BLL Ball Corp

Ball to Close Quebec Food Can Plant BROOMFIELD, Colo., May 25 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE:BLL) announced today that it plans to close a metal food container manufacturing plant near Montreal and will record in the second quarter an after-tax charge of $6 million related to the closure. The plant closure is expected to occur before the end of the year and will be cash positive by approximately $3 million following proceeds on sale of assets and tax recoveries associated with the action. Additionally, the company expects to reduce average working capital in its food can operations by $15 million as a result of the plant closure. Brian M. Cardno, president of Ball's metal food container operations, said the closure was consistent with Ball's strategy to keep manufacturing costs low while delivering top-quality packaging products to its customers. The plant produces three-piece welded food cans. "While a plant closure is always difficult on those involved, we will do our best to assist affected employees," Cardno said. "We will work with the appropriate union officials, government agencies and our employees on the various issues associated with a plant closure, including severance and outplacement assistance." The plant, located in Baie d'Urfe, opened in 1983 to produce beverage cans. Food can production was added in 1992 while beverage can production ceased in 1996. It employs approximately 70 people and is one of the smallest plants within Ball Corporation. Ball Corporation is a supplier of metal and plastic packaging products, primarily for the beverage and food industries. The company also owns Ball Aerospace & Technologies Corp., which develops sensors, spacecraft, systems and components for government and commercial markets. Ball Corporation employs more than 13,200 people and reported 2004 sales of $5.4 billion. Forward-Looking Statements The information in this news release contains "forward-looking" statements and other statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," and variations of same and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in the company's filings with the Securities and Exchange Commission, especially in Exhibit 99.2 in the most recent Form 10-K. These filings are available at our Web site and at http://www.sec.gov/. Factors that might affect our packaging segments include fluctuation in consumer and customer demand; availability and cost of raw materials, particularly the recent significant increases in resin, steel, aluminum and energy costs, and the ability to pass such increases on to customers; competitive packaging availability, pricing and substitution; changes in climate and weather; fruit, vegetable and fishing yields; industry productive capacity and competitive activity; lack of productivity improvement or production cost reductions; the German mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; international business risks, including foreign exchange rates, tax rates and activities of foreign subsidiaries; and the effect of LIFO accounting on earnings. Factors that might affect aerospace segment include: funding, authorization and availability of government contracts and the nature and continuation of those contracts; and technical uncertainty associated with segment contracts. Factors that could affect the company as a whole include those listed plus: acquisitions, joint ventures or divestitures; regulatory action or laws including environmental and workplace safety; governmental investigations; goodwill impairment; antitrust and other litigation; strikes; boycotts; increases in employee benefits and labor costs; rates of return projected and earned on assets of the company's defined benefit retirement plans; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or management's evaluation of the company's internal control over financial reporting. DATASOURCE: Ball Corporation CONTACT: Investors, Ann T. Scott, +1-303-460-3537, , or Media, Scott McCarty, +1-303-460-2103, , both of Ball Corporation Web site: http://www.ball.com/

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