Joint Venture for CCL in Middle East and India

CCL Industries will pay US$18.5 million in cash to acquire its 50 percent interest in the venture. Pacman-CCL generated sales of US$25.8 million in the year ending December 31, 2010, with net after tax earnings of approximately US$4.6 million. Closing of this transaction is expected to occur this summer after certain administrative procedures are completed. The venture is expected to have a small net cash position on closing. The Agreement also binds CCL and Albwardy to complete an investment in a new facility currently under construction in Jeddah, Saudi Arabia in 2011 with an estimated total cost of US$4.0 million to be funded by a combination of debt and additional equity in the new operation shared equally by the parties. CCL expects its own equity contribution to be funded by dividends from the venture in its first year. The partners have also agreed in principle to a prospective future greenfield investment by Pacman-CCL in India.