The Company expects to make capital expenditures of approximately $2.3 million related to the relocation of certain assets from the Cleveland facility to other production facilities, $1.2 million of which will occur in fiscal 2008. The Company estimates that closing the facility, including capital expenditures, will require approximately $4.2 million in cash, net of expected income tax benefits. The Company estimates $1.7 million will be expended in fiscal 2008.

Corporate

Undistributed corporate expenses (excluding depreciation and amortization) were $3.7 million for the second quarter of fiscal 2008 compared to $3.5 million for the second quarter of fiscal 2007. The second quarter of fiscal 2008 includes a favorable adjustment in our allowance for doubtful accounts of $1.0 million as the result of continued low bad debt experience, and includes non-cash stock-based compensation of $1.8 million associated with modifications made to pre-IPO stock options. The second quarter of fiscal 2007 included $0.5 million of bad debt expense.

Total debt was $423.2 million at the end of the quarter, down $2.8 million from December 31, 2007. Cash and cash equivalents decreased from $23.8 million at the beginning of the quarter to $13.7 million at the end of the second quarter, primarily as a result of seasonal increases in working capital and capital expenditures. Second quarter capital expenditures totaling $8.0 million were focused on new plastic product development in addition to routine quality, productivity and equipment refurbishment projects. Full year fiscal 2008 capital expenditures are forecasted to be $33.0 - $35.0 million as the Company completes projects for plastic packaging product development and aerosol components, and facilitates the closure of two manufacturing plants. Capital expenditures are expected to return to the Company's base-line level of $20.0 - $22.0 million in fiscal 2009.

Outlook for Fiscal 2008

'We continue to operate in a challenging market environment,' stated Mr. Roessler. 'As we move into what has traditionally been our strongest quarter, demand continues to be weaker than expected, negatively impacting our volumes. We are now expecting lower sales for the second half of the year, the effect of which we do not believe will be fully offset by our ongoing cost containment initiatives.'

    With regard to specific guidance the Company provides the following:
    -- Third fiscal quarter 2008 (ending June 29, 2008) adjusted diluted EPS
       of $0.26 - $0.31, and adjusted EBITDA of $31.0 - $33.0 million.
       Expectations include $1.8 million of non-cash stock-based compensation
       expense and exclude restructuring charges associated with the Company's
       closure of two manufacturing facilities.
    -- Full year fiscal 2008 expectations as revised from previous guidance:
       adjusted diluted EPS of $0.55 - $0.60, and adjusted EBITDA of $104.0-
       $106.0 million. Full year expectations include $7.2 million of non-cash
       stock-based compensation expense, but exclude potential restructuring
       charges and the second quarter adjustment to the allowance for doubtful
       accounts.
    -- As previously stated, full year fiscal 2008 free cash flow (net cash
       provided by operating activities less capital expenditures) is expected
       to be in the range of $32.0-$34.0 million.

Conference Call

The Company will hold a conference call tomorrow morning, May 13, 2008, at 10:00 a.m. (EDT) to discuss this news release. Forward-looking and other material information may be discussed on the conference call. The dial-in numbers for the conference call are 866-272-9941, or for international 617-213-8895 and the access passcode is 39931834. A replay of the conference call will be available until midnight on May 20. The dial-in numbers for the replay are 888-286-8010, or for international 617-801-6888 and the access passcode is 48818114.

About BWAY Holding Company

BWAY Holding Company is a leading North American manufacturer of general line rigid metal and plastic containers. The Company operates 22 plants throughout the United States and Canada serving industry leading customers on a national basis.

Cautionary Note Regarding Forward-Looking Statement

This document contains 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place reliance on these statements. Forward-looking statements include information concerning our liquidity and our possible or assumed future results of operations, including descriptions of our business strategies. These statements often include words such as 'believe,' 'expect,' 'anticipate,' 'intend,' 'plan,' 'estimate,' 'seek,' 'will,' 'may' or similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. As you read and consider this document, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties and assumptions. Many factors could affect our actual financial results and could cause actual results to differ materially from those expressed in the forward-looking statements. Some important factors include competitive risk from other container manufacturers or self-manufacture by customers, termination of our customer contracts, loss or reduction of business from key customers, dependence on key personnel, changes in steel, resin, other raw material and energy costs or availability, product liability or product recall costs, lead pigment and lead paint litigation, increased consolidation in our end markets, consolidation of key suppliers, deceleration of growth in our end markets, increased use of alternative packaging, labor unrest, environmental, health and safety costs, management's inability to evaluate and selectively pursue acquisitions, fluctuation of our quarterly operating results, an increase in interest rates, inability to repay or refinance the senior subordinated notes, restrictions in our debt agreements, fluctuations of the Canadian dollar, and the other factors discussed in our filings with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward-looking statements contained in this document might not prove to be accurate and you should not place undue reliance upon them. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measure

The Company provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). Presentation of non-GAAP measures such as, but not limited to 'EBITDA', 'adjusted EBITDA', 'EBIT', 'adjusted EBIT', 'adjusted net income (loss)', and 'adjusted net income (loss) per diluted share' provide investors with an alternative method for assessing our operating results in a manner that enables them to more thoroughly evaluate our performance. These non-GAAP measures provide a baseline for assessing the Company's future earnings expectations. BWAY management uses these non-GAAP measures for the same purpose. The non-GAAP measures included in this release are provided to give investors access to the types of measures that we use in analyzing our results.

BWAY's calculation of non-GAAP financial measures is not necessarily comparable to similarly titled measures reported by other companies.