O-I Announces Aggressive Plan To Slash Carbon Footprint

Glass packaging maker to cut energy consumption by 50%; carbon emissions by 65%

PERRYSBURG, Ohio, May 5, 2010 - Owens-Illinois, Inc. (NYSE: OI), the world's largest manufacturer of
glass packaging, today announced an aggressive plan to significantly reduce
energy consumption and carbon emissions across its worldwide operations
during the next decade.

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O-I recently conducted a complete life cycle assessment of the
environmental impact of glass containers, which will serve as a crucial
baseline for tracking the company's progress. The assessment, which included
data comparing glass with aluminum and Polyethylene Terephthalate (PET),
covered every aspect of the lifecycle of glass - from raw material extraction
to transportation to recycling, reuse or disposal.

With 2007 as a baseline, O-I intends to achieve the following by 2017:

    - Cut its global energy consumption by 50 percent
    - Reduce carbon dioxide-equivalent emissions by 65 percent
    - Nearly double its use of recycled glass so that a global average
      of 60 percent of each O-I container is recycled material
    - Eliminate workplace accidents

"Our recent life cycle assessment showed that glass already has a smaller
carbon footprint than other packaging materials. But, we see room for
additional improvement in the carbon footprint of glass and our company as
the world's leading maker of glass packaging," said O-I Chief Executive
Officer Al Stroucken. "While our goals are extremely aggressive, we are
confident that they are achievable and that they will have a significant and
positive impact on the environment. Our goal is to be the world's most
sustainable glass packaging maker."

O-I already has taken a number of steps to meet these goals, including
reducing some bottle weights by nearly 30 percent, cutting energy usage by 8
percent in the past three years and launching safety education programs
throughout the company.

Achieving the company's recycling goals may require addressing
fundamental challenges in the way recycling systems currently function.
"Recycling systems work well in certain parts of the world. Europe has the
most sophisticated and successful programs, but in the United States and
other countries, a significant amount of glass slated for recycling actually
ends up in landfills," said Jay Scripter, O-I vice president of
sustainability. "We want to use that glass to make new glass containers. O-I
has an opportunity to be a leader on this issue and make a significant
impact."

Glass is the only packaging material that can be recycled an infinite
number of times. Using recycled glass directly reduces the amount of energy
required to process raw materials. Every 10 percent of recycled glass used in
production cuts carbon emissions by 5 percent and saves 3 percent in energy
use. Currently, the average recycled content in O-I bottles is an
industry-leading 36 percent.

To ensure successful implementation of its sustainability initiatives,
O-I has appointed a senior-level steering committee, led by CEO Al Stroucken,
and created dedicated action teams to lead the efforts, oversee progress and
ensure success. The company intends to issue reports on its progress in
achieving these sustainability goals in the future.

About O-I

Millions of times a day, O-I glass containers deliver many of the world's
best-known consumer products to people all around the world. With the leading
position in Europe, North America, Asia Pacific and Latin America, O-I
manufactures consumer-preferred, 100-percent recyclable glass containers that
enable superior taste, purity, visual appeal and value benefits for our
customers' products. Established in 1903, the company employs more than
22,000 people with 78 plants in 22 countries. In 2009, net sales were US$7.1
billion. For more information, visit www.o-i.com.

Stephanie Johnston, O-I Corporate Communications, +1-567-336-7199, stephanie.johnston at o-i.com / NOTE TO EDITORS: Copies of Owens-Illinois news releases are available at the Owens-Illinois web site atwww.o-i.com or at www.prnewswire.com