30.01.2003

Mandatory deposit puts burden on more than fifty businesses in Rhineland-Palatinate

Economics Minister Bauckhage pays visit to Schmalbach-Lubeca

 As part of a visit to Rasselstein-Hoesch in Andernach and Schmalbach-Lubeca in Weißenthurm, the Minister of Economics for Rhineland-Palatinate, Hans-Artur Bauckhage, provide information on the effects of the mandatory deposit, among other things.

On January 1, 2003, a deposit was introduced on all hitherto no-deposit, no-return beverage containers – although there is not yet any integrated return system covering the entire country. This has led to substantial drops in production at Schmalbach-Lubeca. In the first quarter of this year alone, the company is expecting to lose sales amounting to around € 50 million. The roughly 1,000 employees – of whom 500 work in Rhineland-Palatinate – have already been put on short time. "If the order books don't fill up soon," says Hanno C. Fiedler, chairman of Schmalbach-Lubeca, "we will not be able to avoid adjusting our production capacities, even if this means closing down plants."

At Rasselstein-Hoesch, the mandatory deposit could cause the curtailment of 400 of the total of 2200 jobs. At present, the drop in sales is still being offset by other markets. In addition, more than fifty of Schmalbach-Lubeca's other regional suppliers have been affected – including metalworking shops, operations that install electronic systems, paint suppliers, haulage companies, etc. – which have also put workers on short time owing to the introduction of the deposit and in some cases have even had to let employees go.

"The uncertainty that consumers, workers and the industry are suffering at present must be brought to an end as soon as possible. We must make every effort to ensure that the amendment to the packaging ordinance announced by the federal government is such as to help those involved achieve the clarity they need to do business," explained Hans-Artur Bauckhage, the Economics Minister.

In the short term, priority must be given to setting up a uniform, consumer-friendly return system nationwide, since the current confusion caused by the wide variety of different procedures used for taking back beverage containers has contributed to a substantial drop in sales on the market. "In the long term, the packaging ordinance must be thoroughly revised with the aim of easing the burden on citizens and giving businesses the security they demand before they will be willing to make any investments, "says Hanno C. Fiedler. "The amendment must not show favoritism and must steer clear of regulations that could distort the market."

Forward-Looking Statements
The information in this news release contains "forward-looking" statements. Actual results or outcomes may differ materially from those expressed or implied. As time passes, the relevance and accuracy of forward-looking statements contained in this release may change. The company currently does not intend to update any particular forward-looking statement except as it deems necessary at quarterly or annual release of earnings. Please refer to the Form 10-Q filed by Ball Corporation on August 12, 2003, for a summary of key risk factors that could affect actual results or outcomes. Factors that might affect the packaging segments of the company are: fluctuation in consumer and customer demand; competitive packaging material availability, pricing and substitution; the weather; fruit, vegetable and fishing yields; company and industry productive capacity and competitive activity; lack of productivity improvement or production cost reductions; regulatory action or laws, including the German mandatory deposit or other restrictive packaging laws and environmental and workplace safety regulations; availability and cost of raw materials, energy and transportation; the ability or inability to pass on to customers changes in these costs, particularly resin, steel and aluminum; pricing and ability or inability to sell scrap; international business risks (including foreign exchange rates and tax rates) particularly in the United States, Europe and in developing countries such as China and Brazil; and the effect of LIFO accounting on earnings. Factors that may affect the aerospace segment are: funding, authorization and availability of government contracts and the nature and continuation of those contracts; and technical uncertainty associated with aerospace segment contracts. Factors that could affect the company as a whole include those listed plus: successful and unsuccessful acquisitions, joint ventures or divestitures and the integration activities associated therewith including the integration and operation of the business of Schmalbach-Lubeca AG, now known as Ball Packaging Europe; the inability to purchase the company's common stock; insufficient or reduced cash flow; regulatory action or laws including those related to corporate governance and financial reporting, regulations and standards; actual and estimated business consolidation and investment costs and the net realizable value of assets associated with these activities; goodwill impairment; changes in generally accepted accounting principles or their interpretation; litigation; antitrust, intellectual property, consumer and other issues; strikes; boycotts; increases in various employee benefits and labor costs, specifically pension, medical and health care costs incurred in the countries in which Ball has operations; rates of return projected and earned on assets of the company's defined benefit retirement plans; interest rates and level of company debt, including floating rate debt; terrorist activities, war or catastrophic events that disrupt or impact production, supply or pricing of the company's goods and services, including raw materials and energy costs, or disrupt or impact the credit and financing of the company's businesses; and U.S. and foreign economic conditions.

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