EARNINGS: Portola, Cohesant issue financial statements

Also see below:
-- Cohesant Technologies reports record FY sales, earnings

Portola Packaging reports net loss in quarterly results

SAN JOSE, CA, Dec. 21, 2004 (BUSINESS WIRE) -- Portola Packaging Inc. reported results for its first quarter of its 2005 fiscal year, ended Nov. 30, 2004. Sales were $62.8 million compared to $59.8 million for the same quarter of the prior year. Portola had operating income of $1.7 million for the first quarter of fiscal year 2005, compared to operating income of $2.1 million for the first quarter of fiscal year 2004. Foreign exchange gain for the first quarter of fiscal 2005 totaled $2.0 million as compared to a gain of $1.3 million for the same period in fiscal 2004. Portola reported a net loss of $1.6 million for the first quarter of fiscal year 2005 compared to a net loss of $1.0 million for the same period of fiscal year 2004.

The increase in net loss of $0.6 million is primarily attributed to delays in passing resin increases to customers, competitive pressures in the US and UK markets in fiscal year 2004 that adversely affected first quarter fiscal year 2005 prices, as well as higher interest expense. This was partially offset by increased sales volume in Canada, lower selling, general, administrative and research and development costs as well as a higher gain on foreign exchange.

EBITDA decreased $0.2 million to $7.7 million in the first quarter of fiscal year 2005 compared to $7.9 million in the first quarter of fiscal year 2004. Adjusted EBITDA, which excludes the effect of restructuring charges, (gains) losses on sale of assets, one-time relocation costs, and warrant interest (income) expense, decreased to $7.8 million in the first quarter of fiscal 2005 compared to $8.2 million in the first quarter of fiscal 2004.

Portola Packaging (www.portpack.com) is a leading designer, manufacturer and marketer of tamper evident plastic closures used in dairy, fruit juice, bottled water, sports drinks, institutional food products and other non-carbonated beverage products. The Company also produces a wide variety of plastic bottles for use in the dairy, water and juice industries, including various high density bottles, as well as five-gallon polycarbonate water bottles. In addition, the Company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines. The Company is also engaged in the manufacture and sale of tooling and molds used in the blow molding industry.

Portola Tech International (www.techindustries.com) is a leading manufacturer and marketer of plastic packaging components to the cosmetic, fragrance and toiletries industry. PTI's capabilities include injection and compression molding, thermal and ultraviolet metallizing, ultraviolet one coat spray technologies, silk screening, hot stamping, lining and multiple component assembly. In addition to offering the largest stock line of closures in the industry, with over 450 styles and sizes, PTI has a complementary line of heavy wall PETG and polypropylene jars.

Cohesant Technologies reports record FY sales, earnings

INDIANAPOLIS, Dec. 16, 2004 (BUSINESS WIRE) -- Cohesant Technologies Inc. reported record sales and earnings for the fiscal year and record earnings for the fourth quarter ended Nov. 30, 2004.

For the fiscal year, net sales increased 12% to $19,312,180 from $17,276,183 for 2003. Net income increased 29% to $1,802,267, compared to $1,400,609, or $.54 per diluted share last year.

For the fourth quarter, net income was $442,890, an increase of 10% over the $401,637 reported in the previous year. Net sales for the quarter decreased 2% to $4,670,324 from $4,750,177 recorded in the comparable period last year. Although Equipment sales were stronger than the comparable period last year, inclement weather in key geographic areas delayed many construction projects and exhausted municipal maintenance budgets both of which contributed to a decrease in Material sales which offset the gains on the Equipment side of the business.

Morris H. Wheeler, company president and CEO, stated, "This marks our 7th consecutive year of increased sales and earnings per share growth. A 14% increase in Equipment sales and a 7% increase in sales of Coatings and Grouts accounted for the growth in our annual sales totals. In addition, margin improvements on the Equipment side of our business and general cost-efficiency programs bolstered the bottom line growth. Cohesant's earnings are beginning to show the positive effects of our one-year old program to streamline our business processes. Our next goal is to bolster and enhance our sales growth in both our lines of business."

Cohesant Technologies Inc., based in Indianapolis, Ind., designs, develops, and manufactures specialized dispense equipment and specialty coating products through its two subsidiaries: GlasCraft Inc. and Raven Lining Systems Inc. GlasCraft and, to a limited extent, Raven Lining Systems manufactures dispense equipment for applying plural component materials such as polyesters, polyurethanes, polyureas, and epoxies. Raven Lining Systems, Inc., manufactures and sells the Raven and AquataPoxy line of high-performance coating systems. These systems provide corrosion protection and structural renewal when coating and rehabilitating all types of infrastructure in water, wastewater and industrial markets.

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