U.S. Can Announces Continuing Strong Results in the Third Quarter

Oak Brook, Ill. (PROTEXT) - U.S. Can Corporation's (NYSE: USC)third quarter earnings before an extraordinary item related toearly debt repurchases increased to $6.0 million or $0.44 pershare (a 47% increase over comparable 1998 results). Thirdquarter 1998 included a restructuring provision and adiscontinued operations charge for a divested business. Earningsper share for 1998, before the aforementioned provision anddiscontinued operations, were $0.30 per share. Final earnings pershare after the extraordinary item were $5.5 million or $0.40 pershare in the third quarter of 1999 compared to a loss of $(25.9)million or $(1.94) per share in 1998. U.S. Can Chairman and CEO Paul W. Jones said, "I am pleasedwith our trend of positive results from our continued emphasis onproductivity and market focus." He cited higher operatingmargins and lower interest expense as the primary contributors tothe improved results. Mr. Jones stated that, "Despite weather difficulties thataffected some of our customers, I am delighted that we achievedour objectives during the quarter. We look forward to continuingimprovement in the fourth quarter relative to 1998. Our objectiveremains increasing shareholder value with an eye towards growth;both organic and external." For the quarter ended October 3, 1999, U.S. Can reported netsales of $178 million, a 0.1% increase over the third quarter of1998. The Company also reported nine-month sales of $550 million,a decrease of 0.7% from the $554 million reported in thecorresponding period of 1998. For the nine-month period increasedsales in European and domestic aerosol have been offset byreduced sales in Custom and Specialty. Gross margin of 14.2% in the third quarter of 1999 comparesfavorably to the 13.2% reported in the third quarter of 1998.Gross margin of 14.5% for the nine-month period compares to 12.7%reported last year. Third quarter 1999 margins reflect acontinuation of productivity improvements in our paint andgeneral line operations coupled with improved performance inEurope and good domestic aerosol demand. Operating margins of9.7% and 9.9% for the third quarter and nine-month period of 1999also compared favorably to the 8.9% and 8.3% reported during thecorresponding period of 1998 before restructuring anddiscontinued operations provisions. Interest expense of $6.8 million in the third quarter and$21.8 million in the nine-month period of 1999 represented areduction of 17.1% and 14% respectively from the correspondingperiods of 1998. The decrease continues to be the result of cashand working capital management coupled with capital programs thatare focused on cost reductions. During the third quarter anextraordinary loss net of tax of $0.5 million was recorded tocover the redemption premium and deferred financing costs on aportion of the Company's 10-1/8% subordinated notes. Dilutedearnings per share before the extraordinary item of $0.44 andafter extraordinary item of $0.40 recorded in the third quarterof 1999 compares to $(1.94) (includes $(1.61) restructuring and$(0.64) discontinued operations) reported in the third quarter oflast year. Diluted earnings per share year-to-date in 1999 are$1.38 ($1.28 after extraordinary item). Year-to-date earnings pershare in 1998 before the restructuring and discontinued operations provisions were$0.82. Final earnings per share in 1998 after the provisions were$(1.43). U.S. Can Corporation is a leading manufacturer of steelcontainers for personal care, household, automotive, paint andindustrial products in the United States and Europe, as well asplastic containers in the United States. Certain statements in this release constitute "forward-lookingstatements" within the meaning of the Federal securities laws.Such statements involve known and unknown risks and uncertaintieswhich may cause the Company's actual results, performance orachievements to be materially different than future results,performance or achievements expressed or implied in this release.By way of example and not limitation and in no particular order,known risks and uncertainties include the timing of, and netproceeds realized from, divestitures; the timing and cost ofplant closures; the level of cost reduction achieved throughrestructuring; the success of new technology; changes in marketconditions or product demand; loss of important customers;changes in raw material costs; and currency fluctuations. Inlight of these and other risks and uncertainties, the inclusionof a forward-looking statement in this release should not beregarded as a representation by the Company that any futureresults, performance or achievements will be attained. otsOriginal Text Service: U.S. Can Corporation Internet:http://www.newsaktuell.de Contact: John L. Workman ExecutiveVice President and Chief Financial Officer of U.S. CanCorporation, (USA) 630-571-2531 Web site: http://www.uscanco.com

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