Pregis Announces First Quarter 2008 Financi...(recurring charges related to acqui...),Health

acquisitions and dispositions 5,214 6,238

Other, principally executive

management severance and

recruiting expenses 4,830 6,299

Other adjustments:

Amounts paid pursuant to management

agreement with Sponsor 1,981 1,698

Pro forma earnings and costs savings 2,084 -

Adjusted EBITDA ("Consolidated Cash

Flow") $109,289 $109,142

Note to above:

EBITDA is defined as net income before interest expense, interest income,

income tax expense, depreciation and amortization. Adjusted EBITDA,

referred to as Consolidated Cash Flow within the context of the Company's

indentures, is presented herein because it is a material element of the

fixed charge coverage ratio and secured indebtedness leverage ratio

included in the Company's indentures.

Pregis Holding II Corporation

First Quarter 2008

Supplemental Information

(Unaudited)

(Amounts and percentage changes are approximations due to rounding.)

Gross Margin Calculations

Three Months Ended March 31,

(dollars in millions) 2008 2007 Change

Net sales $259.3 $239.0 $20.3

Cost of sales, excluding

depreciation and amortization (202.5) (178.0) (24.5)

Gross margin $56.8 $61.0 $(4.2)

Gross margin, as a percent of net

sales 21.9% 25.5% (3.6)%

Net Sales Analysis b
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