First Quarter Highlights    --  Gross profit improves to 14.5% from 13.5% of net sales   --  Segment income rose 4.0% to $156 million and to 9.3% of net sales from       8.1%    --  Diluted earnings per share improved to $0.25 from $0.17   

Net sales in the first quarter were $1,684 million compared to $1,863 million in the first quarter of 2008. The decrease was primarily due to $189 million from foreign currency translation. Approximately 71% of net sales were generated outside the U.S. in the first quarter compared to 74% in the same period last year.

First quarter gross profit was $245 million compared to $252 million in the 2008 first quarter. As a percentage of net sales, gross profit improved to 14.5% in the first quarter from 13.5% in the first quarter last year. Global beverage can unit volume growth, cost containment initiatives, increased operating efficiencies and product mix partially offset a $29 million increase in pension expense and $29 million of unfavorable foreign currency translation.

Selling and administrative expense in the first quarter was $89 million compared to $102 million in last year's first quarter reflecting a $10 million benefit from foreign currency translation.

Segment income (a non-GAAP measure defined by the Company as gross profit less selling and administrative expense) improved to $156 million in the first quarter over the $150 million in the 2008 first quarter. Foreign currency translation decreased segment income by $19 million in the first quarter of 2009 compared to the same period last year. Segment income as a percentage of net sales expanded to 9.3% in the first quarter of 2009 over 8.1% in the first quarter of 2008.

Commenting on the quarter, John W. Conway, Chairman and Chief Executive Officer, stated, "We are very pleased with the results of what is our seasonally smallest quarter. Overall, our businesses and demand for our products held up well and importantly, the quality of earnings was excellent. We were able to recover appropriate price increases for steel tinplate used in food and aerosol cans, improve operating efficiencies, expand margin to net sales and increase segment income. Undoubtedly, the economic environment will make 2009 challenging. However, Crown remains positioned to benefit from its geographically diverse portfolio of metal packaging businesses around the world including the still growing regions of South America, North Africa, the Middle East, China, and Southeast Asia."

Interest expense in the first quarter was $61 million compared to $77 million in the first quarter of 2008. The decrease reflects the impact of lower average borrowing rates, lower average net debt outstanding and foreign currency translation of $5 million.

During the first quarter of 2009, the Company recorded a net charge of $5 million ($0.03 per diluted share) related to the closure of its non-consolidated PET plastic bottle joint-venture in Brazil. The charge is reflected in equity earnings. Included within net income in the 2008 first quarter, the Company recorded a net charge of $2 million, or $0.01 per diluted share, for the loss on early extinguishments of debt.

Net income attributable to Crown Holdings in the first quarter was $40 million, a 48% increase over the $27 million in the first quarter of 2008. Earnings per diluted share in the first quarter grew 47% to $0.25 compared to $0.17 in the 2008 first quarter.

Net debt (a non-GAAP measure defined by the Company as total debt less cash) was $435 million lower at March 31, 2009 than at March 31, 2008, primarily the result of $329 million in free cash flow generated in the twelve months ended March 31, 2009 and foreign currency translation of $144 million. Currency translation reduced net debt by $33 million from December 31, 2008.

   Debt and cash amounts were:                     March 31,   December 31,  March 31,    December 31,                     2009         2008         2008          2007                     ----         ----         ----          ----   Total debt      $3,398       $3,337       $3,819        $3,437   Cash               296          596          282           457                      ---          ---          ---           ---   Net debt        $3,102       $2,741       $3,537        $2,980                   ======       ======       ======        ======   Receivables    securitization   $204         $234         $231          $272                   ======       ======       ======        ======    

During the first quarter of 2009, the Company adopted SFAS 160, "Noncontrolling Interests in Consolidated Financial Statements," and the financial statements included herein present noncontrolling interests (formerly called "minority interests") in accordance with SFAS 160.

Non-GAAP Measures

Segment income, free cash flow and net debt are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures). Non-GAAP measures should not be considered in isolation or as a substitute for net income, cash flow or total debt data prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

The Company views segment income and free cash flow as the principal measures of performance of its operations and for the allocation of resources. The Company believes net debt is a useful measure of the Company's debt levels. Segment income, free cash flow and net debt are derived from the Company's Consolidated Statements of Operations and Cash Flows and Consolidated Balance Sheets, respectively, and reconciliations to segment income, free cash flow and net debt can be found within this release.