Strong Cash Flow Enabled Continued Debt

-- Third Quarter Earnings Highlights -- Net earnings of $0.75 per share (diluted) vs. $0.47 per share (diluted) in 2004 -- Earnings from continuing operations of $0.34 per share, including the unusual items listed in Note (1), vs. $0.45 per share in 2004 -- Earnings from continuing operations, exclusive of the unusual items listed in Note (1), were $0.34 per share vs. $0.40 per share in 2004 "Cash generation for debt reduction, our top priority, was excellent this quarter. Operational earnings declines due to cost impacts of energy, raw materials, transportation and transformation initiatives are significant and will likely cause full year 2005 EPS to fall below the 2004 level of $1.43; however, we understand these impacts and believe they are actionable. We remain on track in our turnaround and transformation, and believe our third quarter results are a symbol of our focus on deleveraging as our core priority," said Steve McCracken, O-I Chairman and Chief Executive Officer. Reconciliation of Third Quarter 2004 earnings to Third Quarter 2005 Earnings per share from continuing operations, excluding the items listed in Note (1), were $0.34 per share for the third quarter of 2005 compared with $0.40 per share for the third quarter of 2004. Earnings during the third quarter of 2005 were positively impacted by higher unit shipments, improved selling prices, productivity and cost reduction initiatives, and European operational synergies. However, these positive factors were more than offset by unprecedented inflationary cost pressures, principally energy and transportation, as well as operational inefficiencies, European integration and the new European headquarters, as discussed in the Company´s September 15 press release. The higher unit shipments in the quarter reflected stronger demand for beer and beverage containers in the Company´s glass business, and significant growth in health care containers and tamper evident closures in the plastics business. The major factors contributing to the net $0.06 EPS decline in the third quarter of 2005 compared with the third quarter of 2004 can be retrieved online at following link: [url="http://www.o-i.com/about/investors/News.asp"] Click here [/url] Outlook "The significant cost impacts to our business are understood and actionable. Impacts to cash flow from inflationary cost pressures must be offset via pricing and major initiatives in procurement, productivity, capital deployment and supply chain. We remain on course and expect a challenging but positive 2006," said McCracken. Conference Call As announced previously, a conference call to discuss the Company´s latest results will be held Thursday, October 20, 2005, at 8:30 a.m., Eastern Time. A live webcast and a replay of the conference call will be available on the Internet at the O-I Web site (www.o-i.com). The conference call also may be accessed by dialing 888-733-1701 (U.S. and Canada) or 706-634-4943 (International) by 8:20 a.m. (Eastern Time) on October 20. Ask for the O-I conference call. A replay of the call will be available from approximately 11:30 a.m. (Eastern Time) on October 20 through 11:59 p.m. on Friday, October 28. In addition to the O-I Web site, the replay also may be accessed by dialing 800-642-1687 (U.S. and Canada) or 706-645-9291 (International). The conference ID number to access the replay is 9749572.