Ball Corporation Announces Sale of Australia-based Ball Solutions Group Pty Ltd.

BROOMFIELD, Colo., Jan. 2 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE: BLL) announced today the sale of Ball Solutions Group Pty Ltd., to QinetiQ Pty Ltd. Ball Solutions Group Pty Ltd., a subsidiary of Ball Aerospace & Technologies Corp., is based in Canberra, Australia, and provides services primarily to the Australian Department of Defense.

Ball Aerospace has executed a share sale agreement with QinetiQ Pty Ltd, a wholly owned subsidiary of QinetiQ Group plc., to sell Ball Solutions Group Pty Ltd for a total cash consideration of approximately $10.5 million (Aus$12 million). Closing is subject to government approvals and other customary conditions, and is expected to occur during the first quarter of 2008.

"Ball Solutions Group fits well strategically with QinetiQ," said David L. Taylor, president and chief executive officer of Ball Aerospace. "Almost all of Ball Aerospace's business is in the United States, and we did not see any long-term benefit in remaining in Australia. We will continue to focus on growing our aerospace business in areas where we have strategic advantage."

Ball Solutions Group Pty Ltd. employs approximately 150 people primarily in 10 locations in Australia. It has annual revenues of approximately $25 million (Aus$29 million).

Ball Corporation is a supplier of high-quality metal and plastic packaging products for beverage, food and household products customers, and owns Ball Aerospace & Technologies Corp., a supplier of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 15,500 people worldwide and reported 2006 sales of $6.6 billion.

Forward-Looking Statements

This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99.2 in our Form 10-K, which are available at our Web site and at http://www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials, including recent significant increases in resin, steel, aluminum and energy costs, and the ability to pass such increases on to customers; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions, including our beverage can end project; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; and changes in foreign exchange rates, tax rates and activities of foreign subsidiaries. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; successful or unsuccessful acquisitions, joint ventures or divestitures; integration of recently acquired businesses; regulatory action or laws including tax, environmental and workplace safety; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.

SOURCE Ball Corporation

Released January 2, 2008