Portola International

PORTOLA PACKAGING REPORTS SECOND QUARTER RESULTS

SAN JOSE, CA—March 21, 2001 - Portola Packaging, Inc., today reported results for its second fiscal quarter ended February 28, 2001, which include results from the acquisition of substantially all of the assets of Consumer Cap Corporation that closed in January 2001. Sales were $50.0 million compared to $46.9 million for the same quarter of the prior year, an increase of 6.6%. For the first six months of fiscal 2001 sales were $99.5 million compared to $94.5 million for the first six months of fiscal 2000, an increase of 5.3%. Portola had operating income of $1.2 million for the second quarter of fiscal 2001 as compared to an operating loss of $0.1 million for the second quarter of fiscal 2000. For the first six months of fiscal 2001 the Company had operating income of $1.1 million compared to operating income of $1.2 million for the first six months of fiscal 2000, a decrease of 8.3%. The Company reported net income of $0.2 million for the second quarter of fiscal 2001 compared to a net loss of $2.9 million for the same period of fiscal 2000, and a net loss of $1.8 million for the first six months of fiscal 2001 compared to a net loss of $4.1 million for the same period in fiscal 2000.

EBITDA increased 108.7% to $9.6 million in the second quarter of fiscal 2001 as compared to $4.6 million in the second quarter of fiscal 2000 and increased 46.3% to $15.8 million for the first six months of fiscal 2001 from $10.8 million for the same period in fiscal 2000. Contributing to EBITDA for the second quarter and for the first six months of fiscal 2001 was the gain on the sale of real estate properties located in San Jose, California, of $3.3 and $4.6 million, respectively. In addition, the Company recorded restructuring charges of approximately $0.1 and $1.9 million, during the second quarter and for the first six months of fiscal 2001, respectively. Excluding these transactions, EBITDA for the second quarter for 2001 would have been $6.4 million and EBITDA for the first six months of fiscal 2001 would have been approximately $13.2 million.

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 five-gallon PET and 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 blowmolding industry.

Q2 01 YTD 01 Q2 00 YTD 00 Sales $50.0 $99.5 $46.9 $94.5 Cost of sales 40.1 79.2 37.4 74.8 Gross profit 9.9 20.3 9.5 19.7 Gross profit % 19.8% 20.4% 20.3% 20.8% SG&A, R&D and  Amortization 8.7 19.2 9.6 18.5 Operating income (loss) 1.2 1.1 (0.1) 1.2 Other expense 0.7 3.3 4.4 7.7 Income (loss) before income taxes 0.5 (2.2) (4.5) (6.5) Income tax expense (benefit) 0.3 (0.4) (1.6) (2.4) Net income (loss) 0.2 (1.8) (2.9) (4.1) EBITDA 9.6 15.8 4.6 10.8 EBITDA % 19.2% 15.9% 9.8% 11.4% Adjusted EBITDA 6.4 13.2 4.6 10.8 Adjusted EBITDA % 12.8% 13.3% 9.8% 11.4%

	February 28, 2001 August 31, 2000 Current assets $53.0 $52.5 Property, plant and equipment, net 81.6 82.5 Other assets 22.6 19.3 Total assets 157.2 154.3 Current liabilities 35.2 34.4 Long-term debt 138.4 134.5 Other liabilities 3.4 3.7 Minority interest 0.1 - Warrants 12.9 12.6 Shareholders' equity (deficit) (32.8) (30.9) Total liabilities and shareholders' equity (deficit) 157.2 154.3