Avery Dennison (AVY)

Net Income and Earnings Per Share

Net income for the first nine months of 2005 increased 19 percent compared to the same period in 2004. Net income, as a percent of sales, was 5.7 percent and 5 percent in the first nine months of 2005 and 2004, respectively.

Net income per common share for the first nine months of 2005 increased 18.9 percent compared to the same period in 2004. Net income per common share, assuming dilution, for the first nine months of 2005 increased 19 percent compared to the same period in 2004.

RESULTS OF OPERATIONS BY OPERATING SEGMENT FOR THE NINE MONTHS YEAR-TO-DATE

Net Income and Earnings Per Share

Net income for the first quarter of 2005 increased 9.7 percent compared to the first quarter of 2004. Net income, as a percent of sales, was 4.3 percent and 4.2 percent in the first quarters of 2005 and 2004, respectively.

Net income per common share for the first quarter of 2005 increased 9.4 percent compared to the first quarter of 2004. Net income per common share, assuming dilution, for the first quarter of 2005 increased 9.6 percent compared to the first quarter of 2004.

RESULTS OF OPERATIONS BY OPERATING SEGMENT FOR THE FIRST QUARTER

Net Income and Earnings Per Share

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Table of Contents

Net income for 2004 increased 4.4 percent compared to 2003. Net income for 2003 increased 4.2 percent compared to 2002. Net income, as a percent of sales, was 5.2 percent, 5.6 percent and 6.2 percent in 2004, 2003 and 2002, respectively.

Net income per common share for 2004 increased 3.7 percent compared to 2003. Net income per common share for 2003 increased 3.4 percent compared to 2002. Net income per common share, assuming dilution, for 2004 increased 3.7 percent compared to 2003. Net income per common share, assuming dilution, for 2003 increased 3.5 percent compared to 2002.