Owens-Illinois (OI)

First Quarter Earnings per Share:

The Company reported earnings per share of $0.30 (diluted) for the first quarter of 2007 compared with $0.12 per share (diluted) for the first quarter of 2006.  Exclusive of a $0.02 per share after tax loss from the mark to market effect of natural gas hedges, which the Company considers not representative of ongoing operations, the Company earned $0.14 per share (diluted) for the first quarter of 2006.

“I am pleased with the solid progress our global glass team has made with its productivity and cost improvement initiatives,” said Al Stroucken, Chairman and Chief Executive Officer. “We are still early in our margin recovery efforts and we are certain to face challenges along the way, especially in the face of a rapidly changing competitive landscape. However, I believe that we are on the right path to transform our business model and demonstrate improved performance.”

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1.    Earnings Per Share

        The following table sets forth the computation of basic and diluted earnings per share:

        The convertible preferred stock was not included in the computation of diluted earnings per share for the three months ended March 31, 2004 since the result would have been antidilutive. Options to purchase 3,607,877 and 7,135,909 weighted average shares of common stock that were outstanding during the three months ended March 31, 2005 and 2004, respectively, were not included in the computation of diluted earnings per share because the options' exercise price was greater than the average market price of the common shares.

2.    Earnings Per Share

        The following table sets forth the computation of basic and diluted earnings per share:

        See Note 12 for additional information on Convertible Preferred Stock.

        The convertible preferred stock was not included in the computation of 2004 diluted earnings per share since the result would have been antidilutive. Options to purchase 5,067,104 weighted average shares of common stock which were outstanding during 2004 were not included in the computation of diluted earnings per share because the options' exercise prices were greater than the average market price of the common shares. For the years ended December 31, 2003 and 2002, diluted earnings per share of common stock is equal to basic earnings per share of common stock due to the net loss.

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