Batavia, Illinois – May 20, 2008 – Portola Packaging, Inc., announces it is consolidating its US manufacturing footprint and leveraging it’s invested capital into their three US ‘Anchor’ plants. This move is part of the company’s on-going strategy to invest in the most efficient manufacturing technologies and streamline its operations.

As escalating raw materials costs continue to plague all plastics related industries, Portola is taking the steps necessary to be the most cost-effective, high-efficiency producer in the markets in which it competes. This new structure will produce significant annual cost savings and further positions Portola as the premier supplier in their market.

Portola will consolidate its Clifton Park, NY operation into their three other US Locations of Batavia IL, Phoenix AZ and Kingsport, TN. The TN facility will absorb the majority of the NY business. The transition will begin immediately and is expected to be completed by November. The new manufacturing footprint of Portola will then include ‘Anchor’ plants in the East, West and Central regions of the US which will provide a very cost effective and freight friendly platform for the company in the years to come.

“This is a huge step forward for Portola,” says Brian Bauerbach, President and CEO of Portola Packaging. “We have been working on this efficiency improvement strategy for the past two years and it is now important that we take this culminating step to realize the full potential of the plan. Our customers will benefit from improved product quality and consistency provided by our anchor plants. Our employees and shareholders will benefit from this action as it removes cost from our system.” added Bauerbach.

Along with labor related synergy savings, the move allows the company to reduce its per kilowatt hour energy costs by 66% and reduces other significant expenses associated with manufacturing in New York State. “Over the past 3 years Portola has invested over $25MM in new manufacturing technologies that has dramatically increased output and consistency. This investment allows us to satisfy higher volumes within a smaller footprint,” concluded Bauerbach.

“The capital investment is clearly starting to pay off,” says John Murkin, Sr. VP of Manufacturing. For the past two years, Portola has made significant investments in new product lines to update its product offering. These new products are being produced on new manufacturing platforms such as rotary compression molding as well as high cavitation injection molding. “Five years ago we had no volume from compression molding. Today it is nearly one-third of our volume. We can now produce more in a smaller footprint which streamlines our operations and supports our overall sustainability objectives,” added Murkin.

“A seamless transition for our customers is our top priority as we implement this improvement plan,” explains Lorna Millar Sr VP of Sales and Marketing. “We have developed a comprehensive plan to ensure our customers realize only the benefits of this consolidation strategy.” The dairy and water industries are quite familiar with these types of consolidation activities as many dairy operators have taken similar actions of their own to achieve improved operating results. “We look forward to the many positive benefits that our customers will realize as a result of simplifying and streamlining our operations,” added Millar.

When you add it all up, Portola continues to take the steps necessary to supply innovative products at the best value possible in the markets where they compete.

For more information on the news that is the subject of this release, contact Roy Robinson or visit 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, wine, 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

Media Contact:
Roy Robinson
Portola Packaging, Inc.
(630) 406-8440 ext. 2112