Sealed Air’s net sales for the full year 2008 increased 4% to $4.84 billion, compared with $4.65 billion in 2007. Excluding a $110 million favorable effect of foreign currency translation, net sales would have increased 2%.

Fourth quarter 2008 net sales decreased 7% to $1.17 billion, compared with $1.25 billion in 2007. Excluding a $66 million unfavorable effect of foreign currency translation, net sales would have decreased 1%. This unfavorable impact from foreign currency translation is attributable to the significant strengthening of the U.S. dollar against most foreign currencies in the quarter.

Commenting on the Company’s operating performance, William V. Hickey, President and Chief Executive Officer, stated:

“Our business finished the year with earnings in line with our October outlook, which anticipated a downturn in global economic conditions. Although market conditions negatively impacted our revenue, our operating results reflect the proactive steps we took earlier in the year to manage our business in these challenging times. We worked on improving our cash flow, invested less capital as our new capacity projects neared completion and reduced consolidated debt, net of cash and cash equivalents, by $91 million in the fourth quarter.

During the year we focused on managing pricing and supply chain initiatives to address volatile resin costs. These efforts, combined with market conditions late in the year, resulted in the recovery of most of the year-over-year increase in our resin costs. We also addressed all categories of costs through a combination of improved operating efficiencies, internal cost control measures and our cost reduction and productivity program. Additionally, we continued to realize the benefits from our ongoing global manufacturing strategy. As a result of the above, we achieved a 220 basis point increase sequentially in our fourth quarter gross profit as a percentage of net sales. We achieved these results while building upon the strengths of our Company, maintaining our market position and offering customers innovative solutions that differentiate their products and deliver recognizable savings.”

Financial Highlights for the Fourth Quarter

Net sales decreased 7% to $1.17 billion, compared with $1.25 billion for the fourth quarter of 2007. Excluding the $66 million unfavorable effect of foreign currency translation, net sales would have decreased 1%. The decrease in net sales resulted from an $87 million reduction in unit volumes primarily in Protective Packaging, which was partially offset by a $63 million favorable effect of product price/mix and a $7 million net effect from acquisitions and divestitures.

Cost of sales decreased to $861 million compared with $907 million for the fourth quarter of 2007. The decrease was primarily due to a $54 million favorable effect of foreign currency translation. Excluding the favorable effect of foreign currency translation, cost of sales would have increased $8 million, which was primarily due to higher input costs, including freight and energy costs of approximately $5 million.

Gross profit decreased to $308 million, or 26.3% of net sales, compared with $344 million, or 27.5% of net sales, for the fourth quarter of 2007. The decrease in gross profit as a percentage of net sales was primarily due to the impact of the decline in unit volumes mentioned above and the net unfavorable effect of foreign currency translation, which was partially offset by favorable product price/mix.

Gross profit as a percentage of net sales increased sequentially from 24.1% of net sales for the third quarter of 2008. This increase as a percentage of net sales was primarily due to lower average petrochemical-based raw material costs and the favorable effect of product price/mix in the fourth quarter of 2008.

Marketing, administrative and development expenses decreased to $172 million, or 14.7% of net sales, compared with $198 million or 15.8% of net sales for the fourth quarter of 2007, reflecting tight control of expenses and savings from the Company’s cost reduction and productivity program.

The Company recorded an additional $21 million restructuring charge. The global manufacturing strategy represented $15 million of this charge. An additional $6 million was related to the cost reduction and productivity program announced in the third quarter, which brings the full year 2008 cost associated with this program to $66 million.

Operating profit decreased to $114 million, or 9.8% of net sales, primarily due to the items mentioned above. This is compared with $145 million, or 11.6% of net sales, for the fourth quarter of 2007. Excluding restructuring and other charges, operating profit would have been $136 million, or 11.6% of net sales, for the fourth quarter of 2008 compared with $146 million, or 11.7% of net sales, for the fourth quarter of 2007.

Operating profit as a percentage of net sales, excluding restructuring and other charges, increased sequentially from 8.2% of net sales for the third quarter of 2008.

The Company recorded a $20 million pre-tax charge as a result of recognizing an additional impairment related to an “other-than-temporary” decline in the fair market value of its auction rate securities investments.

The Company had an effective income tax rate of 11.3% for the fourth quarter of 2008 compared with an effective income tax rate of 22.6% for the fourth quarter of 2007. The lower effective income tax rate in the fourth quarter of 2008 was due primarily to the lower level of pre-tax earnings as well as a favorable mix. This favorable mix was primarily due to the impact of the charges related to the impairment of the available-for-sale securities and the global manufacturing strategy restructuring and other charges.

Business Segment Review

Food Packaging Segment

The Company’s Food Packaging segment net sales for the fourth quarter decreased 3% to $503 million compared with $517 million last year. Excluding a $31 million unfavorable effect of foreign currency translation, segment net sales would have increased 3%.

The increase in net sales primarily reflects favorable product price/mix in North America and Latin America. This increase was partially offset by a decrease in unit volumes primarily in Brazil. Although more Brazilian processors have been authorized to export to Europe, a decline in consumption, attributed to weak economic conditions in Europe, has reduced the demand for Brazilian beef.

Operating profit for the fourth quarter was $67 million, or 13.4% of Food Packaging net sales, compared with $68 million, or 13.2% of net sales, in 2007. The increase in operating profit was due to favorable product price/mix, which was partially offset by the decline in unit volumes mentioned above and higher average petrochemical-based raw material costs. Operating profit as a percentage of net sales increased sequentially from 7.7% of net sales for the third quarter of 2008.

Food Solutions Segment

The Company’s Food Solutions segment net sales for the fourth quarter decreased 5% to $237 million compared with $250 million last year. Excluding an $18 million unfavorable effect of foreign currency translation, segment net sales would have increased 2%.

The increase in net sales primarily reflects the positive impact of product price/mix in North America and unit volume growth in the Asia-Pacific region. The increase was largely offset by a decline in unit volumes in Europe due to reduced fresh red meat consumption as a result of challenging economic conditions and a decline in unit volumes in North America due to a previously announced change in a packaging format at one retailer in late 2007.