Silgan Holdings Reports Second Quarter Earnings and Confirms Full Year 2006 Estimate

Silgan Holdings Inc. (NASDAQ: SLGN), a leading supplierof consumer goods packaging products, today reported second quarter2006 net income of $16.4 million, or $0.43 per diluted share, ascompared to second quarter 2005 net income of $15.4 million, or $0.41per diluted share. Results for 2006 included rationalization chargesof $0.10 per diluted share net of tax for the recently announcedshutdown of the metal container manufacturing facility in St. Paul,Minnesota and on-going elements of the rationalization of the plasticcontainer facility in Valencia, California. Results for the secondquarter of 2005 included a loss on early extinguishment of debt of$0.18 per diluted share net of tax.

"Results in the second quarter were in-line with our expectationsand we continue to feel comfortable with our full year estimates for2006," said Tony Allott, President and CEO. "While operating marginsbefore rationalization charges declined in the metal food containerbusiness due primarily to the timing of certain sales, we anticipatehigher margin levels in the last half of the year. Plastic volumeswere down due to tepid demand driven at least in part by inventoryreductions by retailers, however, our cost reduction efforts in thisbusiness allowed us to maintain operating margins. Our closuresbusiness continued to benefit from strong domestic volumes," Mr.Allott continued. "We also achieved two very important strategicinitiatives during the quarter, completing the White Cap Europeacquisition and initiating the closing of our metal food containerfacility in St. Paul, Minnesota, both of which are expected to deliverpositive earnings and cash returns in the coming years," concluded Mr.Allott.

Net sales for the second quarter of 2006 were $597.2 million, anincrease of $16.0 million, or 2.8 percent, as compared to $581.2million for the same period in 2005. This increase was primarily dueto the acquisition of White Cap Europe, the pass through of higher rawmaterial and other inflationary costs in all three businesses andstrong domestic volumes in the closures business, partially offset byvolume declines in the plastic container business.

Income from operations for the second quarter of 2006 was $39.9million, a decrease of $9.6 million as compared to $49.5 million forthe second quarter of 2005. This decrease was primarily due to theimpact of pre-tax rationalization charges of $6.2 million.Additionally, inflation in manufacturing costs, a less favorable mixof products sold in the metal food containers business, lower plasticvolumes and the impact of the inventory write-up from the White CapEurope acquisition, as required by purchase accounting, negativelyimpacted operating results.

Interest and other debt expense for the second quarter of 2006 was$14.2 million, a decrease of $10.5 million as compared to the sameperiod in 2005. This decrease was due to the impact of the $11.0million loss on early extinguishment of debt recorded in the secondquarter of 2005, partially offset by higher outstanding borrowings dueto the White Cap Europe acquisition and the effects of higher marketinterest rates.

As a result of the acquisition of the White Cap Europe closuresbusiness and changes to the management reporting structure, theCompany is now reporting three operating segments which include MetalFood Containers, Plastic Containers and Closures, which includes thehistorical domestic business and the acquired internationaloperations.

Metal Food Containers

Net sales of $350.0 million in the metal food container businessfor the second quarter of 2006 were essentially flat with net salesfrom the same quarter a year ago. Higher average selling prices due tothe pass through of higher raw material and other costs were offset bya less favorable mix of products sold which resulted primarily from ashift in sales of certain products between quarters in the year.

Income from operations of the metal food container businessdecreased in the second quarter of 2006 to $18.9 million as comparedto $30.0 million for the same period in 2005 due primarily to thepre-tax rationalization charge of $5.8 million associated with the St.Paul closing, a less favorable mix of products sold and continuedinflationary pressures on manufacturing costs which were not fullyoffset by productivity and efficiency improvements during the quarter.Operating margin, including the St. Paul charge, decreased to 5.4percent from 8.6 percent over the same periods.

Plastic Containers

Net sales of the plastic container business were $145.0 million inthe second quarter of 2006, a decrease of $13.7 million, or 8.6percent, as compared to the second quarter of 2005. This decrease wasprimarily a result of significantly lower unit volumes resulting fromsoft demand in the personal care market, which was heavily impacted bythe backup in the supply chain as retailers implemented inventoryreduction programs throughout the quarter. This decline was partiallyoffset by higher average selling prices as a result of the passthrough of higher resin costs.

Income from operations of the plastic container business for thesecond quarter of 2006 was $11.8 million as compared to $12.9 millionin the second quarter of 2005, and operating margin remained constantat 8.1 percent over the same periods. Income from operations decreasedprimarily as a result of lower unit volumes and incrementalrationalization charges in the quarter, partially offset by thebenefits of productivity improvements and cost reductions implementedthroughout 2005.

Closures

Net sales of the closures business were $102.2 million in thesecond quarter of 2006, an increase of $29.1 million, or 39.8 percent,as compared to the second quarter of 2005. This increase was primarilya result of the acquisition of White Cap Europe, higher domestic unitvolumes and higher average selling prices due to the pass through ofincreased raw material costs.

Income from operations in the closures business for the secondquarter of 2006 increased $1.8 million to $10.7 million as compared to$8.9 million in the same quarter a year ago. This increase was aresult of unit volume growth in the domestic business, partiallyoffset by the impact of the inventory write-up for the White CapEurope business as a result of purchase accounting in connection withthe acquisition. Operating margin for the second quarter of 2006decreased to 10.4 percent from 12.2 percent in the prior year periodas a result of the impact of the inventory write-up discussed above.

Effective July 1, 2006, the Company completed the acquisition ofthe White Cap business in Turkey.

Six Months

Net income for the first six months of 2006 was $33.5 million, or$0.89 per diluted share, as compared to net income for the first sixmonths of 2005 of $28.3 million, or $0.76 per diluted share. Resultsfor the first six months of 2006 included one month of operations ofthe newly acquired White Cap Europe business and rationalizationcharges of $0.14 per diluted share net of tax, as compared withrationalization charges of $0.01 per diluted share net of tax and aloss on early extinguishment of debt of $0.18 per diluted share net oftax in the same period a year ago.

Net sales for the first six months of 2006 increased $55.9million, or 5.0 percent, to $1.17 billion as compared to $1.11 billionfor the first six months of 2005. This increase was largely the resultof higher average selling prices in both the metal food and plasticcontainer businesses primarily as a result of the pass through ofhigher raw material costs, the acquisition of White Cap Europe andstrong volumes in the domestic closures business, partially offset bylower volumes in the plastic container business and a less favorablemix of products sold in the metal food container business.

Income from operations for the first six months of 2006 was $79.5million, a decrease of $3.6 million, or 4.3 percent, from the sameperiod in 2005. The decrease in income from operations was primarilydue to the impact of pre-tax rationalization charges of $8.3 million,the impact of the inventory write-up in the newly acquired White CapEurope business, lower unit volumes in the plastic container businessand a less favorable mix of products sold in the metal food containerbusiness. These decreases were partially offset by strong operationalresults in the domestic closure business, continued benefits fromrationalization and integration activities at our manufacturingfacilities and resin benefits derived in the first quarter of 2006.

Interest and other debt expense for the first six months of 2006was $25.5 million, a decrease of $11.5 million as compared to thefirst six months of 2005. This decrease was primarily attributable tothe impact of the $11.0 million loss on early extinguishment of debtrecorded in the second quarter of 2005.

Dividend

On June 15, 2006, the Company paid a quarterly cash dividend inthe amount of $0.12 per share to holders of record of common stock ofthe Company on June 1, 2006. This dividend payment aggregated $4.5million.

Outlook for 2006

The Company's original earnings estimate for the full year 2006was $2.55 to $2.65 per diluted share, which excluded the impact ofrationalization charges. The Company's full year estimate ofrationalization charges is $0.22 per diluted share net of tax for theshutdown of the Valencia and St. Paul facilities. Based on thisestimate, the year-to-date financial performance and the outlook forthe back half of 2006, including operating margin improvement in themetal container business, the Company has confirmed its earningsestimate for 2006 in the range of $2.33 to $2.43 per diluted sharewhich now includes rationalization charges of $0.22 per diluted sharenet of tax.

The Company expects net income per diluted share for the thirdquarter of 2006 to be in the range of $1.00 to $1.10, which includesan anticipated rationalization charge of $0.05 per diluted share netof tax associated with the closing of the St. Paul facility. Thiscompares to net income per diluted share of $1.20 in the third quarterof 2005. This estimate of net income per diluted share for the thirdquarter of 2006 includes the expectation that tomato can volumes willbe delayed into the fourth quarter as a result of the wet weather inNorthern California early in the planting season.

Additionally, the Company currently has several opportunities toincrease investments in the base business as well as in the acquiredclosure operations, and therefore has increased estimates for capitalexpenditures to be in the range of $130 million to $140 million forthe full year 2006. As a result, the Company currently estimates thatthe year-end 2006 debt balance will be approximately $900 million ascompared to the current debt level of $1,170.9 million.

The Company's current earnings estimates for both the thirdquarter and full year include the impact of the White Cap Europeacquisition which is estimated to be neutral to earnings for the fullyear.

Conference Call

Silgan Holdings Inc. will hold a conference call to discuss theCompany's results for the second quarter of 2006 at 1:00 p.m. EasternTime on Thursday, July 27, 2006. The toll free number for domesticcallers is (800) 289-0743, and the number for international callers is(913) 981-5546. For those unable to listen to the live call, a tapedrebroadcast will be available until 5:00 p.m. Eastern Time on August4, 2006. To access the rebroadcast, the toll free number for domesticcallers is (888) 203-1112, and the number for international callers is(719) 457-0820. The pass code is 4042755.

Silgan Holdings is a leading North American manufacturer ofconsumer goods packaging products with annual net sales ofapproximately $2.5 billion in 2005. Silgan operates 64 manufacturingfacilities in the U.S., Canada and Europe. In North America, Silgan isthe largest supplier of metal containers for food products and aleading supplier of plastic containers for personal care products. Inaddition, Silgan is a leading supplier of metal, composite and plasticvacuum closures for food and beverage products in North America andEurope.

Statements included in this press release, which are nothistorical facts, are forward looking statements made pursuant to thesafe harbor provisions of the Private Securities Litigation Reform Actof 1995 and the Securities Exchange Act of 1934. Such forward lookingstatements are made based upon management's expectations and beliefsconcerning future events impacting the Company and therefore involve anumber of uncertainties and risks, including, but not limited to,those described in the Company's Annual Report on Form 10-K for 2005and other filings with the Securities and Exchange Commission.Therefore, the actual results of operations or financial condition ofthe Company could differ materially from those expressed or implied insuch forward looking statements.
SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the quarter and six months ended June 30,
(Dollars in millions, except per share amounts)

Second Quarter Six Months
-------------- ----------
2006 2005 2006 2005
---- ---- ---- ----
Net sales $ 597.2 $ 581.2 $1,167.1 $ 1,111.2

Cost of goods sold 521.9 503.4 1,020.6 971.2
-------- -------- --------- ----------

Gross profit 75.3 77.8 146.5 140.0

Selling, general and
administrative expenses 29.2 28.1 58.7 56.4

Rationalization charges 6.2 0.2 8.3 0.5
-------- -------- --------- ----------

Income from operations 39.9 49.5 79.5 83.1

Interest and other debt expense
before loss on early
extinguishment of debt 14.2 13.7 25.5 26.0

Loss on early extinguishment of
debt - 11.0 - 11.0
-------- -------- --------- ----------
Interest and other debt
expense 14.2 24.7 25.5 37.0

Income before income taxes 25.7 24.8 54.0 46.1

Provision for income taxes 9.3 9.4 20.5 17.8
-------- -------- --------- ----------

Net income $ 16.4 $ 15.4 $ 33.5 $ 28.3
======== ======== ========= ==========
Earnings per share: (1)
Basic net income per share $0.44 $0.42 $0.90 $0.77
Diluted net income per share $0.43 $0.41 $0.89 $0.76

Cash dividends per common share (1)
$0.12 $0.10 $0.24 $0.20

Weighted average shares (000's): (1)
Basic 37,354 37,081 37,313 37,002
Diluted 37,878 37,571 37,853 37,536

(1) Per share and share amounts have been restated for the two-for-one
stock split that occurred on September 15, 2005.


SILGAN HOLDINGS INC.
CONSOLIDATED SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)
For the quarter and six months ended June 30,
(Dollars in millions)

Second Quarter Six Months
-------------- ----------
2006 2005 2006 2005
---- ---- ---- ----
Net sales:
Metal food containers (a) $350.0 $349.4 $ 684.8 $ 659.4
Plastic containers 145.0 158.7 308.2 314.6
Closures (a) 102.2 73.1 174.1 137.2
------- ------- --------- ---------
Consolidated $597.2 $581.2 $1,167.1 $1,111.2
======= ======= ========= =========
Income from operations:
Metal food containers (a) (b) $ 18.9 $ 30.0 $ 37.1 $ 52.6
Plastic containers (c) 11.8 12.9 25.6 22.0
Closures (a) 10.7 8.9 21.3 13.6
Corporate (1.5) (2.3) (4.5) (5.1)
------- ------- --------- ---------
Consolidated $ 39.9 $ 49.5 $ 79.5 $ 83.1
======= ======= ========= =========


SILGAN HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in millions)

June 30, June 30, Dec. 31,
2006 2005 2005
---- ---- ----
Assets:
Cash and cash equivalents $ 23.9 $ 82.3 $ 20.5
Other current assets 825.2 737.2 500.0
Property, plant and equipment, net 867.8 776.1 758.1
Other assets, net 377.5 238.6 252.0
--------- --------- ---------
Total assets $2,094.4 $1,834.2 $1,530.6
========= ========= =========

Liabilities and stockholders' equity:
Current liabilities, excluding debt $ 326.1 $ 278.1 $ 319.3
Current and long-term debt 1,170.9 1,104.6 700.4
Other liabilities 292.8 218.0 237.5
Stockholders' equity 304.6 233.5 273.4
--------- --------- ---------
Total liabilities and stockholders'
equity $2,094.4 $1,834.2 $1,530.6
========= ========= =========

(a) Current and prior year results have been restated to present our
new Closures segment which includes the newly acquired White Cap
Europe closures business.

(b) Includes rationalization charges of $5.8 million for the three and
six months ended June 30, 2006.

(c) Includes rationalization charges of $0.4 million and $0.2 million
in the second quarter of 2006 and 2005, respectively, and $2.5
million and $0.5 million for the six months ended June 30, 2006
and 2005, respectively.