Portola International

Portola Packaging Announces Litigation Settlements

SAN JOSE, CA – January 03, 2001 - Portola Packaging, Inc. announced today that it has settled a patent infringement lawsuit filed by International Plastics and Equipment Corporation ("IPEC"), during December, 1995 under which IPEC alleged that Portola's U.S. Patent No. 5,104,008 was invalid. A Consent Judgment was filed on December 28, 2000 under which both parties dropped their claims and IPEC admitted that Portola's patent is not invalid and is enforceable. Portola also granted IPEC a license to use this patent. Terms of the license were not disclosed.

Portola also announced the settlement of a second patent lawsuit with IPEC regarding U.S. Patent number 4,589,561. Terms of that settlement were not disclosed other than the fact that Portola granted IPEC a license to use certain intellectual property covered by this patent.

Finally in a related matter, Portola also reached a settlement by mutual agreement with Chiquita Brands regarding the two lawsuits pending between the parties.

"We are pleased to have reached mutually agreeable terms on which to settle these three cases," said James Taylor, President and COO. "None of the settlements will impact our current results other than to reduce litigation costs going forward".

Portola Packaging, Inc. is a leading designer, manufacturer and marketer of tamper evident plastic closures used by the dairy, bottled water, sports and fruit drinks, and institutional food product industries. The Company also produces a wide variety of plastic bottles, including 5-gallon PET and polycarbonate water bottles, as well as water filling and capping equipment. The Company is also engaged in the manufacture and sale of tooling and molds used in the blow molding industry.

Source: Portola Packaging, Inc., San Jose, CA

FOR INFORMATION CONTACT: Mr. James Taylor at (408) 573-2074