2005, an increase of 0.5%.  For the first six months of fiscal 2006, sales were $129.3 million compared to $125.9 million for the first six months of fiscal 2005, an increase of 2.7%.  Portola reported operating income of $2.7 million for the second quarter of fiscal year 2006, compared to an operating loss of $0.5 million reported in the second quarter of fiscal year 2005.  For the first six months of fiscal 2006, the Company had operating income of $4.8 million compared to operating income of $1.0 million for fiscal year 2005. 

Portola reported a net loss of $2.4 million for the second quarter of fiscal year 2006 compared to a net loss of $5.2 million for the second quarter of fiscal year 2005. For the first six months of fiscal year 2006, the Company had a net loss of $5.7 million compared to a net loss of $6.9 million for the same period in fiscal year 2005. 

The improvement of $2.8 million in the net loss for the second quarter of fiscal year 2006 as compared to the same period in fiscal year 2005 is primarily attributed to improved margins in the US Closures and China business units, reduced spending levels and a decrease in headcount during the second quarter of fiscal 2006.  The Company recorded a gain of $0.6 million for the sale of an idle facility in Sumter, South Carolina and a warehouse building in Woonsocket, Rhode Island.

EBITDA(a), (c) increased $3.5 million to $7.2 million in the second quarter of fiscal year 2006 compared to $3.7 million in the second quarter of fiscal year 2005 and increased $2.0 million to $13.3 million for the first six months of fiscal 2006 compared to $11.3 million for the first six months of fiscal 2005.  Adjusted EBITDA(b),  (c), which excludes the effect of restructuring charges, (gains) or losses on the sale of assets, one-time relocation costs, warrant interest (income) expense and other non recurring expenses, increased $2.8 million or 71.8% to $6.7 million in the second quarter of fiscal year 2006 compared to $3.9 million in the second quarter of fiscal year 2005, and increased $1.7 million to $13.4 million for the first six months of fiscal 2006 compared to $11.7 million for the first six months of fiscal 2004.

CONFERENCE CALL:
Portola Packaging, Inc. executives will hold a conference call to discuss the second quarter of fiscal year 2006 results.  The conference call is scheduled for April 11, 2006 at 10:00 AM Central Time.  The United States Dial-In Number is 800-553-0358.  The International Dial-In Number is 612-332-0819.   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.  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 PORTOLA TECH INTERNATIONAL:
Portola Tech International (“PTI”) is a wholly owned subsidiary of Portola and is a leading manufacturer, marketer and designer of plastic packaging components to the cosmetic, fragrance and toiletries industry.  PTI’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, PTI has a complementary line of heavy wall PETG and polypropylene jars.  For more information about PTI, visit PTI’s web site at www.techindustries.com.

FOR ADDITIONAL INFORMATION CONTACT:

Brian J. Bauerbach                                   Portola Packaging, Inc.
President and Chief Executive Officer         951 Douglas Road
(630) 326-2117                                        Batavia, Illinois 60510
Web Site: www.portpack.com

Michael T. Morefield                                  Phone:            (630) 406-8440
Senior Executive Vice President                                       (888) 739-0936
Chief Financial Officer                               Fax:                (630) 406-8442
(630) 326-2074                                        Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it                   

PORTOLA PACKAGING, INC.

Unaudited Financial Results

(in millions)

1. 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. 

(b)       Adjusted EBITDA represents, for any relevant period, income (loss) before income taxes, depreciation of property, plant and equipment, net interest expense, amortization of debt issuance costs, amortization of intangible assets, impairment of intangible assets, restructuring costs, one-time relocation costs, gains and losses on sale of assets and other non-recurring expenses.  Adjusted EBITDA excludes restructuring charges of $0.1 million and $0.2 million for the three months ended February 28, 2006 and 2005, respectively and excludes restructuring charges of $0.7 million and $0.4 million for year to date February 28, 2006 and 2005, respectively.

(c)       EBITDA and Adjusted EBITDA are 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 and Adjusted EBITDA data are 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 and because certain restrictive covenants in the Indenture are based on a term very similar to the Company’s Adjusted EBITDA.

1. Percentages are calculated as a percent of sales.

       (e)       Charges relating to the dissolution of the Management Deferred Compensation Plan (MDCP) which occurred in December 2005.