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Owens-Illinois Builds a Better Glass Bottle
                           and More Efficiently --

          -- Saves Raw Materials and Energy, Reduces Production and
                           Transportation Costs --

         -- Miller Brewing Company First Company Using Technology --

TOLEDO, Ohio, Aug. 16 /PRNewswire/ -- Owens-Illinois, Inc., (NYSE: OI) announced today that it has developed a revolutionary new process that substantially reduces the amount of glass needed to manufacture a typical glass bottle, making bottles lighter and making their production faster and more cost effective than ever before. Duraglas XL(TM) bottles retain all the functionality of current glass containers, but with increased strength, reduced consumption of raw materials and energy, and lower transportation costs. Duraglas XL(TM) bottles make glass a more advanced, environmentally friendly, still fully-recyclable, and cost effective choice for packaging.

Joseph H. Lemieux, Owens-Illinois chairman and chief executive officer, said, "The process for producing Duraglas XL(TM) bottles is a major advance in glass container manufacturing, which will enable our customers to offer consumers the premium image of glass on an even more efficient and competitive basis with other rigid packaging materials. By dramatically reducing the amount of raw material and energy required in the manufacturing process and increasing the rate of production, Duraglas XL(TM) containers help make glass one of the most cost effective and environmentally friendly, 100% recyclable choices in packaging."

The process used in the production of Duraglas XL(TM) bottles embodies O-I's proprietary cased gob technology. "The improved features of Duraglas XL(TM) bottles are the direct result of the Owens-Illinois commitment to ongoing investments in technology and equipment, which have already made our glass container manufacturing operations significantly more efficient and productive than those of our competitors," Mr. Lemieux said. "Over the next several years, we expect to gain an even greater advantage as we install this process at selected O-I facilities around the world. This should have a significant positive impact on our future financial performance and the financial performance of our customers."

Duraglas XL(TM) bottles can be produced with less glass while fully meeting customer requirements for commercial performance. For example, reductions of 10% to 20% in raw materials are possible in the production of a typical 12-ounce capacity beer bottle. Additional savings likely will be possible as research and development activities yield further improvements in the technology.

Because forming machines can run at higher speeds for lighter weight containers, manufacturing productivity is expected to increase. The lighter weights also are expected to lower the cost of shipping the bottles to customers as well as the customer's cost of shipping filled bottles.

Owens-Illinois is currently making Duraglas XL(TM) bottles for Miller Brewing Company on two production lines at the company's Streator, Ill., glass container plant. The bottles are then shipped to Miller's Milwaukee brewery and filled in accordance with normal commercial standards. Duraglas XL(TM) bottles are fully closed-loop recyclable, meaning that they can be crushed, melted, and made into new bottles over and over again, just like traditional glass containers from Owens-Illinois.

To date, several U.S. and foreign patents have been issued to Owens- Illinois for technology related to the production of Duraglas XL(TM) glass containers and many additional patent applications are currently pending before the U.S. and foreign patent offices. Owens-Illinois licenses its glass container manufacturing technology around the world, and the process for producing Duraglas XL(TM) bottles is available to selected O-I licensees outside the U.S.

Mr. Lemieux said, "Depending on commercial acceptance supporting the investment of further installations of equipment for producing Duraglas XL(TM) bottles, this development could yield material incremental financial returns for the Company and its worldwide licensees outside the U.S."

Forward-Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements are necessarily projections which are subject to change upon the occurrence of events that may affect the business.

Company Profile

The world leader in glass container technology, Owens-Illinois is the largest manufacturer of glass containers in the United States, North America, South America, Australia, New Zealand, and India, and one of the largest in Europe. O-I also is a worldwide manufacturer of plastics packaging with operations in North America, South America, Australia, Europe, and Asia. Plastics packaging products manufactured by O-I include containers, closures, and prescription containers. The company also manufactures labels for a variety of containers and multipack carriers for beverage bottles.
SOURCE Owens-Illinois, Inc.
Web site: http: //www.O-I.com
Company News On-Call: http: //www.prnewswire.com/comp/117254.html or fax, 800-758-5804, ext. 117254
CONTACT: John Hoff of Owens-Illinois, 419-247-1203