AptarGroup Reports All-Time High Quarterly Results; Declares Dividend

AptarGroup, Inc. (NYSE:ATR) today reported the highest quarterly results in its history. The Company’s Board of Directors also declared a quarterly dividend of $.13 per share. Third Quarter 2007 Highlights Earnings per share climbed 40% to a record $.56 per share German tax law changes contributed $.03 per share Sales rose 20% to a record $485.7 million Pharma and Beauty & Home segments were particularly strong $19.7 million spent to repurchase 545,000 shares THIRD QUARTER RESULTS For the quarter ended September 30, 2007, sales increased 20% to a record $485.7 million, up from $404.9 million a year ago. Strong dispensing system sales accounted for 13% of the growth while changes in exchange rates contributed 6% and acquisitions added 1%. Commenting on the quarter, Carl Siebel, President and CEO, said, "I’m pleased to report that we had another excellent quarter. Our international presence and dedication to being the innovation leader in our industry enabled us to once again post increased sales and profits across each of our business segments.” Third Quarter Segment Sales Analysis (Growth Over Prior Year)     Beauty &Home   Closures   Pharma   TotalAptarGroup Product and Custom Tooling Sales 15%   5% 21% 13% Currency Effects 6% 5% 7% 6% Sales from Acquired Companies 1%   1%   0%   1% Total Growth 22%   11%   28%   20% Operating income increased to a record $57.4 million, up 29% from $44.6 million a year ago primarily due to the strength of the Pharma and Beauty & Home segments. Beauty & Home segment income (income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items) increased 38% to $25.6 million driven by demand from the personal care and fragrance/cosmetic markets. Strong demand for nasal spray pumps and metered dose inhaler valves drove Pharma segment income to $29.4 million or an increase of 35%. Closures segment income rose 6% to $12.5 million primarily due to stronger sales to the food and beverage market. Diluted earnings per share increased 40% to a record $.56 per share compared to $.40 per share in the prior year. Included in 2007 earnings per share is a positive tax benefit of approximately $.03 per share related to tax law changes in Germany. Siebel added, "Record earnings were driven by strong demand for our innovative products, particularly in our Pharma and Beauty & Home segments where we also realized improved operating performance. Our Closures segment also posted increased profits primarily due to strong demand from the European and Latin American markets. However, Closures’ growth was hampered by softer demand from the U.S. personal care market.” YEAR-TO-DATE RESULTS For the year-to-date, sales increased 19% to a record $1.4 billion from approximately $1.2 billion a year ago. Dispensing system sales increased 12% while changes in exchange rates added 6% and acquisitions contributed 1% to AptarGroup’s top line. Operating income increased to a record $161.6 million, up 34% from $120.8 million a year ago. Diluted earnings per share, including the $.03 per share positive tax benefit recorded in the third quarter, increased 41% to $1.48 per share compared to $1.05 per share a year ago. OUTLOOK Siebel commented, "Looking to the fourth quarter, we expect each of our business segments to grow over the prior year with notable strength coming from our Pharma and Beauty & Home segments. We estimate that diluted earnings per share for the fourth quarter will be in the range of $.43 to $.46 per share, or an increase of 13% to 21%, compared to $.38 per share reported a year ago.” CASH DIVIDEND AND SHARE REPURCHASE PROGRAM The Board of Directors declared a quarterly dividend of $.13 per share, payable November 21, 2007 to shareholders of record as of October 31, 2007. Also during the quarter, the Company repurchased approximately 545,000 shares of common stock for $19.7 million leaving approximately 2.5 million shares authorized for repurchase at the end of the third quarter. OPEN CONFERENCE CALL There will be a conference call on Thursday October 18, 2007 at 8:00 a.m. CDT to discuss the Company’s third quarter results for 2007. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site. AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia, and South America. For more information, visit the AptarGroup web site at www.aptargroup.com. This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, those related to overall business conditions in the various markets in which AptarGroup operates, the competitive marketplace, fiscal and monetary policy, changes in foreign exchange rates, direct or indirect consequences of acts of war or terrorism, labor relations and other risks and uncertainties discussed from time to time in AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements. APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited)         (In Thousands, Except Per Share Data) CONSOLIDATED STATEMENTS OF INCOME   Three Months Ended Nine Months Ended September 30, September 30,   2007     2006     2007     2006     Net Sales $ 485,692 $ 404,905 $ 1,408,409 $ 1,178,998 Cost of Sales (exclusive of depreciation shown below) 330,438 274,517 949,293 796,821 Selling, Research & Development and Administrative 65,773 57,406 205,303 177,863 Depreciation and Other Amortization   32,065     28,340     92,246     83,503   Operating Income 57,416 44,642 161,567 120,811 Other Income/(Expense): Interest Expense (4,880 ) (4,479 ) (14,335 ) (12,186 ) Interest Income 2,222 1,012 5,600 2,753 Equity in Results of Affiliates 158 177 426 420 Minority Interests (22 ) 38 (4 ) (94 ) Miscellaneous, net   (303 )   (219 )   (1,513 )   (1,154 ) Income before Income Taxes 54,591 41,171 151,741 110,550 Provision for Income Taxes   15,196     12,928     45,798     34,829   Net Income $ 39,395   $ 28,243   $ 105,943   $ 75,721     Net Income per Share- Basic (a) $ 0.58   $ 0.41   $ 1.54   $ 1.08   Net Income per Share- Diluted (a) $ 0.56   $ 0.40   $ 1.48   $ 1.05     Average Number of Shares– Basic (a) 68,488 69,292 68,902 69,838 Average Number of Shares- Diluted (a) 70,909 70,878 71,717 72,066   (a) Previously reported Net Income per Share and Average Number of Shares have been restated to reflect the two-for-one stock split on May 9, 2007. APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) CONSOLIDATED BALANCE SHEETS   September 30, 2007 December 31, 2006 ASSETS   Cash and Equivalents $ 270,073 $ 170,576 Receivables, net 380,187 320,969 Inventories 263,426 226,455 Other Current Assets   64,280   44,820 Total Current Assets 977,966 762,820 Net Property, Plant and Equipment 628,745 591,077 Goodwill, net 219,903 207,882 Other Assets   28,077   30,233 Total Assets $ 1,854,691 $ 1,592,012   LIABILITIES AND STOCKHOLDERS' EQUITY   Short-Term Obligations $ 207,065 $ 127,424 Accounts Payable and Accrued Liabilities   340,368   272,761 Total Current Liabilities 547,433 400,185 Long-Term Obligations 146,545 168,877 Deferred Liabilities   85,733   76,550 Total Liabilities 779,711 645,612 Stockholders' Equity   1,074,980   946,400 Total Liabilities and Stockholders' Equity $ 1,854,691 $ 1,592,012 APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) SEGMENT INFORMATION       Three Months Ended Nine Months Ended September 30, September 30,     2007     2006     2007     2006   NET SALES   Beauty & Home $ 258,613 $ 212,400 $ 750,757 $ 615,291 Closures 126,519 113,808 368,032 328,738 Pharma 100,559 78,632 289,617 234,707 Other   1     65     3     262   Total Net Sales $ 485,692   $ 404,905   $ 1,408,409   $ 1,178,998     SEGMENT INCOME (1)   Beauty & Home $ 25,561 $ 18,487 $ 78,136 $ 54,872 Closures 12,494 11,825 39,838 34,548 Pharma 29,407 21,731 78,445 58,642 Corporate Expenses and Other   (10,213 )   (7,405 )   (35,943 )   (28,079 ) Total Income Before Interest and Taxes $ 57,249 $ 44,638 $ 160,476 $ 119,983 Less: Interest Expense, Net   2,658     3,467     8,735     9,433   Income before Income Taxes $ 54,591   $ 41,171   $ 151,741   $ 110,550     SEGMENT INCOME % Beauty & Home 9.9 % 8.7 % 10.4 % 8.9 % Closures 9.9 % 10.4 % 10.8 % 10.5 % Pharma 29.2 % 27.6 % 27.1 % 25.0 %   Income before Interest and Taxes   11.8 %   11.0 %   11.4 %   10.2 %   Notes to Condensed Consolidated Financial Statements: (1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option and corporate expenses, income taxes and unusual items.