Pactiv Corporation

LAKE FOREST, Ill. – April 22, 2009 – For the quarter ended March 31, 2009, Pactiv Corporation (NYSE: PTV) today announced that income from continuing operations was a record $91 million, or $0.69 per share, compared with $35 million, or $0.26 per share, in 2008. Excluding a charge of $0.07 per share related to a restructuring program, first quarter 2008 earnings per share were $0.33. First quarter 2009 sales declined 5 percent to $766 million from $808 million, reflecting a 3-percent volume decline, 1-percent lower pricing, and 1-percent unfavorable foreign exchange.

“Compared with the first quarter of last year, we benefited from lower raw material costs, as well as lower logistics costs, and improved productivity. Our volume decline was mitigated by continued strong growth in cups and cutlery products. When we look at our performance compared with our January outlook, volume was better than we expected. That better performance, combined with strong productivity and other cost control measures, accounted for more than half of the improvement, while the remainder resulted from better spread (the difference between selling prices and raw material costs). We are managing our business well in this difficult and unpredictable economic environment,” said Richard L. Wambold, Pactiv’s chairman and chief executive officer.

First quarter gross margin was 38.3 percent compared with 26.0 percent in 2008, and operating margin was 21.8 percent compared with 9.8 percent last year. Both increases were driven primarily by favorable spread. Excluding the restructuring charge, the 2008 operating margin was 11.5 percent.

After a pension contribution of $100 million pretax and related favorable cash tax effects of approximately $50 million, free cash flow in the first quarter was $105 million compared with $2 million in 2008. The increase was a result of higher income, improved working capital, and lower capital expenditures.

Business Segment Results

Hefty^® Consumer Products

First quarter sales of $283 million decreased 2 percent from $290 million, reflecting a 5-percent volume decline and 3-percent favorable pricing. Volume growth in cups and cutlery was offset by declines in waste bags and disposable plates.

Operating income was $74 million compared with $30 million in 2008. Favorable spread, as well as lower operating costs, more than offset lower volume and higher advertising and promotion expense, largely related to the launch of Hefty^® Odor Block^™ waste bags. Operating margin was 26.1 percent compared with 10.4 percent last year. Excluding the restructuring charge, 2008 operating income was $35 million and operating margin was 12.1 percent.

Foodservice/Food Packaging

First quarter sales were $483 million, down 7 percent from $518 million in 2008, driven by a 2-percent volume decrease, 3-percent lower pricing, and 2-percent unfavorable foreign exchange. Growth in cups and cutlery continued, partially as a result of new business.

Operating income was $95 million compared with $47 million in 2008, primarily driven by favorable spread, as well as lower operating costs. Operating margin was 19.7 percent compared with 9.1 percent in 2008. Excluding the restructuring charge, 2008 operating income was $55 million and operating margin was 10.6 percent.

Outlook

The second quarter EPS outlook is a range of $0.54 to $0.58. The full year EPS outlook has been raised to a range of $2.15 to $2.25, from a range of $1.80 to $2.00. Since the beginning of the year, resin costs have increased approximately 11 percent. The low end of the EPS range assumes resin costs stay at current levels, while the high end of the range assumes that resin costs adjust downward in the second half. The full year outlook includes non-cash pension income of $37 million pretax, $24 million after tax, or $0.18 per share.

Full year 2009 sales are expected to decline between 10 percent and 12 percent, an improvement from the prior outlook of a decline of 12 percent to 15 percent. The sales outlook incorporates normal selling price adjustments after a period of declining resin costs, as well as flat volume for the remainder of the year despite the recession. SG&A expense is estimated to be between $320 million and $330 million, up from $305 million to $315 million in the prior outlook. The 2009 tax rate is expected to be 36.5 percent.

After pension contributions of $200 million pretax, or $130 million after tax, free cash flow for 2009 is anticipated to be in a range of $230 million to $250 million, higher than the earlier outlook of $110 million to $130 million because of higher earnings and improved working capital. Depreciation and amortization expense is expected to be approximately $185 million, capital expenditures are estimated to be approximately $120 million, and the cash tax rate is estimated to be approximately 15 percent, down from an earlier estimate of 27 percent, due to the tax deductibility of pension contributions.

Other

This press release includes certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to GAAP is shown in the attached “Regulation G GAAP Reconciliations” or in the attached “Operating Results by Segment”.

Cautionary Statements

This press release includes certain “forward-looking statements” such as those in the Outlook section. A variety of factors may cause actual results to differ materially from these expectations including a slowdown in economic growth, changes in the competitive market, increased cost of raw materials, and changes in the regulatory environment.

More detailed information about these and other factors is contained in the Company’s Annual Report on Form 10-K at page 22 filed with the Securities and Exchange Commission as revised and updated by Forms 10-Q and 8-K as filed with the Commission.

Company Information

Pactiv Corporation (NYSE: PTV) is a leader in the consumer and foodservice/food packaging markets it serves. With 2008 sales of $3.6 billion, Pactiv derives more than 80 percent of its sales from market sectors in which it holds the No. 1 or No. 2 market-share position. Pactiv’s Hefty^® brand products include waste bags, slider storage bags, disposable tableware, and disposable cookware. Pactiv’s foodservice/food packaging offering is one of the broadest in the industry, including both custom and stock products in a variety of materials. For more information, visit www.pactiv.com.

04/22/2009

04/23/2009