CCL Reports 10% Growth in Operating Income in Second Quarter 2008 and Declares Dividend



    TORONTO, Aug. 7 /CNW/ -

    August 7, 2008

    Dear Shareholder:

    Please find enclosed the Second Quarter 2008 Investor Package for CCL
Industries Inc.
    The economy and stock markets in Canada, the United States and Europe are
currently in turmoil. Although we are concerned by these cyclical events, CCL
continues to build its specialty packaging franchise and take advantage of
global market opportunities. We continue to believe that providing a
sustainable and growing dividend provides value to our shareholders. We also
believe that buying back our stock with available cash when the market reduces
our stock price to below normal valuation levels is a good long-term
investment for our shareholders. CCL cannot control the world economy or stock
market fluctuations, but our dividend policy and share repurchase plans
provide a level of stability for our stock price and long-term value for our
shareholders.
    Cash flow generated by our business remains firm and the Company is
solidly positioned financially. As a result, your Board of Directors is
pleased to declare the quarterly dividend at the level approved early in 2008
when it was increased by 17%. The quarterly dividend is $0.14 per Class B
non-voting share and $0.1275 per Class A voting share and is payable on
September 30, 2008 to shareholders of record as at September 16, 2008.
    Conference calls with our stakeholders are held following the release of
our quarterly results and when significant events require additional
communication. These calls are made to ensure that all stakeholders are kept
current with our business developments and to support our good corporate
governance practices. Presentation materials used during conference calls and
formal investor meetings are posted on our website along with audio recordings
of the meetings. Instructions for accessing these services are set out at the
end of this earnings release.
    We encourage all shareholders to access our website www.cclind.com on a
regular basis for investor and company news. If you would like to have future
Press Releases e-mailed to you at the time they are issued, please complete
the Information Request Form under the "Investors" tab ("Contact Us" icon) on
our website or write to us at CCL to the attention of Christene Duncan at the
address above.

    
    Yours truly,


    Donald G. Lang
    Executive Chairman of the Board

    Investor Update
    ---------------
    1. Second Quarter 2008 Results and Dividend Declaration Press Release
    2. Press Release - CCL Announces $25 Million Asian Label Expansion Plan -
       June 17, 2008


                                        Stock Symbol:  TSX - CCL.A and CCL.B

      CCL Reports 10% Growth in Operating Income in Second Quarter 2008
                            and Declares Dividend


    Results Summary
    ---------------

                                      For Periods Ended June 30th
    -------------------------------------------------------------------------
                                Three months               Six months
                                 Unaudited                  Unaudited
    -------------------------------------------------------------------------
    (in millions of
    Cdn dollars, except                      %                          %
    per share data)        2008     2007   Change     2008     2007   Change
                        -------- -------- -------- -------- -------- --------

    Sales               $ 312.8  $ 303.5      3.1  $ 607.9  $ 619.7     (1.9)
                        -------- -------           -------- --------
                        -------- -------           -------- --------
    Restructuring and
     other items
     - net gain (loss)  $  (0.5) $     -           $   1.8  $  (0.3)
                        -------- -------           -------- --------
                        -------- -------           -------- --------
    Net earnings from
     continuing
     operations         $  24.1  $  25.9     (6.9) $  51.6  $  52.2     (1.1)
    Net earnings
     from discontinued
     operations,
     net of tax               -      2.9                 -      6.6
                        -------- -------           -------- --------
    Net earnings        $  24.1  $  28.8    (16.3) $  51.6  $  58.8    (12.2)
                        -------- -------           -------- --------
                        -------- -------           -------- --------

    Per Class B share
    Basic Earnings
      Continuing
       operations       $  0.75  $  0.80     (6.2) $  1.60  $  1.62     (1.2)
      Discontinued
       operations             -     0.09                 -     0.20
                        -------- -------           -------- --------
      Net earnings      $  0.75  $  0.89    (15.7) $  1.60  $  1.82    (12.1)
                        -------- -------           -------- --------
                        -------- -------           -------- --------
    Diluted earnings
      Continuing
       operations       $  0.73  $  0.77     (5.2) $  1.55  $  1.56     (0.6)
      Discontinued
       operations             -     0.09                 -     0.20
                        -------- -------           -------- --------
      Net earnings      $  0.73  $  0.86    (15.1) $  1.55  $  1.76    (11.9)
                        -------- -------           -------- --------
                        -------- -------           -------- --------

    Restructuring and
     other items and
     tax adjustments
     - net gain (loss)  $ 0.01   $ 0.11            $ 0.06   $ 0.16
                        -------- -------           -------- --------
                        -------- -------           -------- --------

    Number of outstanding
     shares (in 000s)
      Weighted average
       for the period   32,219   32,233
      Actual at period
       end              31,851   32,263

    

    Toronto, August 7, 2008 - CCL Industries Inc., a world leader in the
development of labelling solutions and specialty packaging for the consumer
products and healthcare industries, announced today its financial results for
the second quarter ended June 30, 2008 and declaration of its quarterly
dividend.
    Sales for the second quarter of 2008 from continuing operations were
$312.8 million, up 3% from $303.5 million recorded in the second quarter of
2007, while sales for the first six months of 2008 of $607.9 million were 2%
lower than last year's $619.7 million. Sales increased for the quarter by 4%
due to organic growth and acquisitions, while foreign exchange accounted for a
reduction of 1%. The second quarter of 2007 also included the Easter holiday
period (it was in the first quarter of 2008) and this had a slight positive
impact on comparative sales. In addition, financial comparisons to the prior
year's second quarter results have been negatively affected by the significant
depreciation of the U.S. dollar (8%) and the U.K. pound (9%) but this was
offset in part by the appreciation of the euro (7%). Also, business
acquisitions in the Label Division have positively impacted the comparison to
prior periods. Year-to-date, sales decreased by 2% as a result of negative
foreign exchange of 5% partially offset by organic growth and acquisitions of
3%.
    Net earnings from continuing operations for the second quarter of 2008
were $24.1 million, down 7% from $25.9 million recorded in the second quarter
of 2007 due primarily to unfavourable currency translation and favourable tax
recoveries last year (described below). These negative items more than offset
substantially higher operating income and lower interest expense in the second
quarter of 2008. Operating income was up by $3.9 million or 10% from last
year's second quarter despite unfavourable currency effects. Operating income
from Label and Tube was higher than 2007 while Container was below prior year.
In the second quarter of 2008, net earnings were impacted by a net gain from
the sale of the Container Division's ABS product line of $3.1 million
($2.8 million after tax), partially offsetting the shutdown cost of the Label
operation in Rhyl, Wales of $3.6 million ($2.6 million after tax). These two
restructuring and other items generated a loss of $0.5 million (but a gain of
$0.2 million after tax). In the second quarter of 2007, a favourable tax
settlement was reached in a foreign subsidiary and corporate income tax rates
were lowered in Canada, the United Kingdom and Denmark, resulting in a
decrease in future tax liabilities and income tax expense of $3.6 million.
    For the first six months of 2008, net earnings from continuing operations
were $51.6 million, down 1% from $52.2 million in the comparable 2007 period.
Net earnings for the six months of 2008 were positively affected by
restructuring and other items for a net gain of $1.8 million with no net tax
effect. Net earnings for the six months of 2007 were affected by restructuring
and other costs and favourable tax adjustments for a net gain of $5.2 million
after tax.
    Basic earnings per Class B share from continuing operations were $0.75 in
the second quarter of 2008 compared to $0.80 earned in the same period last
year, a decrease of 6%. Restructuring and other items in the second quarter of
2008 increased basic earnings per Class B share by $0.01. Favourable tax
adjustments had a positive effect on earnings per share in the second quarter
of 2007 of $0.11. Basic earnings per share from discontinued operations in the
second quarter of 2007 were $0.09. The negative impact of currency translation
and transactions on basic earnings per Class B share from continuing
operations was $0.04 in the second quarter of 2008 versus the second quarter
of 2007.
    For the first six months of 2008, earnings per Class B share were $1.60
compared to $1.62 in the prior year period, a 1% decrease. Restructuring and
other items increased earnings per Class B share by $0.06 for the first half
of 2008 versus a $0.16 increase in the same period last year. The negative
impact of currency translation and transactions on basic earnings per Class B
share from continuing operations for the first six months of 2008 was $0.15
versus the same period last year.
    Commenting on the quarter, Geoffrey T. Martin, President and Chief
Executive Officer, said, "We are pleased with our earnings performance in
CCL's second quarter of 2008 in light of the economic turbulence in the United
States, increasing uncertainty in parts of Europe and the impact of record
high commodity and energy costs. We have also been affected by unfavourable
currency exchange and the loss of earnings from the sale late last year of the
ColepCCL joint venture. However, our global businesses have held up very well
under the circumstances and have delivered operating income that was 10%
higher than last year's record second quarter despite unfavourable currency."
    Mr. Martin stated, "The Label Division, which now represents over 80% of
our sales, continued to show good growth overall in both sales and operating
income, especially outside of North America. Although we have experienced
market weakness in our home and personal care business in both North America
and parts of Europe, this has been more than offset by the strength of our
global healthcare business, new products such as our patented wash-off labels
for glass beverage bottles and geographic expansions into emerging markets
with higher growth profiles. We are particularly pleased with the CD-Design
business in Germany, which was acquired in January. Results from the first
quarter of reporting from the Clear Image Australian wine label acquisition
were also solid."
    Mr. Martin also noted, "Sales in the Container Division were down in the
quarter due to slow personal care sales, the divestiture of the ABS
"bag-in-can" product line and unfavourable exchange rates; the combined
effects of which impacted almost exclusively our Penetanguishene, Ontario
operation. Although performance at our U.S. and Mexican operations were
modestly improved over the second quarter of 2007, Penetanguishene's
difficulties resulted in reduced operating income for the Container Division
as a whole compared to last year. Cost reduction and other actions to address
the situation will be implemented in the third quarter. The business continues
to pass along price increases in line with higher aluminum costs and expects
to enjoy higher beverage sales and new capacity in Mexico in the coming
quarters to help mitigate the soft personal care markets in the U.S. The Tube
Division posted a modest sales increase in local terms and produced a small
profit. With new orders in hand, we are anticipating continued improvements in
profitability sequentially."
    Mr. Martin added, "We continue to have confidence to invest in growth
projects such as our new Container facility in Mexico and CCL Label's further
geographic expansion into rapidly growing emerging markets. In the developed
world, we also see investment opportunities to drive product innovation for
our global customers and are particularly encouraged by such developments in
the healthcare and beverage markets. We have the strength of our balance sheet
to grow the Company from existing cash flows, and have the financial capacity
to pursue accretive acquisitions and to take advantage of further
opportunities to buy back our stock."
    Mr. Martin concluded, "We remain cautiously optimistic about the balance
of 2008 as we believe our diversified product lines and our global spread will
help offset the impact of the unstable U.S. economy. Cash flow and earnings
growth continue to support our dividend policy. As a result, your Board of
Directors has declared a dividend at the same level as the higher dividend
declared earlier this year. The quarterly dividend is $0.14 on Class B
non-voting shares and $0.1275 on Class A voting shares to shareholders of
record at the close of business on September 16, 2008, payable on September
30, 2008. CCL continues its record of paying quarterly dividends without
reduction or omission for over 25 years."

    With headquarters in Toronto, Canada, CCL Industries now employs
approximately 5,500 people and operates 56 production facilities in North
America, Europe, Latin America and Asia Pacific. CCL Label is the world's
largest converter of pressure sensitive and film materials and sells to
leading global customers in the consumer packaging, healthcare, and consumer
durable segments. CCL Container and CCL Tube produce aluminum cans, bottles
and plastic tubes for the consumer products industry in North America.

    Statements contained in this Press Release, other than statements of
historical facts, are forward-looking statements subject to a number of
uncertainties that could cause actual events or results to differ materially
from some statements made.

    
    For more information, contact:

    Steve Lancaster   Executive Vice President and Acting CFO    416-756-8517

    Note:  CCL will hold a conference call at 4:00 p.m. EDT on
           Thursday, August 7, 2008 to discuss these results.
           To access this call, please dial Toll-Free North America -
           1-800-594-3790 or International - 416-644-3421.

           Conference Replay will be available from Thursday, August 7, 2008
           at 6:00 p.m. EDT until Saturday, September 6, 2008 at
           11:59 p.m. EDT

           Dial:  Toll-Free North America - 1-877-289-8525
                  International - 416-640-1917
                  - Access Code: 21278204 followed by the number sign

    For more details on CCL, visit our website - www.cclind.com



    CCL INDUSTRIES INC.
    2008 Second Quarter
    Consolidated  Balance Sheets

                                                June    December        June
    Unaudited                                   30th        31st        30th
    -------------------------------------------------------------------------
    (in millions of Cdn dollars)                2008        2007        2007
                                         ------------- ----------- ----------
    Assets
      Current assets
        Cash and cash equivalents            $ 104.4     $  96.6     $  86.9
        Accounts receivable - trade            174.3       127.1       200.6
        Other receivables and prepaid
         expenses                               26.2        97.7        27.1
        Inventories                             83.4        69.6        96.9
                                         ------------------------------------
                                               388.3       391.0       411.5
      Property, plant and equipment            735.0       630.8       655.8
      Other assets (note 4)                     42.4        33.4        26.0
      Future income tax assets                  34.5        32.1        33.0
      Intangible assets                         42.5        26.1        36.4
      Goodwill                                 390.1       374.8       425.8
    -------------------------------------------------------------------------
      Total assets                         $ 1,632.8   $ 1,488.2   $ 1,588.5
    -------------------------------------------------------------------------

    Liabilities
      Current liabilities
        Bank advances                      $       -   $       -   $     7.5
        Accounts payable and
         accrued liabilities                   234.8       221.2       254.5
        Income and other taxes payable           7.6         2.5         8.9
        Current portion of long-term debt       21.6        21.2        16.3
                                         ------------------------------------
                                               264.0       244.9       287.2
    Long-term debt                             439.2       382.2       479.4
    Other long-term items                       55.2        48.8        50.6
    Future income taxes                         99.3        94.4       103.1
    -------------------------------------------------------------------------
    Total liabilities                          857.7       770.3       920.3
    -------------------------------------------------------------------------

    Shareholders' equity
      Share capital (note 2)                   186.4       190.5       187.5
      Contributed surplus                        6.0         6.7         6.3
      Retained earnings                        634.4       606.1       524.7
      Accumulated other
       comprehensive loss (note 6)             (51.7)      (85.4)      (50.3)
    -------------------------------------------------------------------------
    Total shareholders' equity                 775.1       717.9       668.2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total liabilities and shareholders'
     equity                                $ 1,632.8   $ 1,488.2   $ 1,588.5
    -------------------------------------------------------------------------

    See notes to interim consolidated financial statements.

    Certain figures have been reclassified for comparative purposes.



    CCL INDUSTRIES INC.
    2008 Second Quarter
    Consolidated Statements of Earnings


                            Three months ended          Six months ended
    Unaudited                    June 30th                  June 30th
    -------------------------------------------------------------------------
    (in millions of
    Cdn dollars, except                      %                          %
    per share data)        2008     2007   Change     2008     2007   Change
                        -------- -------- -------- -------- -------- --------

    Sales               $ 312.8  $ 303.5      3.1  $ 607.9  $ 619.7     (1.9)
                        -----------------------------------------------------
    Costs and expenses
      Cost of goods
       sold               236.2    232.1             459.2    469.4
      Selling, general
       and administrative  36.2     33.3              66.4     68.7
      Depreciation and
       amortization         1.8      1.3               3.4      3.1
      Interest expense,
       net                  5.9      6.2              10.1     12.6
                        -----------------------------------------------------
                           32.7     30.6      6.9     68.8     65.9      4.4
    Restructuring and
     other items - net
     gain (loss) (note 7)  (0.5)       -               1.8     (0.3)

                        -----------------------------------------------------
    Earnings before
     income taxes          32.2     30.6      5.2     70.6     65.6      7.6
    Income taxes            8.1      4.7              19.0     13.4

                        -----------------------------------------------------
    Net earnings from
     continuing
     operations            24.1     25.9     (6.9)    51.6     52.2     (1.1)

    Net earnings from
     discontinued
     operations, net of
     tax (note 5)             -      2.9                 -      6.6

                        -----------------------------------------------------

    Net earnings        $  24.1  $  28.8    (16.3) $  51.6   $ 58.8    (12.2)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings per
     Class B share
    Continuing
     operations         $  0.75  $  0.80           $  1.60  $  1.62
    Discontinued
     operations               -     0.09                 -     0.20
                        -----------------------------------------------------
    Net earnings        $  0.75  $  0.89           $  1.60  $  1.82
    -------------------------------------------------------------------------

    Diluted earnings per
     Class B share
    Continuing
     operations         $  0.73  $  0.77           $  1.55  $  1.56
    Discontinued
     operations               -     0.09                 -     0.20
                        -----------------------------------------------------
    Net earnings        $  0.73  $  0.86           $  1.55  $  1.76
    -------------------------------------------------------------------------

    See notes to interim consolidated financial statements.

    Certain figures have been reclassified for comparative purposes.


    CCL INDUSTRIES INC.
    2008 Second Quarter
    Consolidated Statements of Comprehensive Income

                                        Three months ended  Six months ended
    Unaudited                                  June 30th        June 30th
    -------------------------------------------------------------------------

    (in millions of Cdn dollars)             2008     2007     2008     2007
                                          -------- -------- -------- --------


    Net earnings                          $  24.1  $  28.8  $  51.6  $  58.8
                                          -----------------------------------

    Other comprehensive income (loss),
     net of tax:

      Unrealized gains (losses) on
       translation of financial statements
       of self-sustaining foreign operations    -    (55.3)    49.6    (59.3)

      Gains (losses) on hedges of net
       investment in self-sustaining
       foreign operations, net of tax
       recovery (expense) of ($0.5)
       million and $2.9 million for the
       three-month and six-month periods
       ending June 30, 2008  (2007 -
       ($4.3) million; ($4.6) million)        3.2     24.4    (16.2)    25.3

                                          -----------------------------------
    Unrealized foreign currency
     translation, net of hedging
     activities                               3.2    (30.9)    33.4    (34.0)
                                          -----------------------------------


      Gains (losses) on derivatives
       designated as cash flow hedges,
       net of tax recovery (expense)
       of $0.2 million and ($1.0)
       million for the three-month
       and six-month periods ending
       June 30, 2008  (2007 - $0.8
       million; $0.8 million)                (1.2)    (3.9)     2.5     (4.0)

      Reclassification of gains
       (losses) on derivatives
       designated as cash
       flow hedges to earnings, net of
       tax recovery (expense) of
       $0.2 million and $0.6 million
       for the three-month and six-month
       periods ending June 30, 2008 (2007
       - ($0.5) million; ($0.3) million)     (0.2)     3.6     (2.2)     3.4

                                          -----------------------------------
    Change in gains (losses) on
     derivatives designated as cash
     flow hedges                             (1.4)    (0.3)     0.3     (0.6)
                                          -----------------------------------

    Other comprehensive income (loss)         1.8    (31.2)    33.7    (34.6)
                                          -----------------------------------

    Comprehensive income (loss)           $  25.9  $  (2.4) $  85.3  $  24.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See notes to interim consolidated financial statements.

    Certain figures have been reclassified for comparative purposes.



    CCL INDUSTRIES INC.
    2008 Second Quarter
    Consolidated Statements of Shareholders' Equity

                                                            Six months ended
    Unaudited                                                   June 30th
    -------------------------------------------------------------------------
    (in millions of Cdn dollars)                               2008     2007
                                                            -------- --------


    Share capital (note 2)

    Class A shares, beginning of period                     $   4.5  $   4.5
                                                            -----------------
    Class A shares, end of period                               4.5      4.5

    Class B shares, beginning of period                       197.4    193.0
    Shares issued                                               0.9        -
    Stock options exercised, Class B                            0.1      1.7
    Normal course issuer bid                                   (3.9)       -
                                                            -----------------
    Class B shares, end of period                             194.5    194.7

    Executive share purchase plan loans,
     beginning of period                                       (1.3)    (1.6)
                                                            -----------------
    Executive share purchase plan loans, end of period         (1.3)    (1.6)

    Shares held in trust, beginning of period                 (10.1)    (5.7)
    Shares released from trust                                  3.2        -
    Shares purchased and held in trust                         (4.4)    (4.4)
                                                            -----------------
    Shares held in trust, end of period                       (11.3)   (10.1)

    -------------------------------------------------------------------------
    Share capital, end of period                              186.4    187.5
    -------------------------------------------------------------------------

    Contributed surplus
    Contributed surplus, beginning of period                    6.7      4.2
    Stock option expense                                        0.6      0.5
    Stock based compensation plan                              (1.3)     1.6
    -------------------------------------------------------------------------
    Contributed surplus, end of period                          6.0      6.3
    -------------------------------------------------------------------------

    Retained earnings, beginning of period                    606.1    476.7

    Transition adjustment on adoption of new accounting
     standards                                                    -     (3.1)
    Net earnings                                               51.6     58.8
    Normal course issuer bid                                  (14.2)       -

    Dividends
    Class A                                                     0.6      0.5
    Class B                                                     8.5      7.2
                                                            -----------------
    Total dividends, end of period                              9.1      7.7

    -------------------------------------------------------------------------
    Retained earnings, end of period                          634.4    524.7
    -------------------------------------------------------------------------

    Accumulated other comprehensive loss (note 6)
    Accumulated other comprehensive loss, beginning
     of period                                                (85.4)   (18.5)
    Transition adjustment on adoption of new
     accounting standards                                         -      2.8
    Other comprehensive income (loss)                          33.7    (34.6)
    -------------------------------------------------------------------------
    Accumulated other comprehensive loss, end of period       (51.7)   (50.3)
                                                            -----------------

                                                            -----------------
    Total shareholders' equity, end of period               $ 775.1  $ 668.2
                                                            -----------------
                                                            -----------------




    CCL INDUSTRIES INC.
    2008 Second Quarter
    Consolidated Statements of Cash Flows

                                        Three months ended  Six months ended
    Unaudited                                  June 30th        June 30th
    -------------------------------------------------------------------------
    (in millions of Cdn dollars)             2008     2007     2008     2007
                                          -------- -------- -------- --------
    Cash provided by (used for)

    Operating activities
      Net earnings                        $  24.1  $  28.8  $  51.6  $  58.8
      Earnings from discontinued
       operations, net of tax                   -     (2.9)       -     (6.6)
      Items not requiring cash:
        Depreciation and amortization        20.7     19.5     39.8     38.4
        Executive compensation                1.1      1.0      2.0      2.1
        Future income taxes                   0.9     (0.4)     4.0     (1.1)
        Restructuring and other items,
         net of tax (note 7)                 (0.2)       -     (1.8)    (0.2)
        Gain on sale of property, plant
         and equipment                       (0.6)       -     (0.9)       -
        ---------------------------------------------------------------------
                                             46.0     46.0     94.7     91.4
      Net change in non-cash working
       capital                               (8.7)     4.5     38.4    (41.3)
      -----------------------------------------------------------------------
      Cash provided by continuing
       operations                            37.3     50.5    133.1     50.1
      Cash provided by discontinued
       operations                               -      4.6        -     10.2
      -----------------------------------------------------------------------
      Cash provided by operating
       activities                            37.3     55.1    133.1     60.3
      -----------------------------------------------------------------------

    Financing activites
      Proceeds on issuance of
       long-term debt                        (1.7)     0.4     40.4    104.1
      Retirement of long-term debt           (6.5)    (1.1)    (7.6)    (3.3)
      Decrease in bank advances                 -     (3.6)       -     (9.9)
      Issue of shares                           -      0.9        -      1.6
      Settlement of exercised stock
       options                                0.1        -      0.1        -
      Repurchase of shares (note 2)          (6.3)       -    (18.1)       -
      Purchase of shares held in
       trust (note 2)                           -        -     (4.4)    (4.4)
      Dividends                              (4.5)    (3.9)    (9.1)    (7.7)
      -----------------------------------------------------------------------
      Cash provided by (used for)
       financing activities                 (18.9)    (7.3)     1.3     80.4
      -----------------------------------------------------------------------

    Investing activities
      Additions to property, plant
       and equipment                        (50.9)   (39.0)  (103.1)   (70.2)
      Proceeds on disposal of property,
       plant and equipment                    2.5      1.7      3.3      4.6
      Proceeds on product line
       dispositions (note 7)                  8.4        -      8.4        -
      Business acquisitions (note 3)        (26.9)       -    (35.2)  (105.6)
      Long-term investment (note 4)          (6.3)       -     (6.3)       -
      Other                                     -     (4.3)       -     (1.1)
      -----------------------------------------------------------------------
      Cash used for investing activities    (73.2)   (41.6)  (132.9)  (172.3)
      -----------------------------------------------------------------------
    Effect of exchange rate changes
     on cash                                  3.0     (5.9)     6.3     (6.5)
    -------------------------------------------------------------------------

    Increase (decrease) in cash             (51.8)     0.3      7.8    (38.1)
    Cash and cash equivalents at
     beginning of period                    156.2     86.6     96.6    125.0
    -------------------------------------------------------------------------

    Cash and cash equivalents at
     end of period                        $ 104.4  $  86.9  $ 104.4  $  86.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cand cash equivalents are defined as cash and short-term investments.
    See notes to interim consolidated financial statements.
    Certain figures have been reclassified for comparative purposes.
    from some statements made.



                             CCL INDUSTRIES INC.

         NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

                     Periods ended June 30, 2008 and 2007
       (Tabular amounts in millions of Cdn dollars except share data)
                                 (Unaudited)

    1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    a)  Basis of presentation

        The disclosures contained in these unaudited interim consolidated
        financial statements do not include all of the requirements of
        generally accepted accounting principles for annual financial
        statements. The unaudited interim consolidated financial statements
        should be read in conjunction with the annual consolidated financial
        statements for the year ended December 31, 2007.

    b)  Changes in accounting policies

        The unaudited interim consolidated financial statements are based
        upon accounting principles consistent with those used and described
        in the annual consolidated statements, except that: effective
        January 1, 2008, the Company adopted the new Canadian Institute of
        Chartered Accountants (CICA) Handbook Section 1535, Capital
        Disclosures; Section 3031, Inventories; Section 3862, Financial
        Instruments - Disclosures and Handbook Section 3863, Financial
        Instruments - Presentation.

        Section 1535 establishes standards for disclosing information about
        an entity's capital and how it is managed.

        Section 3031 addresses the measurement and disclosure of inventories.
        This standard provides changes to the measurement and more extensive
        guidance on the determination of cost, including allocation of
        overhead; narrows the permitted cost formulas; requires impairment
        testing and expands the disclosure requirements to increase
        transparency. There have been no material write-downs or write-ups in
        inventory during the six months ended June 30, 2008.

        The difference in the measurement of opening inventory may be applied
        to the opening inventory for the period, with an adjustment to
        opening retained earnings with no prior periods restated, or
        retrospectively with a restatement to prior periods in accordance
        with Section 1506, Accounting Changes. There was no difference to be
        accounted for by the Company.

        Inventories are valued at the lower of cost and net realizable value
        on the first-in, first-out basis. The cost of work in process and
        finished goods includes materials, direct labor applied to the
        product and the applicable share of overhead. Net realizable value is
        based on selling price less estimated selling costs. Allowances are
        made for slow-moving inventory.

        Section 3862 and Section 3863 revise and enhance the disclosure
        requirements of Handbook Section 3861, Financial Instruments -
        Disclosure and Presentation. These Sections require disclosure of
        information with regards to the significance of financial instruments
        for the Company's financial position and performance, and the nature
        and extent of risks arising from financial instruments to which the
        Company is exposed during the period and at the balance sheet date
        and how the Company manages those risks.

    c)  Recently issued accounting standards

        In November 2007, the CICA issued Handbook Section 3064, Goodwill and
        Intangible Assets, that replaced Section 3062, Goodwill and Other
        Intangible Assets, and amended Section 1000, Financial Statement
        Concepts. The new standard is effective for interim and annual
        financial statements for fiscal years beginning on or after October
        1, 2008. The new section establishes standards for the recognition,
        measurement, presentation and disclosure of goodwill and other
        intangible assets subsequent to its initial recognition. Standards
        concerning goodwill are unchanged from the standards included in the
        previous Section 3062. Guidance is provided on the definition of an
        intangible asset and the recognition of internally generated
        intangible assets. The Company will comply with the requirements of
        the new standard when the standard becomes effective.

        The Canadian Accounting Standards Board confirmed in February 2008
        that all publicly accountable enterprises will be required to report
        under International Financial Reporting Standards ("IFRS") for fiscal
        periods beginning on or after January 1, 2011.


    2.  SHARE CAPITAL

        Issued and outstanding

                                           June 30, December 31,     June 30,
                                           -------- ------------     --------
                                              2008         2007         2007
                                              -----        -----        -----
        Issued share capital            $    199.1   $    201.9   $    199.2
        Less: Executive share purchase
               plan loans                     (1.3)        (1.3)        (1.6)
              Shares held in trust           (11.4)       (10.1)       (10.1)
                                        -------------------------------------
        Total                           $    186.4   $    190.5   $    187.5
                                        -------------------------------------
                                        -------------------------------------

        During 2008, 618,000 Class B shares were repurchased for
        $18.1 million. The excess of the purchase price over the paid-up
        capital of $3.9 million was charged to retained earnings.

        During 2008, the Company issued 29,753 restricted shares as part of
        the consideration for the purchase Clear Image Labels Pty. Ltd. These
        restricted shares are price protected and cannot be sold or
        transferred until December 31, 2009 (note 3).

        During 2008, the Company granted awards totaling 145,000 Class B
        shares of the Company. These shares are restricted in nature and will
        vest at the end of 2010 dependent on the Company's performance. The
        Company purchased these 145,000 shares in the open market and has
        placed them in a trust until they vest. The fair value of this stock
        award is being amortized over the vesting period and recognized as
        compensation expense.

        During 2005, the Company granted an award totaling 200,000 Class B
        shares of the Company. These shares are restricted in nature.
        120,000 became fully vested in 2008 and were released from the trust
        that held the shares. The fair value of these shares had been
        amortized over the vesting period and recognized as compensation
        expense. The balance of the award will continue to be amortized over
        the remaining vesting period, ending December 31, 2009 and recognized
        as executive compensation expense.


        Actual number of shares:

                                           June 30, December 31,     June 30,
                                           -------- ------------     --------
                                              2008         2007         2007
                                              -----        -----        -----
          Class A                        2,378,343    2,378,496    2,378,496
          Class B                       29,917,953   30,501,047   30,329,847
                                       --------------------------------------
                                        32,296,296   32,879,543   32,708,343
          Less: Executive share
                 purchase plan shares
                 - Class B                (100,000)    (100,000)    (125,000)
                Shares held in trust
                 - Class B                (345,000)    (320,000)    (320,000)
                                       --------------------------------------
          Total                         31,851,296   32,459,543   32,263,343
                                       --------------------------------------
                                       --------------------------------------

        Year-to-date weighted average
         number of shares               32,219,157   32,284,210   32,232,585
                                       --------------------------------------
                                       --------------------------------------
        Year-to-date weighted average
         diluted number of shares       33,195,909   33,492,937   33,501,168
                                       --------------------------------------
                                       --------------------------------------

    3.  ACQUISITIONS

        On April 1, 2008, the Company completed the purchase of Clear Image
        Labels Pty. Ltd. ("Clear Image") based in Australia. Clear Image
        supplies pressure sensitive labels to the Australian wine industry
        with plants in Sydney, New South Wales and Barossa Valley, South
        Australia. Clear Image also exports labels to wine producers in the
        United States. The Company paid $33.4 million in a combination of
        cash, restricted stock and assumed debt to acquire the business.
        During 2008, the Company issued 29,753 restricted shares as part of
        the consideration for the purchase Clear Image. These restricted
        shares are price protected and cannot be sold or transferred until
        December 31, 2009. The Company is reviewing the valuation of the net
        assets acquired, including intangible assets, therefore certain items
        disclosed below may change when the review is completed.

        Details of the transaction are as follows:

          Current assets                                          $      4.9
          Current liabilities                                           (4.2)
          Non-current assets at assigned values                         10.6
          Future taxes                                                  (0.7)
          Goodwill and intangibles                                      22.8
                                                                  -----------
          Net assets purchased                                    $     33.4
                                                                  -----------
                                                                  -----------


          Cash                                                    $     26.9
          Assumed debt                                                   5.6
          Restricted shares                                              0.9
                                                                  -----------
          Total consideration                                     $     33.4
                                                                  -----------
                                                                  -----------


        On January 31, 2008, the Company purchased CD-Design GmbH
        ("CD-Design"), based in Solingen, Germany. CD-Design converts
        pressure sensitive films and aluminum for leading original equipment
        manufacturers in Germany.

        Under the terms of the purchase agreement, the Company agreed to pay
        additional purchase consideration not to exceed approximately $4.5MM
        if CD-Design achieves predetermined levels of earnings for the year
        ended December 31, 2008. The additional consideration will be
        recognized as additional consideration if it is determined that the
        predetermined levels of earnings are achieved. The Company is
        reviewing the valuation of the net assets acquired, including
        intangible assets, therefore certain items disclosed below may change
        when the review is completed.

        Details of the transaction are as follows:
          Current assets                                          $      7.1
          Current liabilities                                           (3.2)
          Non-current assets at assigned values                          1.4
          Future taxes                                                  (0.5)
          Goodwill and intangible assets                                 4.9
                                                                  -----------
          Net assets purchased                                    $      9.7
                                                                  -----------
                                                                  -----------


          Cash, less cash acquired of $0.4 million                $      8.3
          Assumed debt                                                   1.4
                                                                  -----------
          Total consideration                                     $      9.7
                                                                  -----------
                                                                  -----------

        On January 26, 2007, the Company completed its purchase of the sleeve
        label business of Illinois Tool Works Inc. ("ITW"). ITW's sleeve
        label business, through its two locations in the United Kingdom and
        one location in each of Austria, Brazil and the United States, is a
        leading supplier of shrink sleeve and stretch sleeve labels for
        markets in Europe and the Americas. The purchase price was
        $105.8 million, net of cash acquired. The Company established a
        $95.0 million line of credit, of which $75.0 million was drawn to
        facilitate the purchase.

        Details of the transaction are as follows:

          Current assets                                          $     24.3
          Current liabilities                                           (8.4)
          Non-current assets at assigned values                         35.2
          Future taxes                                                  (1.5)
          Intangible assets                                             19.0
          Goodwill                                                      37.2
                                                                  -----------
          Net assets purchased                                    $    105.8
                                                                  -----------
                                                                  -----------

                                                                  -----------
          Cash, less cash acquired of $2.8 million                $    105.8
                                                                  -----------
                                                                  -----------

    4.  OTHER ASSETS

        In December 2007, the Company created CCL-Kontur, a pressure
        sensitive label business that will service the territories of Russia
        and the Commonwealth of Independent States. CCL paid cash of
        $8.8 million for its 50% share in December 2007 and a further
        $6.3 million paid in the second quarter of 2008 as the assets of the
        business have been legally transferred to CCL-Kontour by the Russian
        partner. The Russian partner has operating control of the business
        and, consequently, the investment is being carried at its equity
        value. The allocation of the investment to specific assets and the
        purchase equation will be finalized during 2008.

    5.  DISCONTINUED OPERATIONS

        In November 2007, the Company sold its interest in the ColepCCL joint
        venture to the majority joint venture partner for $72.8 million
        (EUR 50.0 million) in cash and a short-term note for a further
        $74.4 million (EUR 50.0 million) that was paid on February 29, 2008.
        The sale resulted in a gain of $43.5 million. The disposition is
        reported as discontinued operations and the results are as follows:


                                                    Three months  Six months
                                                    ------------  ----------
                                                       ended        ended
                                                       -----        -----
                                                      June 30,     June 30,
                                                      --------     --------
                                                        2007         2007
                                                        ----         ----
        Sales from discontinued
         operations                                  $     53.7   $    110.6
        Cost of goods sold                                 43.9         90.1
        Selling general and
         administrative                                     5.1         10.2
        Depreciation and amortization                       0.4          0.7
        Interest, net                                       0.3          0.5
                                                    -------------------------
        Earnings before income taxes                        4.0          9.1
        Income taxes                                        1.2          2.6
                                                    -------------------------
        Net earnings from discontinued
         operations                                  $      2.8   $      6.5
                                                    -------------------------
                                                    -------------------------

                                                                June 30, 2007
                                                                -------------

        Current assets                                            $     77.6
        Long-lived assets                                              100.5
        Current liabilities                                             48.2
        Long-term liabilities                                           27.2

    6.  ACCUMULATED OTHER COMPREHENSIVE LOSS

                                           June 30, December 31,     June 30,
                                           -------- ------------     --------
                                              2008         2007         2007
                                              -----        -----        -----
        Unrealized foreign currency
         translation losses, net of tax
         expense of $11.1 million (2007
         - net of tax expense
         $13.9 million; net of tax
         expense of $12.0 million)      $    (53.6)  $    (87.3)  $    (52.5)
        Impact of new net investment
         hedge accounting standards on
         January 1, 2007, net of tax of
         $0.0 million (2007 - net of
         tax expense $0.1 million; net
         of tax expense $0.1 million)            -           0.4         0.4
        Impact of new cash flow hedge
         accounting standards on
         January 1, 2007, net of tax of
         $0.0 million (2007 - net of
         tax expense $1.3 million; net
         of tax expense $1.3 million)            -          2.4          2.4
        Gains (losses) in derivatives
         designated as cash flow hedges,
         net of tax expense of
         $0.6 million (2007 - net of
         tax recovery of $1.1 million;
         net of tax recovery of
         $0.5 million)                         1.9         (0.9)        (0.6)
                                       --------------------------------------
                                        $    (51.7)  $    (85.4)  $    (50.3)
                                       --------------------------------------
                                       --------------------------------------

    7.  RESTRUCTURING AND OTHER ITEMS

                                                      Three          Six
                                                  months ended  months ended
                                                    June 30th     June 30th
        ---------------------------------------------------------------------
                                        Segment    2008   2007   2008   2007
                                        -------    ----   ----   ----   ----
        Sale of ABS product line       Container $  3.1 $    - $  3.1 $    -
        Restructuring of Rhyl, Wales
         label business                  Label     (3.6)     -   (3.6)     -
        Gain on note receivable        Corporate      -      -    2.3      -
        Container segment
         restructuring                 Container      -      -      -   (1.0)
        Sale of non-operational land   Corporate      -      -      -    0.7
                                                 ----------------------------
        Net gain (loss)                          $ (0.5)     - $  1.8   (0.3)
        ---------------------------------------------------------------------

        Tax recovery on restructuring
         and other items                         $  0.7 $    - $    - $  0.5
        ---------------------------------------------------------------------

        On April 4, 2008, the Company signed a binding agreement to divest
        the assets of its ABS "Bag-on-Valve" product line to AptarGroup, Inc
        for $9.4 million in cash. The product line was sold by CCL Container,
        in conjunction with aluminum aerosol containers for applications
        requiring separation between the propellant and the contents.
        CCL Container retains the aluminum aerosol can business and will
        continue to sell to its existing customers and AptarGroup will
        separately market these specialized dispensing systems to the
        customers. The Company recognized a gain on the sale of $3.1 million
        ($2.8 million after tax).

        In 2008, an unrealized exchange gain on a euro-denominated note
        receivable on the sale of ColepCCL of $2.3 million was recognized
        ($1.6 million after tax).

        In 2008, the Company, as part of its restructuring of the Rhyl plant
        located in Wales recorded provisions for additional costs of
        $3.6 million ($2.6 million after tax).

        The Company, as part of its restructuring of the Container segment
        recorded provisions for additional costs of $1.0 million
        ($0.7 million after tax) in 2007.

        In March 2007, the Company sold its non-operational land in Toronto,
        Canada for $2.0 million cash and realized a gain of $0.7 million
        ($0.9 million after tax).

    8.  EMPLOYEE FUTURE BENEFITS

        The expense for the defined benefit plans in the second quarter is
        $0.3 million (2007 - $0.4 million) and $0.7 million year to date
        (2007 - $0.8 million).


    9.  SEGMENTED INFORMATION

        Industry segments

               Three months ended June 30th     Six months ended June 30th
    -------------------------------------------------------------------------
                                 Operating                       Operating
                   Sales           income          Sales           income
              ---------------------------------------------------------------
                2008    2007    2008    2007    2008    2007    2008    2007
              ------- ------- ------- ------- ------- ------- ------- -------
    Label     $258.4  $238.4  $ 39.7  $ 32.7  $496.3  $483.5  $ 76.9  $ 71.6

    Container   39.2    49.3     2.8     6.0    80.7   102.2     8.2    12.0

    Tube        15.2    15.8     0.3     0.2    30.9    34.0     0.4     1.6
              ---------------------------------------------------------------

    Total
     opera-
     tions    $312.8  $303.5    42.8    38.9  $607.9  $619.7    85.5    85.2
              ---------------                 ---------------

    Corporate
     expense                    (4.2)   (2.1)                   (6.6)   (6.7)
                              ---------------                 ---------------

                                38.6    36.8                    78.9    78.5
    Interest
     expense,
     net                         5.9     6.2                    10.1    12.6
                              ---------------                 ---------------

                                32.7    30.6                    68.8    65.9

    Restructuring and other
     items - net gain (loss)
     (note 7)                   (0.5)      -                     1.8    (0.3)
                              ---------------                 ---------------

    Earnings before income
     taxes                      32.2    30.6                    70.6    65.6

    Income taxes                 8.1     4.7                    19.0    13.4
                              ---------------                 ---------------

    Net earnings from
     continuing operations      24.1    25.9                    51.6    52.2
    Net earnings from
     discontinued operations       -     2.9                       -     6.6
                              ---------------                 ---------------
    Net earnings              $ 24.1  $ 28.8                  $ 51.6  $ 58.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                        Identifiable Assets                 Goodwill
                        -------------------                 --------

                      June 30th  December 31st      June 30th  December 31st
                      ---------  -------------      ---------  -------------
                           2008           2007           2008           2007
                           ----           ----           ----           ----

    Label             $ 1,179.0      $   994.4      $   351.1      $   336.6
    Container             178.7          166.8           12.7           12.7
    Tube                   85.9           82.4           26.3           25.5
    ColepCCL                  -                             -              -
    Corporate             189.2          244.6              -              -
                      -------------------------------------------------------
    Total             $ 1,632.8      $ 1,488.2      $   390.1      $   374.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                             Depreciation &
                              Amortization              Capital Expenditures
                             --------------             --------------------

                            Six months ended              Six months ended
                                June 30th                     June 30th
                           -------------------           -------------------
                           2008           2007           2008           2007
                           ----           ----           ----           ----
                         Continuing operations
                         ---------------------
    Label             $    31.2      $    28.9      $    88.5      $    59.1
    Container               4.9            5.7           11.4            2.5
    Tube                    3.4            3.6            2.8            1.3
    ColepCCL                  -              -              -            7.3
    Corporate               0.3            0.2            0.4              -
                     --------------------------------------------------------
    Total             $    39.8      $    38.4      $   103.1      $    70.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


        10. CAPITAL MANAGEMENT POLICY

        The Company's objective is to maintain a strong capital base
        throughout the economic cycle so as to maintain investor, creditor
        and market confidence and to sustain the future development of the
        business. This capital structure supports the Company's objective to
        provide an attractive financial return to its shareholders equal to
        its leading specialty packaging peers (between 12% and 14% recently).

        The Company defines capital as total shareholders' equity and
        measures the return on capital (or return on equity) by annual net
        income before restructuring and other items and favourable tax
        adjustments by the average of the beginning and end of year
        shareholders' equity. In both 2006 and 2007, the return on capital
        was 13% and was well within the range of its leading specialty
        packaging peers.

        Management and the Board maintain a balance between the expected
        higher return on capital that might be possible with a higher level
        of financial debt and the advantages and security afforded by a lower
        level of financial leverage. The Company believes that an optimum
        level of net debt (defined as current debt, including bank advances,
        plus long term debt, less cash and cash equivalents) to total book
        capitalization (defined as net debt plus shareholders' equity) is a
        maximum of 45%. This ratio was 32% at the end of the second quarter
        of 2008, 30% at the end of 2007 and 33% at the end of 2006 and
        therefore the Company has further capacity to invest in the business
        with additional debt without exceeding the optimum level.

        The Company has provided a growing level of dividends to its
        shareholders over the last few years generally related to its growth
        in earnings. The dividends are declared bearing in mind the Company's
        current earnings, cash flow and financial leverage. The Company filed
        a normal course issuer bid commencing March 4, 2008 allowing the
        repurchase of up to 2.5 million Class B shares and 13,000 Class A
        shares in the following twelve months. All purchases are to be made
        on the open market. The number of shares and the price of such
        purchases will be determined by management when it believes that such
        purchases will enhance shareholder value.

        Other than the filing of the normal course issuer bid, there were no
        changes in the Company's approach to capital management during the
        year. The Company and its subsidiaries is subject to externally
        imposed capital requirements under its senior note agreements and its
        revolving bank debt; however, the Company is allowed further
        significant borrowings under the terms of these agreements at this
        time.

    11. FINANCIAL INSTRUMENTS

        The Company has exposure to the following forms of risk from its use
        of financial instruments: credit risk, market risk, and liquidity
        risk.

        CREDIT RISK

        Credit risk is the risk of financial loss to the Company if a
        customer or counterparty to a financial instrument fails to meet its
        contractual obligations, and arises principally from the Company's
        receivables from customers and investment securities.

        The Company has established a credit policy under which each new
        customer is analyzed individually for creditworthiness before the
        Company's payment and delivery terms and conditions are offered. The
        Company's review includes external ratings, where available, and in
        some cases bank references. Purchase limits are established for each
        customer, which represents the maximum open amount without requiring
        approval from senior management; these limits are reviewed quarterly.
        Customers that fail to meet the Company's benchmark creditworthiness
        may transact with the Company only on a prepayment basis.

        The Company is potentially exposed to credit risk arising from
        derivative financial instruments if a counterparty fails to meet its
        obligations. These counterparties are large international financial
        institutions and to date, no such counterparty has failed to meet its
        financial obligations to the Company. As at June 30, 2008, the
        Company does not have any exposure to credit risk arising from
        derivative financial instruments.

        The carrying amount of financial assets represents the maximum credit
        exposure.

        ---------------------------------------------------------------------
                                                      June 30,   December 31,
                                                      --------   ------------
                                                        2008         2007
                                                        ----         ----
          Cash and cash equivalents                  $    104.4   $     96.6
          Accounts receivable                             174.3        127.1
          Other accounts receivable                        15.9         12.5
          -------------------------------------------------------------------
        Total                                        $    294.6   $    236.2
        ---------------------------------------------------------------------


        The aging of accounts receivable at the reporting date was:

        ---------------------------------------------------------------------
                                                      June 30,   December 31,
                                                      --------   ------------
                                                        2008         2007
                                                        ----         ----
          0- 30 days                                 $    110.4   $     78.0
          31- 60 days                                      45.9         34.3
          61- 90 days                                      12.7         11.7
          over 90 days                                      9.1          7.3
          -------------------------------------------------------------------

        Total                                        $    178.1   $    131.3
        ---------------------------------------------------------------------

        Reconciliation of allowance for credit losses

        ---------------------------------------------------------------------
                                                      June 30,   December 31,
                                                      --------   ------------
                                                        2008         2007
                                                        ----         ----
          Opening balance                            $      4.2   $      4.2
          Decrease during the period                       (0.4)           -
          -------------------------------------------------------------------

        Total                                        $      3.8   $      4.2
        ---------------------------------------------------------------------

        MARKET RISK

        Market risk is the risk that changes in market prices, such as
        foreign exchange rates and interest rates, will affect the Company's
        income or the value of its holding of financial instruments.

        Foreign Exchange Risk

        The Company operates internationally, giving rise to exposure to
        market risks from changes in foreign exchange rates. The Company
        partially manages these exposures by contracting primarily in
        Canadian dollars, euros, U.K. pounds and U.S. dollars. Additionally,
        each subsidiary's sales and expenses are primarily denominated in its
        local currency further minimizing the foreign exchange impact on the
        operating results.

        The Company does not utilize derivative financial instruments for
        speculative purposes.

        A five percent strengthening of the Canadian dollar against the
        following currencies at June 30 would have increased (decreased)
        equity by the amounts shown below. This analysis assumes that all
        other variables, in particular interest rates, remain constant (a
        five percent weakening of the Canadian dollar against the above
        currencies at June 30 would have had the equal but opposite effect).
        The analysis is performed on the same basis for 2007.

        ---------------------------------------------------------------------

                                                      June 30,     June 30,
                                                      --------     --------
                                                        2008         2007
                                                        ----         ----

          US dollar                                  $     26.3   $     23.5
          Euro                                       $      2.7   $      0.5
          Pounds                                     $     10.7   $      9.4
          Peso                                       $      3.1   $      1.9
          Krone                                      $      2.9   $      2.6
          Real                                       $      2.3   $      1.5

        ---------------------------------------------------------------------


        Interest Rate Risk

        The Company is exposed to market risks related to interest rate
        fluctuations on its debt. To mitigate this risk, the company
        maintains a combination of fixed and floating rate debt.

        For the three-month and six-month periods ending June 2008, a
        100 basis point increase (decrease) in the interest rate would have
        resulted in $0.4 million and $0.8 million decrease (increase) in the
        earnings from operations of the Company and no impact on other
        comprehensive income. This analysis assumes that all other variables,
        in particular foreign currency rates, remain constant.

        LIQUIDITY RISK

        Liquidity risk is the risk that the Company will not be able to meet
        its financial obligations as they fall due. The Company's approach to
        managing liquidity risk is to ensure that it will always have
        sufficient liquidity to meet liabilities when due. The Company
        believes that future cash flows generated by operations and access to
        additional liquidity through capital and banking markets will be
        adequate to meet its financial obligations.

        The financial obligations of the Company include accounts payable,
        long-term debts and other-long term items. The contractual maturity
        of accounts payable are six months or less. Long-term debts have
        varying maturities extending to 2018.

        FAIR VALUES

        The Company's financial instruments consist of cash and cash
        equivalents, accounts receivable, accounts payable and long-term
        debt. The carrying value of cash and cash equivalents, accounts
        receivable, accounts payable approximates their fair values due to
        the immediate or short-term maturity of these financial instruments.

        The fair values of the Company's derivative financial instruments
        used to manage exposure to increases in procurement costs arising
        from certain commodities are estimated based upon fair value
        estimates of the related cash-settled foreign currency forward
        agreement provided by the counterparty to the transactions. Fair
        value of the forward exchange contracts reflects the cash flows due
        to or from the Company if settlement had taken place on
        June 30, 2008.
    

    MANAGEMENT'S DISCUSSION AND ANALYSIS
    Second Quarters Ended June 30, 2008 and 2007

    This document has been prepared for the purpose of providing Management's
Discussion and Analysis (MD&A) of the financial condition and results of
operations for the second quarters ended June 30, 2008 and 2007 and an update
to the 2007 Annual MD&A document. The information in this interim MD&A is
current to August 7, 2008 and should be read in conjunction with the Company's
June 30, 2008 unaudited second quarter financial statements released on August
7, 2008 and the 2007 Annual MD&A document, which forms part of the CCL
Industries Inc. 2007 Annual Report, dated February 28, 2008.
    The financial statements have been prepared in accordance with Canadian
generally accepted accounting principles (GAAP) and in accordance with the
requirements of Section 1751, Interim Financial Statements, of the CICA
Handbook. Unless otherwise noted, both the financial statements and this
interim MD&A are expressed in Canadian dollars as the reporting currency. The
measurement currencies of CCL's operations are primarily the U.S. dollar, the
euro, the U.K. pound sterling, the Australian dollar, the Brazilian real, the
Canadian dollar, the Chinese renminbi, the Danish krone, the Japanese yen, the
Mexican peso, the Polish zloty, the Russian rouble and the Thailand baht.
CCL's Audit Committee and its Board of Directors have reviewed this interim
MD&A to ensure consistency with the approved strategy and results of the
Company.
    Management's Discussion and Analysis contains forward-looking statements,
as defined in the Securities Act (Ontario), (hereinafter referred to as
"forward-looking statements"), including statements concerning possible or
assumed future results of operations of the Company. Forward-looking
statements typically are preceded by, followed by or include the words
"believes," "expects," "anticipates," "estimates," "intends," "plans" or
similar expressions. Forward-looking statements are not guarantees of future
performance. They involve risks, uncertainties and assumptions, including, but
not limited to: the impact of competition; consumer confidence and spending
preferences; general economic and geo-political conditions; currency exchange
rates; and CCL's ability to attract and retain qualified employees and,
accordingly, the Company's results could differ materially from those
anticipated in these forward-looking statements.

    1. Overview
    -----------
    CCL continues to experience very strong performance globally in its
healthcare and specialty businesses and good growth in its beverage businesses
as an offset to the weakness in the home and personal care categories in North
America and Europe created by the slowing U.S. economy. The issues created by
the U.S. economy have impacted some of CCL's global customers in consumer
expenditure related segments. In Europe, the economic situation is mixed with
the U.K. experiencing a significant slowdown similar to the U.S. and
continental Europe growing modestly. Economic activity continues to be strong
in Asia and other emerging markets and CCL's customers are experiencing
significant sales growth in these regions.
    Expectations are for a very uncertain period in the U.S. economy with
improvement dependent on the recovery of consumer spending, despite higher
inflation and record energy costs. The Asian and other developing regions
continue to grow meaningfully. The major concern is the spreading of the soft
U.S. economy to the rest of the world.

    2. Discontinued Operations
    --------------------------
    In November 2007, CCL completed the sale of its ColepCCL joint venture to
its majority partner for cash proceeds of $147 million, with half paid upon
closing and the balance paid at the end of February 2008. The disposition
resulted in a gain on the sale of $43.5 million after tax. CCL recorded this
divestiture as a discontinued operation in 2007 and consequently, the sales
and income contribution from ColepCCL have been excluded from the disclosure
of continuing operations.

    3. Review of Consolidated Continuing Operations
    -----------------------------------------------
    The following acquisitions and divestitures affected financial
comparisons to 2007 results in the second quarter and the year-to-date
periods. Further details on these transactions follow later in the Business
Segment Review section:

    
    -   In late January 2007, CCL acquired the shrink sleeve and stretch
        sleeve business of Illinois Tool Works, Inc. ("ITW") located in the
        United Kingdom, Austria, Brazil and the United States for
        $106 million.

    -   In December 2007, CCL entered into the 50% owned CCL-Kontur equity
        investment located in Moscow and St. Petersburg, Russia, servicing
        the personal care and beverage markets in the region for $9 million
        with a further $6 million invested in April 2008 following the assets
        being legally transferred to CCL-Kontur by the Russian partner. The
        net income from this investment for the first half of 2008 was
        nominal.

    -   In January 2008, CD-Design in Germany was acquired for $10 million,
        including assumed debt, as CCL's first entry into the durable label
        business as it services the European automotive original equipment
        manufacturing market in Europe. A further payment of a maximum of
        $5 million is contingent upon its 2008 financial performance.

    -   In April 2008, Clear Image Labels Pty. Ltd., a privately owned
        pressure sensitive label company based in Australia was acquired for
        $33 million in a combination of cash, restricted stock and assumed
        debt. Clear Image is a leading Australian wine label business with
        two operations in Australia servicing both the domestic and U.S.
        markets.

    -   In April 2008, the Company sold the inventory and equipment related
        to the ABS 'Bag-on-Valve' product line located within its
        Penetanguishene, Ontario, plant for $9 million payable in cash.
    

    Only the ITW acquisition did not impact financial comparisons for the
second quarter of 2008 compared with the same period in 2007.
    Sales for the second quarter of 2008 from continuing operations were
$312.8 million, up 3% from the $303.5 million recorded in the second quarter
of 2007, while sales for the first six months of 2008 of $607.9 million were
2% lower than last year's $619.7 million. Sales increased for the quarter by
4% due to organic growth and acquisitions, while foreign exchange accounted
for a reduction of 1%. The second quarter of 2007 also included the Easter
holiday period (it was in the first quarter of 2008) and this had a slight
positive impact on comparative sales. In addition, financial comparisons to
the prior year's second quarter results have been negatively affected by the
significant depreciation of the U.S. dollar (8%) and the U.K. pound (9%) but
this was offset in part by the appreciation of the euro (7%). Also, business
acquisitions in the Label Division have positively impacted the comparison to
prior periods. On a comparative basis with last year's second quarter, sales
were higher in the Label Division, lower in the Tube Division as higher local
sales were more than offset by unfavourable currency translation and lower in
the Container Division due to lower volume and unfavourable currency
translation. Year-to-date, sales decreased by 2% as a result of negative
foreign exchange effect of 5%, partially offset by organic growth and
acquisitions of 3%.
    Net earnings from continuing operations for the second quarter of 2008
were $24.1 million, down 7% from the $25.9 million recorded in the second
quarter of 2007 due primarily to unfavourable currency effects and favourable
tax recoveries last year (described below). These negative items more than
offset higher operating income and lower interest expense in the second
quarter of 2008. Operating income was up by $3.9 million or 10% from last
year's second quarter despite unfavourable currency effects. Excluding
currency, operating income from Label and Tube was higher than 2007 while
Container was below prior year. In the second quarter of 2008, net earnings
were impacted by a net gain from the sale of the Container Division's ABS
product line of $3.1 million ($2.8 million after tax) partially offsetting the
shutdown cost of the Label operation in Rhyl, Wales of $3.6 million
($2.6 million after tax). These two restructuring and other items (a non-GAAP
measure - refer to definition in Section 14) generated a loss of $0.5 million
(but a gain of $0.2 million after tax). In the second quarter of 2007, a
favourable tax settlement was reached in a foreign subsidiary and corporate
income tax rates were lowered in Canada, the United Kingdom and Denmark,
resulting in a decrease in future tax liabilities and income tax expense of
$3.6 million in the quarter.
    For the first six months of 2008, net earnings from continuing operations
were $51.6 million, down 1% from $52.2 million in the comparable 2007 period.
Net earnings for the six months of 2008 were affected by a gain on a note
receivable of $2.3 million ($1.6 million after tax), the gain on the ABS
product line of $3.1 million ($2.8 million after tax) and the loss from the
shutdown of the Rhyl, Wales location of $3.6 million ($2.6 million after tax).
This small home and personal care operation is being consolidated into the
plant near Leeds, U.K. Net earnings increased by $1.8 million from the
foregoing items. Net earnings for the six months of 2007 were affected by
Container restructuring and other costs of $1.0 million partially offset by a
gain on the sale of a property of $0.7 million for a net loss of $0.3 million
before tax (net gain of $0.2 million after tax). Including the positive effect
of favourable tax adjustments of $5.0 million, net earnings in 2007 increased
by $5.2 million due to the foregoing items.
    Net interest expense was $5.9 million in the second quarter of 2008,
$0.3 million lower than last year's corresponding quarter of $6.2 million due
primarily to lower average interest rates. Corporate expense of $4.2 million
for the quarter was higher than the $2.1 million in last year's second quarter
due to a significant reduction in self-insurance claims reserves last year and
realized exchange losses this year. The overall effective income tax rate was
25% for the second quarter of 2008 compared to 15% in the second quarter of
2007. The tax rate in the second quarter of 2007 was positively affected by a
tax settlement in a subsidiary and reductions in future tax liabilities
described above that reduced the tax rate from 27% to 15%.
    Basic earnings per Class B share from continuing operations were $0.75 in
the second quarter of 2008 compared to $0.80 earned in the same period last
year, a decrease of 6%. Restructuring and other items in the second quarter of
2008 increased basic earnings per Class B share by $0.01. Favourable tax
adjustments had a positive effect on earnings per share in the second quarter
of 2007 of $0.11. In addition, basic earnings per share from discontinued
operations in the second quarter of 2007 were $0.09. The negative impact of
currency translation and transactions on basic earnings per Class B share from
continuing operations was $0.04 in the second quarter of 2008 versus the
second quarter of 2007.
    For the first six months of 2008, earnings per Class B share were $1.60
compared to $1.62 in the prior year period, a 1% decrease. Restructuring and
other items increased earnings per Class B share by $0.06 for the first half
of 2008 versus a $0.16 increase in the same period last year. The negative
impact of currency translation and transactions on basic earnings per Class B
share from continuing operations was $0.15 in the first half of 2008 versus
the same period last year.
    Diluted earnings from continuing operations and net earnings per Class B
share were $0.02 lower than basic earnings per Class B share in the second
quarter of 2008 and $0.03 lower in the second quarter of 2007.
    The following table is presented to provide context to the change in the
Company's financial performance. There is an improvement over the prior year's
earnings performance from continuing operations, excluding the effect of
restructuring and other items and favourable tax adjustments.


    
    (in Canadian dollars)
    ---------------------
                                          2nd Quarter        Year-to-Date
                                      ---------------------------------------
    Basic Earnings per Class B shares     2008      2007      2008      2007
    ---------------------------------     ----      ----      ----      ----

    From continuing operations        $   0.75  $   0.80  $   1.60  $   1.62
    From discontinued operations           Nil  $   0.09       Nil  $   0.20

    Net gain from restructuring and
     other items and favourable tax
     adjustments included above       $   0.01  $   0.11  $   0.06  $   0.16


    The following is selected financial information for the ten most recently
completed quarters. In November 2007, the ColepCCL joint venture was sold and
is treated as Discontinued Operations.

    (in millions of Canadian dollars, except per share amounts)
    -----------------------------------------------------------
                               Qtr 1     Qtr 2     Qtr 3     Qtr 4     Total
                               -----     -----     -----     -----     -----
    Sales-continuing operations
      2008                  $  295.1  $  312.8
      2007                     316.2     303.5  $  274.9  $  249.7  $1,144.3
      2006                     268.6     257.5     246.6     256.8   1,029.5

    Net earnings-continuing operations
      2008                      27.5      24.1
      2007                      26.3      25.9      20.8      20.4      93.4
      2006                      18.1      15.1      10.0      21.7      64.9

    Net earnings
      2008                      27.5      24.1
      2007                      30.0      28.8      23.8      65.3     147.9
      2006                      21.1      17.6      13.6      25.1      77.4

    Net earnings per Class B share - continuing operations
      Basic
      2008                  $   0.85  $   0.75
      2007                      0.82      0.80  $   0.64  $   0.64  $   2.90
      2006                      0.57      0.46      0.32      0.67      2.02

      Diluted
      2008                      0.82     0.73
      2007                      0.79     0.77       0.61      0.62      2.79
      2006                      0.55     0.45       0.30      0.65      1.95

    Net earnings per Class B share
      Basic
      2008                      0.85     0.75
      2007                      0.93     0.89       0.74      2.03      4.59
      2006                      0.66     0.54       0.43      0.78      2.41

      Diluted
      2008                      0.82     0.73
      2007                      0.90     0.86       0.71      1.95      4.42
      2006                      0.64     0.53       0.41      0.75      2.33

    Restructuring and other
     items and favourable
     tax adjustments and
     gain on discontinued
     operations on basic
     earnings per Class B
     share
      2008                      0.05      0.01
      2007                      0.05      0.11      0.12      1.49      1.77
      2006                     (0.03)    (0.03)    (0.10)     0.20      0.04
    

    The impact on basic net earnings per Class B share of the gain on the
sale of ColepCCL in November 2007 is included in the table above. Net earnings
per Class B share have generally increased over time but have also fluctuated
significantly due to changes in foreign exchange rates, restructuring costs
and other items and favourable tax adjustments.
    In addition, the seasonality of the business has evolved with the first
quarter generally being the strongest due to the number of work days and
various customer related activities. Also, there are many products that have a
spring-summer bias in North America and Europe such as agricultural chemicals
and certain beverage products, which generate additional sales volumes for CCL
in the first half of the year. The last two quarters of the year are
negatively affected from a sales perspective by summer vacation in the
Northern Hemisphere, Thanksgiving and the holiday season shutdowns at the end
of the fourth quarter.

    4. Business Segment Review
    --------------------------

    
    Label Division
    --------------
    ($ millions)          Second Quarter                 Year-To-Date
                    ---------------------------------------------------------
                      2008      2007       +/-      2008      2007       +/-
                      ----      ----       ---      ----      ----       ---
    Sales           $258.4    $238.4       +8%    $496.3    $483.5       +3%
    Operating
     Income (1)     $ 39.7    $ 32.7      +21%    $ 76.9    $ 71.6       +7%
    Return on
     Sales (1)       15.4%     13.7%               15.5%     14.8%
    Capital
     Spending       $ 42.2    $ 32.2              $ 88.5    $ 59.1
    Depreciation
     and
     Amortization   $ 16.3    $ 15.2              $ 31.2    $ 28.9

    (1) A non-GAAP measure (refer to definition in Section 14).
    

    Sales for the Label Division were $258.4 million for the second quarter,
up 8% from $238.4 million in the same quarter last year. The change in sales
was the result of acquisitions and organic growth as foreign exchange had no
net effect.
    Sales growth in the second quarter was due in part to the CD-Design
acquisition completed at the beginning of February 2008 and the Clear Image
acquisition effective the beginning of April 2008. However, the overall base
business also generally experienced a continuation of the trend of higher
sales and operating income.
    North American sales in the Label Division were up slightly compared to
last year, excluding negative currency effects. Healthcare, now the largest
product group in North America, continued to grow organically at a
double-digit rate. Home and personal care sales were modestly lower for the
quarter compared to last year, particularly in high-end personal care and
showing no signs of improvement in the third quarter. The battery business was
seasonally slow and was also impacted by customers moving their battery
manufacturing to Asia. Specialty products sales were up 9% compared to last
year's second quarter, with strong promotional label business partially offset
by a slightly weaker ag-chem market related to an unfavourable lawn and garden
season. Shrink sleeve sales, although relatively small, grew double-digits
over last year's level. Overall, excluding currency translation, profitability
was up slightly over last year as cost inflation has been challenging but
offset by improved product mix and cost reduction initiatives. Order intake
for North America has been stable with continued strong healthcare business
offsetting softer consumer related products.
    In Europe, sales continued to show modest growth excluding acquisitions
and currency effects. The healthcare and specialty businesses were strong, up
double-digits, excluding currency and this should continue into the third
quarter. Home and personal care volume was down overall versus last year but
varied by country. However, significant new home and personal care business
has been awarded, which provides upside going into 2009. In June 2008, the
Company initiated the shutdown of the Rhyl, Wales operation, consolidating
most of its business to its plant near Leeds, England. The battery business
continued to record lower sales due to the impact of customers moving their
battery manufacturing to Asia. Beverage sales were up double-digits with
improved margins due to our patented wash-off label technology for beer
bottles. Shrink and stretch sleeve sales were up modestly with U.K. softness
more than offset by strong growth in central Europe. The recently acquired
CD-Design performed above management's expectations in the quarter.
Profitability overall in Europe was up significantly due to better business
mix.
    In emerging markets consisting of Latin America, Eastern Europe, Asia and
Australia, sales were up 13% in local currencies overall in the second quarter
versus last year, excluding the acquisition. Sales were down slightly in
Brazil, mainly in sleeves, but the core was solid. In Mexico, the move to a
new facility caused sales to be flat with last year. Poland continues to show
good sales improvement with new business orders commencing later in the year.
Sales in Asia in home and personal care were up significantly with strong
growth in China offset in part by slightly weaker sales in Thailand compared
to a strong second quarter last year. Battery and Beverage sales in China
increased significantly. The Clear Image acquisition in Australia performed to
expectations in the wine label business. The Company announced recently that
plans are in place to expand an existing plant in China and to build new
plants in the north of China, Vietnam, India, Japan and a second facility in
Thailand.
    The equity investment in Russia reported nominal net earnings for its
second quarter since CCL's involvement, as it continues to ramp up to service
global customers. Overall in emerging markets, the outlook continues to be
very positive with minimal effect from the uncertain global economy.
    Operating income for the second quarter of 2008 was $39.7 million, up 21%
from $32.7 million in the second quarter of 2007. Strong improvement in local
operating income was partially offset by negative currency translation.
Increases in income in healthcare and geographic improvement generally outside
of North America were slightly offset by reductions primarily in the North
American and European home and personal care businesses. The Division incurred
$0.7 million of moving costs in the second quarter of 2008 as it relocates a
number of operations to new facilities. Return on sales at 15.4% meaningfully
exceeded our internal targets and was well above the 13.7% return generated in
last year's second quarter.
    Sales and operating income in the second quarter were $11.8 million and
$1.5 million, respectively, from the Clear Image and CD-Design acquisitions.
    Sales backlogs for the label business are generally low due to short
customer lead times, but indications are that customers' orders continue to be
generally firm through the third quarter of 2008 with the exception of the
continuing impact of the uncertain U.S. economy and the risks of it migrating
globally. Cost inflation is challenging due to the weak U.S. dollar and the
U.K. pound but the Division continues to leverage its purchasing practices and
increase prices where possible.
    The Label Division invested $88.5 million in capital in the first half of
2008 compared to $59.1 million in the same period last year. The capital was
spent throughout the Division to maintain and expand its manufacturing base by
adding presses in strategic locations. In the second quarter, capital was
spent on the purchase of a leased building in Solingen, Germany for CD-Design
($11 million), the plant construction for the relocated Paris, France
operation and a new plant in Montréal. The Division expects to continue to
spend capital to increase its capabilities, expand geographically, and replace
or upgrade existing plants and equipment. Depreciation and amortization for
the Label Division were $31.2 million for the first half of 2008 and $28.9
million in the comparable 2007 period.

    
    Container Division
    ------------------
    ($ millions)          Second Quarter                 Year-To-Date
                    ---------------------------------------------------------
                      2008      2007       +/-      2008      2007       +/-
                      ----      ----       ---      ----      ----       ---
    Sales           $ 39.2    $ 49.3      -20%    $ 80.7    $102.2      -21%
    Operating
     Income (1)     $  2.8    $  6.0      -53%    $  8.2    $ 12.0      -32%
    Return on
     Sales (1)        7.1%     12.2%               10.2%     11.7%
    Capital
     Spending       $  6.9    $  2.0              $ 11.4    $  2.5
    Depreciation
     and
     Amortization   $  2.5    $  2.8              $  4.9    $  5.7

    (1)  A non-GAAP measure (refer to definition in Section 14).
    

    Sales in the second quarter were $39.2 million, down 20% from
$49.3 million last year. Sales decreased for the quarter due to a 10%
reduction in the volume of can sales to U.S. customers, the sale of the ABS
"bag on valve" business earlier this year and the significant unfavourable
currency translation impact. Excluding the effects of currency and the
divested product line, sales were down 9% over the second quarter of 2007 in
local currencies.
    The Container Division experienced an overall decrease in sales volume
primarily due to the impact of the loss, in late second quarter last year, of
a relatively high volume but low margin aerosol product. In addition, the sale
of sun care products dropped off in the last half of the quarter due to
reduced customer demand. The divested ABS product line was strong seasonally
in the second quarter of 2007 relating to the sun care business. The volume
loss in cans occurred exclusively at the operation in Penetanguishene,
Ontario, resulting in the need for further cost reductions at this location in
the second half of this year. Sales volumes at the Hermitage facility in the
U.S. increased over the second quarter of 2007 as new business for aluminum
beverage bottles offset a soft U.S. personal care market for aerosols. Mexican
aerosol container sales volumes were flat with last year's performance as
capacity has been sold out. However, equipment has been transferred from
Canada to increase capacity for the third quarter. The new plant in
Guanajuato, Mexico, will be up and running at the end of the year to satisfy
the trend of many major customers continuing to move their aerosol filling
operations to Mexico for requirements in both the U.S. and Latin American
markets. In addition, there are opportunities to build business for beverage
bottles in Mexico and Central America.
    Operating income for the Container Division in the second quarter of 2008
was $2.8 million, down 53% from $6.0 million in the second quarter of 2007.
This decline in profitability was due to a combination of lower sales volume,
the sale of the ABS product line and unfavourable currency translation. The
Division continued to successfully pass on to customers significant cost
inflation in aluminum, chemicals and energy and maintained similar direct
margins over these variable costs as the second quarter of 2007. All of the
profit reduction in the Division was recorded at the Penetanguishene, Ontario,
operation and was largely sales volume and currency related. Return on sales
was reduced in the second quarter of 2008 to 7.1% compared to 12.2% in last
year's second quarter.
    The aluminum container plant in Penetanguishene, Ontario, also sells the
vast majority of its production to the United States market in U.S. dollars.
The business had previously hedged a part of the Canadian dollar value of
these U.S. dollar sales by way of forward contracts. This practice was
terminated in 2007 as the Company expects the impact of hedging not to be
material over time. The unfavourable change in the exchange rates on U.S.
currency transactions reduced income for the Container Division by
$0.8 million ($0.02 per share) in the second quarter of 2008 compared to
second quarter 2007 and $2.3 million ($0.05 per share) for the first half of
2008.
    The Container Division invested $11.4 million in capital in the first
half of 2008 compared to $2.5 million in the same quarter last year. The
majority of the second quarter's capital spending was on the new plant
construction in Guanajuato, Mexico. Depreciation and amortization for the
first half of 2008 and 2007 were $4.9 million and $5.7 million, respectively.
    The Container Division continues to hedge some of its anticipated future
aluminum purchases through futures contracts and has hedged 34% of its 2008
requirements. The cost of aluminum and chemicals persist at near record levels
and the Division continues to be challenged to face the need to factor these
costs into selling prices to customers in a soft market environment.
    Order intake for the Division continues to be softer than planned in the
U.S. home and personal care market offset by stronger but more volatile demand
for beverage bottles plus new opportunities in Mexico. The loss of the large
aerosol product volume for one particular customer at the end of the first
half of 2007 will have no impact on sales comparisons for the second half of
2008.

    
    Tube Division
    -------------
    ($ millions)          Second Quarter                 Year-To-Date
                    ---------------------------------------------------------
                      2008      2007       +/-      2008      2007       +/-
                      ----      ----       ---      ----      ----       ---
    Sales           $ 15.2    $ 15.8       -4%    $ 30.9    $ 34.0       -9%
    Operating
     Income (1)     $  0.3    $  0.2      +50%    $  0.4    $  1.6      -75%
    Return on
     Sales (1)        2.0%      1.3%                1.3%      4.7%
    Capital
     Spending       $  1.5    $  1.0              $  2.8    $  1.3
    Depreciation
     and
     Amortization   $  1.7    $  1.8              $  3.4    $  3.6

    (1)  A non-GAAP measure (refer to definition in Section 14).
    

    Sales in the second quarter for the Tube Division were $15.2 million,
down 4% from $15.8 million last year. Sales in local currency increased by 4%
for the quarter but were more than offset by the impact of currency
translation. Tube sales were up over last year as new business has been added
despite the slowing economy's negative effect on high-end personal care
products. Further volume increases are expected to commence in the next
quarter as new products come off stability testing and go into production.
    Operating income for the Tube Division for the second quarter of 2008 was
$0.3 million, up from $0.2 million in the second quarter of 2007. This is the
second consecutive quarter since the second quarter of 2007 that it has
recorded a profit. The return on sales was 2.0% in the second quarter compared
to a 1.3% return in the prior year's second quarter. Plans to move into a new
but much smaller facility in Los Angeles in late 2008 are well underway and
are critical to the improvement of divisional profitability in 2009.
    The Tube Division invested $2.8 million in capital in the first half of
2008 compared to $1.3 million in the same period last year. Depreciation and
amortization for the first half of 2008 and 2007 were $3.4 million and
$3.6 million, respectively.

    5. Currency Translation and Currency Transaction Hedging
    --------------------------------------------------------
    As only about 10% of CCL's sales are generated from Canadian
manufacturing locations, the remaining 90% of sales from international
operations are recorded in foreign currencies and then translated into
Canadian dollars for reporting purposes. The U.S. dollar is the functional
currency for approximately 36% of the Company's total sales and it depreciated
by a substantial 8% on average compared to the Canadian dollar in the second
quarter of 2008 versus last year's second quarter. European currencies are now
approximately 43% of CCL's sales and the primary European currency, the euro,
appreciated by 7% compared to the Canadian dollar versus the prior year's
quarter while conversely, the U.K. pound declined by 9%. Fluctuations in
foreign exchange rates can have a material effect on the Company's
profitability. In this quarter, the positive value of the euro and other
currencies partially offset the negative value of the U.S. dollar and the U.K.
pound. The negative impact on earnings per share due to currency translation
was $0.02 compared to last year's second quarter. Year-to-date, earnings per
share have been negatively affected by $0.10 due to currency translation
compared to last year's six-month period.
    The Company has not hedged any foreign currency transactions since
June 2007. The Container Division sells products from its Canadian plant into
the U.S. market in U.S. dollars, as previously discussed. The significant
change in the exchange rates on U.S. currency transactions reduced comparative
income for continuing operations by $0.8 million in the second quarter of 2008
and reduced comparative earnings per share by $0.02 for the quarter. Currency
transactions reduced comparative income from operations for the first half of
2008 by $2.3 million or $0.05 per share.

    6. Liquidity and Capital Resources
    -----------------------------------

    The Company's capital structure is as follows:

    
                                         June 30,   December 31,   June 30,
                                         --------   ------------   --------
    $ Millions                             2008         2007         2007
    ----------                             ----         ----         ----

    Total debt                          $    460.8   $    403.4   $    503.2
    Cash and cash equivalents                104.4         96.6         86.9
                                        -----------  -----------  -----------
    Net debt (1)                        $    356.4   $    306.8   $    416.3
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------

    Shareholders' equity                $    775.1   $    717.9   $    668.2
                                        -----------  -----------  -----------
                                        -----------  -----------  -----------
    Net debt: total book
     capitalization (2)                      31.5%        29.9%        38.4%
    Book value per Class B share(3)     $    24.33   $    22.12   $    20.79

    (1) Net debt is a non-GAAP measure (refer to definition in Section 14).

    (2) Net debt: total book capitalization is a non-GAAP measure (refer to
        definition in Section 14).

    (3) Book value per Class B share is a non-GAAP measure (refer to
        definition in Section 14).
    

    The Company's financial position remains solid. As of June 30, 2008, cash
and cash equivalents amounted to $104 million compared to $97 million at
December 31, 2007 and $87 million at June 30, 2007. Net debt was $356 million
at June 30, 2008, $49 million higher than the net debt of $307 million at the
end of December 2007. The increase in net debt in this time frame is primarily
due to the acquisition of CD-Design and Clear Image.
    Net debt to total book capitalization at June 30, 2008 was 31.5%, down
from 38.4% at the end of June 2007 due to the ColepCCL sale and up slightly
from the 29.9% at the end of 2007 as a result of the CD-Design and Clear Image
acquisitions and seasonal working capital increases partially offset by the
collection of the balance of the ColepCCL sale proceeds in February. Book
value per share, a non-GAAP measure, defined later in Section 14, was $24.33
at the end of the second quarter of 2008, 17% above $20.79 a year ago and 10%
above the $22.12 at December 31, 2007. The increase is primarily the result of
the retained earnings generated this year and a reduction in the accumulated
other comprehensive loss.
    The Company's debt structure is primarily comprised of three private debt
placements completed in 1997, 1998 and 2006 for a total of US$ 326.8 million
(Cdn$ 333.3 million) and a five-year revolving line of credit of $95 million
at June 30, 2008. This was unchanged from December 31, 2007. The Company's
overall average interest rate is currently 5.4% after factoring in the related
Interest Rate Swap Agreements ("IRSAs") and Cross Currency Interest Rate Swap
Agreements ("CCIRSAs") compared to 5.8% at December 31, 2007. The IRSAs and
CCIRSAs are discussed later in this report.
    In January 2007, the Company established a five-year revolving line of
credit with a Canadian chartered bank for $95 million. As at the end of
June 2008, $84 million was borrowed under this line of credit. This line of
credit was extended in January for a further year and expires in January 2013.
The Company may elect to request an annual extension at the end of 2008 to
extend the term for a further year.
    The Company believes that it has sufficient cash on hand, the ability to
generate cash flow from operations and the financial strength to access
capital markets to fund its expected financial obligations over the near term.

    7. Cash Flow
    ------------
    During the second quarters of 2008 and 2007, the Company generated cash
from operating activities from continuing operations of $37.3 million and
$50.5 million, respectively. The decrease in cash flow compared to last year's
second quarter was primarily due to the timing of a seasonal working capital
increase this year. On a year-to-date basis, the seasonal build-up of normal
working capital is in line with last year. The collection of the remaining
ColepCCL receivable in February was the primary reason for the positive cash
flow from working capital this year.
    Capital spending in the second quarter of $50.9 million compared to
$39.0 million last year. The major capital expenditures in the second quarter
were for many new presses, plant expansions and new plants for the Label
Division, including the acquisition of the CD-Design building, and a new plant
for the Container Division. This level of capital spending was higher than the
$20.7 million of depreciation and amortization in the second quarter of 2008
and the $19.5 million in the second quarter of 2007. Plans for capital
spending in 2008 are still expected to be in the $180 million range for the
year. The Company is continuing to expand its business base into new markets
and invest in assets to add capacity and improve its competitiveness.
    Dividends declared in each of the second quarters of 2008 and 2007 were
$4.5 million and $3.9 million, respectively. The total number of shares
outstanding as at June 30, 2008 and 2007 was 31.9 million and 32.3 million,
respectively. The Company has historically paid out dividends at a rate of
20-25% of net earnings. Since the Company's cash flow and financial position
are strong, the Board of Directors approved a continuation of the higher
dividend declared earlier this year of $0.1275 per Class A share and $0.14 per
Class B share to shareholders of record as of September 16, 2008 and payable
on September 30, 2008. The annualized dividend rate is $0.51 per Class A share
and $0.56 per Class B share.
    The Company's share repurchase program under a normal course issuer bid
("bid") became effective March 4, 2008 indicating the intention to acquire
under the bid up to 13,000 Class A voting shares and 2,500,000 of its issued
and outstanding Class B non-voting shares in the following 12-month period. In
March 2008, the Company repurchased 415,900 Class B shares under the bid at an
average price of $28.37 for a total cost of $11.8 million and in June 2008
acquired a further 202,100 Class B shares at an average price of $31.13 for a
total cost of $6.3 million. Total purchases in 2008 to date have been
618,000 Class B shares at an average price of $29.28 for a total cost of
$18.1 million.

    8. Interest Rate and Foreign Exchange Management
    ------------------------------------------------
    The Company has utilized IRSAs to allocate notional debt between fixed
and floating rates since the underlying debt is fixed rate debt with U.S.
financial institutions. Since the Company has developed into a global business
with a significant asset base in Europe in the last few years, it has utilized
CCIRSAs to effectively convert notional U.S. dollar fixed rate debt into fixed
and floating rate euro debt to hedge its euro-based assets and cash flows.
    The effect of the IRSAs and CCIRSAs had no effect on interest expense in
the second quarter of 2008 compared to a reduction in interest expense of
$0.2 million in the second quarter of 2007. Interest coverage (refer to
definition in Section 14) improved to 6.5 times in 2008 compared to 6.2 times
as at June 30, 2007.

    9. New Accounting Standards
    ---------------------------

    A. Changes in Accounting Policies
    ---------------------------------
    The unaudited interim consolidated financial statements are based upon
accounting principles consistent with those used and described in the annual
consolidated statements, except that: effective January 1, 2008, the Company
adopted the new Canadian Institute of Chartered Accountants (CICA) Handbook
Section 1535, "Capital Disclosures"; Section 3031, "Inventories"; Section
3862, "Financial Instruments - Disclosures" and Handbook Section 3863,
"Financial Instruments - Presentation."
    Section 1535 establishes standards for disclosing information about an
entity's capital and how it is managed. The Company's Capital Management
Policy is as follows:
    The Company's objective is to maintain a strong capital base throughout
the economic cycle so as to maintain investor, creditor and market confidence
and to sustain the future development of the business. This capital structure
supports the Company's objective to provide an attractive financial return to
its shareholders equal to its leading specialty packaging peers (between 12% -
14% recently).
    The Company defines capital as total shareholders' equity and measures
the return on capital (or return on equity) by annual net income before
restructuring and other items and favourable tax adjustments by the average of
the beginning and end of year shareholders' equity. In both 2006 and 2007, the
return on capital was 13% and was well within the range of its leading
specialty packaging peers.
    Management and the Board maintain a balance between the expected higher
return on capital that might be possible with a higher level of financial debt
and the advantages and security afforded by a lower level of financial
leverage. The Company believes that an optimum level of net debt (refer to
definition in Section 14) to total book capitalization (refer to definition in
Section 14) is a maximum of 45%. This ratio was 32% at the end of the second
quarter of 2008, 30% at the end of 2007 and 33% at the end of 2006 and
therefore, the Company has further capacity to invest in the business with
additional debt without exceeding the optimum level.
    The Company has provided a growing level of dividends to its shareholders
over the last few years generally related to its growth in earnings. The
dividends are declared bearing in mind the Company's current earnings, cash
flow and financial leverage. The Company filed a normal course issuer bid
("bid") commencing March 4, 2008 allowing the repurchase of up to 2.5 million
Class B shares and 13,000 Class A shares in the following twelve months. All
purchases are to be made on the open market. The number of shares and the
price of such purchases will be determined by management when it believes that
such purchases will enhance shareholder value. The Company has repurchased
approximately 600,000 shares so far under the bid.
    Other than the filing of the bid, there were no changes in the Company's
approach to capital management during the year. The Company and its
subsidiaries are subject to externally imposed capital requirements under its
senior note agreements and its revolving bank debt; however, the Company is
allowed further significant borrowings under the terms of these agreements at
this time.
    Section 3031 addresses the measurement and disclosure of inventories.
This standard provides changes to the measurement and more extensive guidance
on the determination of cost, including allocation of overhead; narrows the
permitted cost formulas; requires impairment testing and expands the
disclosure requirements to increase transparency.
    The difference in the measurement of opening inventory may be applied to
the opening inventory for the period, with an adjustment to opening retained
earnings with no prior periods restated or retrospectively with a restatement
to prior periods in accordance with Section 1506, "Accounting Changes." There
was no difference to be accounted for by the Company.
    Inventories are valued at the lower of cost and net realizable value on
the first-in, first-out basis. The cost of work in process and finished goods
include materials, direct labour applied to the product and the applicable
share of overhead. Net realizable value is based on selling price less
estimated selling costs. Allowances are made for slow-moving inventory.
    Section 3862 and Section 3863 revise and enhance the disclosure
requirements of Handbook Section 3861, "Financial Instruments - Disclosure and
Presentation." These Sections require disclosure of information with regards
to the significance of financial instruments for the Company's financial
position and performance and the nature and extent of risks arising from
financial instruments to which the Company is exposed during the period and at
the balance sheet date and how the Company manages those risks.
    The Company has exposure to the following forms of risk from its use of
financial instruments: credit risk, market risk and liquidity risk.
    Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company's receivables from
customers and investment securities.
    The Company has established a credit policy under which each new customer
is analyzed individually for creditworthiness before the Company's payment and
delivery terms and conditions are offered. The Company's review includes
external ratings, where available, and in some cases bank references. Purchase
limits are established for each customer, which represents the maximum open
amount without requiring approval from senior management; these limits are
reviewed quarterly. Customers that fail to meet the Company's benchmark
creditworthiness may transact with the Company only on a pre-payment basis.
    The Company is potentially exposed to credit risk arising from derivative
financial instruments if a counterparty fails to meet its obligations. These
counterparties are large international financial institutions and to date, no
such counterparty has failed to meet its financial obligations to the Company.
As at June 30, 2008, the Company does not have any exposure to credit risk
arising from derivative financial instruments.
    Market risk is the risk that changes in market prices, such as foreign
exchange rates and interest rates, will affect the Company's income or the
value of its holding of financial instruments.
    The Company operates internationally, giving rise to exposure to market
risks from changes in foreign exchange rates. The Company partially manages
these exposures by contracting primarily in Canadian dollars, euros, U.K.
pounds and U.S. dollars. Additionally, each subsidiary's sales and expenses
are primarily denominated in its local currency, further minimizing the
foreign exchange impact on the operating results.
    The Company does not utilize derivative financial instruments for
speculative purposes.
    Interest rate risk is the risk that the Company is exposed to market
risks related to interest rate fluctuations on its debt. To mitigate this
risk, the Company maintains a combination of fixed and floating rate debt.
    Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they fall due. The Company's approach to manage
liquidity risk is to ensure that it will always have sufficient liquidity to
meet liabilities when they are due. The Company believes that future cash
flows generated by operations and access to additional liquidity through
capital and banking markets will be adequate to meet its financial
obligations.

    B. Recently Issued Accounting Standards
    ---------------------------------------
    In November 2007, the CICA issued Handbook Section 3064, "Goodwill and
Intangible Assets," that replaced Section 3062, "Goodwill and Other Intangible
Assets," and amended Section 1000, "Financial Statement Concepts." The new
standard is effective for interim and annual financial statements for fiscal
years beginning on or after October 1, 2008. The new section establishes
standards for the recognition, measurement, presentation and disclosure of
goodwill and other intangible assets subsequent to its initial recognition.
Standards concerning goodwill are unchanged from the standards included in the
previous Section 3062. Guidance is provided on the definition of an intangible
asset and the recognition of internally generated intangible assets. The
Company will comply with the requirements of the new standard when the
standard becomes effective.

    C. International Financial Reporting Standards ("IFRS")
    -------------------------------------------------------
    The Canadian Accounting Standards Board confirmed in February 2008 that
all publicly accountable enterprises will be required to report under IFRS for
fiscal periods beginning on or after January 1, 2011.
    The Company has begun to formulate a framework to address the change to
IFRS. CCL's corporate financial managers have been attending seminars on the
details behind the transition. During the balance of the year, the Company
will be forming a project team to implement IFRS throughout the organization
and to determine the potential financial and other impacts it may have on the
business. The Company currently operates in certain countries that have
implemented IFRS and expects that it will be able to leverage this knowledge
during the transitional period.

    10. Commitments and Contingencies
    ---------------------------------
    The Company has no material "off-balance sheet" financing obligations
except for typical long-term operating lease agreements. The nature of these
commitments is described in note 14 of the December 31, 2007 Annual
Consolidated Financial Statements. The Company does not have any material
related party transactions. There are no defined benefit plans funded with CCL
stock.
    The Company has had no material changes in contractual obligations in the
second quarter of 2008 and has not made any material changes in critical
accounting estimates in the second quarter of 2008.

    11. Controls and Procedures
    ---------------------------
    Disclosure Controls and Procedures are designed to provide reasonable
assurance that all relevant information is gathered and reported to senior
management, including the Vice Chairman and Chief Executive Officer ("CEO")
and the Executive Vice President and Chief Financial Officer ("CFO") on a
timely basis so that appropriate decisions can be made regarding public
disclosure.
    At the end of 2007, the CEO and CFO evaluated the effectiveness, design
and operation of CCL's disclosure controls and procedures, including a review
of the activities of the Disclosure Committee. This Committee reviews all
external reports and documents of CCL. As of June 30, 2008, based on this
evaluation of the disclosure controls and procedures, the CEO and CFO have
concluded that CCL's disclosure controls and procedures, as defined in
Multilateral Instrument 52-109 ("MI 52-109") are effective to ensure that
information required to be disclosed in reports and documents that CCL files
or submits under Canadian securities legislation is recorded, processed,
summarized and reported within the time periods specified.
    MI 52-109 also requires CEOs and CFOs to certify that they are
responsible for establishing and maintaining the internal controls over
financial reporting for the issuer, that those internal controls have been
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements in accordance
with Canadian GAAP, and that the issuer has disclosed any changes in its
internal controls during its most recent interim period that has materially
affected or is reasonably likely to materially affect its internal control
over financial reporting.
    As at the end of 2007, the CEO and the CFO certified that they were in
compliance with the regulations of MI 52-109 except for the Company's
investment in the ColepCCL joint venture. The ColepCCL joint venture was sold
in November 2007.
    As at June 30, 2008, the CEO and CFO certified that they are responsible
for establishing and maintaining controls over financial reporting for CCL
Industries Inc., that those internal controls have been designed to provide
reasonable assurance regarding the reliability of financial reporting with
Canadian GAAP and that the Company has had no change in its internal controls
that has materially affected or is likely to materially affect its internal
controls over financial reporting.

    12. Risks and Strategies
    ------------------------
    The 2007 Management's Discussion and Analysis in the Annual Report
detailed risks to the Company's business and the strategies that were planned
for 2008 and beyond. There have been no material changes to those risks and
strategies. With the sale of the ColepCCL joint venture, CCL is no longer
exposed to the inherent risks associated with owning a minority investment in
a European contract manufacturing business. However, the Company remains
significantly dependent on the European and emerging market economies and
their currencies. These non-Canadian risks were described in the 2007
Management's Discussion and Analysis.

    13. Outlook
    -----------
    The Company continues to focus on the growth prospects of its specialty
packaging businesses within its core competencies. The Company will continue
to prudently manage and reinvest its cash on hand and improve its cash flow
generation with a view to sustaining and enhancing shareholder value in 2008
and beyond. CCL is continuing to integrate and reorganize the large number of
recent acquisitions it has made to improve profitability and simplify
administration. The Company is investigating mid-sized potential acquisition
candidates that meet its criteria of core products and customers, and the
expectation of earnings accretion in the first year of ownership. The recent
pull back in equity valuations and the extended liquidity crisis may provide
more favourable pricing of potential business acquisitions. The Company will
continue to buy back its stock if it believes that it will improve shareholder
value assuming that it has the financial resources to do so.
    CCL continues to invest in its businesses to maintain its premier
position as the largest global supplier of pressure sensitive labels and a
leading specialty packager. The Company intends to further expand its product
offerings geographically and enter into new regions based on its customers'
need for its services and products. This growth can be generated organically
or by way of acquisitions.
    There are challenges expected in the remainder of 2008. The most
significant macro issues are the nominal growth in the U.S. economy combined
with the global liquidity crisis which may threaten growth prospects in the
rest of the world, as evidenced by the troubled economy that has developed in
the U.K. At CCL, there are concerns associated with the rising cost of
aluminum in the Container Division, the return to more normal profitability in
the Tube business and the Company's ability to maintain margins in all
Divisions given higher inflation, particularly on energy related commodities.
In addition, the Label Division has relocated its operations in Mexico and
Paris to new facilities this year and may incur additional direct and indirect
costs associated with these moves. Later this year, the Container business
will be completing a new plant in Mexico and the Tube business will be
relocating its Los Angeles operation to a new facility. There will be direct
and indirect costs associated with these moves.
    The strength of the Canadian dollar relative to the U.S. dollar and the
European currencies negatively impacted overall earnings for the first half of
2008 compared to 2007. Based on current exchange rates, further comparative
translation and transaction losses would occur in CCL's U.S. operations for
the third quarter of 2008 but at a lower level than the first half of 2008.
However, based on current rates, the euro would provide a significant positive
comparative translation effect. Nonetheless, the value of the Canadian dollar
may have a dramatic impact, positive or negative, on earnings for the balance
of 2008.

    14. Key Performance Indicators and Non-GAAP Measures
    ----------------------------------------------------
    CCL measures the success of its business using a number of key
performance indicators, many of which are in accordance with Canadian GAAP as
described throughout this report. The following performance indicators are not
measurements in accordance with Canadian GAAP and should not be considered as
an alternative or replacement of any other measure of performance under
Canadian GAAP. These non-GAAP measures do not have any standardized meaning
and may not be comparable to similar measures presented by other issuers.
    Book Value per Share - A measure of the shareholders' equity at book
value per the combined Class A and Class B shares. It is calculated by
dividing shareholders' equity by the actual number of Class A and Class B
shares outstanding, excluding amounts and shares related to shares held in
trust and the executive share purchase plan.
    Interest Coverage - A measure indicating the relative amount of operating
income earned by the Company compared to the amount of interest expense
incurred by the Company. It is calculated as operating income including
discontinued operations before restructuring and other items plus net interest
expense divided by net interest expense calculated on a 12-month rolling
basis.
    Net Debt - A measure indicating the financial indebtedness of the Company
assuming that all cash on hand is used to repay a portion of the outstanding
debt. It is defined as current debt including cash advances plus long-term
debt less cash and cash equivalents.
    Net Debt to Total Book Capitalization - A measure that indicates the
financial leverage of the Company. It measures the relative use of debt versus
equity in the book capital of the Company. Net debt to total book
capitalization is defined as Net Debt (see above) divided by Net Debt plus
shareholders' equity, expressed as a percentage.
    Operating Income - A measure indicating profitability of the Company's
business units defined as operating income before corporate expenses,
interest, restructuring and other items and tax.
    Restructuring and other items and favourable tax adjustments - A measure
of significant non-recurring items that are included in net earnings. The
impact of restructuring and other items and favourable tax adjustments on a
per share basis is measured by dividing the after-tax income of these items by
the average number of shares outstanding in the relevant period. Management
will continue to disclose the impact of these items on its results because the
timing and extent of such items do not reflect or relate to the Company's
ongoing operating performance. Management evaluates the operating income of
its divisions before the effect of these items.
    Return on Sales - A measure indicating relative profitability of sales to
customers. It is defined as operating income (see above definition) divided by
sales, expressed as a percentage.

    
             CCL Industries Announces $25 Million Expansion Plan
                       for its Asian Label Operations
    

    Toronto, June 17, 2008 - CCL Industries Inc., a world leader in specialty
packaging solutions for the consumer products and healthcare industries,
announced today that it plans to invest $25 million over 2008 and 2009 to
expand its CCL Label operations in the rapidly developing Asian region. The
Company began doing business in Asia five years ago with its 2003 investment
in Bangkok, Thailand which has subsequently undergone two expansions. In 2006
and 2007 CCL invested in additional operations in Guangzhou and Hefei in
China. At the current pace, sales in Asia will reach approximately $40 million
in 2008.
    The Company announced that it will build four new greenfield plants and
also expand some of its existing facilities in the region. A second new plant
in Bangkok, Thailand will produce beverage and battery label products for
South East Asia and Australia. CCL will enter Vietnam with a new facility in
Ho Chi Minh City, focused on personal care products. A new start-up in Pune,
India will focus on personal care and healthcare customers and a new
greenfield site in Tianjin will become the Company's first healthcare plant in
China as well as produce labels for personal care customers. Investments will
also be made to expand the capability of the Hefei, China plant to supply home
and personal care products to global customers located in the important
Shanghai region. The Company's sales and technical centre in Japan will be
expanded to become a pilot manufacturing facility for personal care labels.
    Geoffrey Martin, President and CEO of CCL Industries said, "All of our
existing operations in Asia are now solidly profitable and we have formed an
excellent team of local managers who have ambition to grow. Emerging market
sales now represent approximately 17% of our Label business but we would like
to see that grow to 30% in the next three to five years to be more closely
aligned with the sales of our important global customers. This would require
us to more than double the size of our existing presence in Asia. We believe
the highly successful organic growth model that we have deployed in this
region should be continued, at least for our core markets and will provide
increased benefits to our customers and shareholders."

    With headquarters in Toronto, Canada, CCL Industries now employs
approximately 5,400 people and currently operates 55 production facilities in
North America, Europe, Latin America and Asia Pacific. CCL Label is the
world's largest converter of pressure sensitive and film materials and sells
to leading global customers in the consumer packaging, healthcare, and
consumer durable segments. CCL Container and CCL Tube produce aluminum cans,
bottles and plastic tubes for the consumer products industry in North America.

    Statements contained in this Press Release, other than statements of
historical facts, are forward-looking statements subject to a number of
uncertainties that could cause actual events or results to differ materially
from some statements made.





For further information:

For further information: Steve Lancaster, Executive Vice President and
Acting Chief Financial Officer, (416) 756-8517; For more details on CCL, visit
our web site - www.cclind.com

Organization Profile

CCL INDUSTRIES INC.

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