Pactiv Corporation

LAKE FOREST, Ill - January 19, 2001 - Pactiv Corporation (NYSE: PTV) today announced a strategic action to strengthen its profitability, cash flow, and future growth potential. Consistent with its previously stated strategy, the Company has signed an agreement to sell its packaging polyethylene business to a subsidiary of Tyco International Ltd. Terms of the transaction were not disclosed. Early termination of the Hart-Scott-Rodino waiting period has been granted by the Federal Trade Commission, and the transaction is expected to close within 30 days. The packaging polyethylene business, which includes such products as industrial stretch film and institutional waste bags/can liners/food bags, will become part of Tyco Plastics. The sale is expected to be slightly accretive to Pactiv's earnings in 2001.

"Since our spin-off in November 1999, we have taken aggressive steps to shape Pactiv into a strong competitor in the specialty packaging industry," said Richard L. Wambold, Pactiv's chairman and chief executive officer. "We have cut costs and focused resources on our higher growth, higher margin businesses. The action we are announcing today will further improve our growth, margins, balance sheet, and cash flow," Wambold continued.

The impact of this transaction on fourth-quarter earnings will be discussed during the earnings release conference call on January 31.

Several statements in this press release are forward looking and are identified by the use of forward-looking words and phrases, such as "is expected to be" and "will further improve". These forward-looking statements are based on current expectations of (more) the Company (including its subsidiaries). Because forward-looking statements involve risks and uncertainties, the Company's plans, actions and actual results could differ materially. Where, in any forward-looking statement, the company or its management expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will result or will be achieved or accomplished. Among the factors that could cause plans, actions and results to differ materially from current expectations are: (i) the general political, economic and competitive conditions in markets and countries where the Company and its subsidiaries operate, including currency fluctuations and other risks associated with operating in foreign countries; (ii) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals; (iii) change in capital availability or costs; (iv) results of analysis regarding plans and strategic alternatives; (v) changes in consumer demand and prices, including decreases in demand for the Company's products and the resulting negative impact on its revenues and margins from such products; (vi) the cost of compliance with changes in regulations, including environmental regulations; (vii) workforce factors such as strikes or labor interruptions; (viii) material substitutions and increases in the costs of raw materials; (ix) the ability of the Company and its subsidiaries to integrate operations of acquired businesses quickly and in a cost-effective manner; (x) new technologies; (xi) changes by the Financing Accounting Standards Board or other accounting regulatory bodies of authoritative generally accepted accounting principles or policies; and (xii) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the company's control.

Pactiv Corporation, a $3 billion company, is a leading provider of advanced packaging solutions for the consumer, foodservice/food packaging and protective/flexible packaging markets. The specialty packaging leader currently operates 85 facilities in 17 countries around the world. For more information about Pactiv, log on to www.pactiv.com.