Avery Dennison Agrees to Sell Business Unit to 3M

Avery Dennison intends to use the proceeds from the transaction primarily to reduce debt, make additional pension contributions, and repurchase shares. This transaction will not negatively impact the Company’s common stock dividend.

Avery Dennison’s Office and Consumer Products business is one of the world’s leading suppliers of printable media and other products, with expected sales in 2011 of approximately $765 million; and expected adjusted operating income and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2011 of approximately $80 million and $95 million, respectively. These adjusted operating income and EBITDA estimates exclude allocations of general corporate overhead. To reduce costs, and in anticipation of an OCP transaction, Avery Dennison began implementing cost reduction actions as described in the Company’s third quarter 2011 Form 10-Q.