Exhibit 99.1

FOR IMMEDIATE RELEASE

O-I REPORTS SECOND QUARTER 2011 RESULTS

Steps taken to improve disappointing operating performance

PERRYSBURG, Ohio (July 27, 2011) — Owens-Illinois, Inc. (NYSE: OI) today reported financial results for the second quarter ending June 30, 2011.

Summary

·      Earnings: O-I reported second quarter 2011 earnings from continuing operations attributable to the Company of $0.42 per share (diluted), compared to $0.79 per share (diluted) in the prior year. Adjusted net earnings (non-GAAP) were $0.59 per share, compared to $0.84 per share in the second quarter of 2010, and were in line with O-I’s updated business outlook provided on June 15, 2011.

·      Sales and Volume: Net revenue increased from the prior year as recent acquisitions and improving market conditions drove a more than 6 percent increase in tonnes shipped. Volumes improved across all key end-use categories. Sales also benefited from favorable foreign currency translation.

·      Operating Performance: Second quarter segment operating profit was $225 million, compared to $271 million in the prior year. The benefit of higher sales and shipment levels was more than offset by significant cost inflation and higher manufacturing costs, notably production and supply chain issues in North America. Furthermore, challenging market conditions in Australia and New Zealand required lower production levels. Remediation efforts are underway to address the challenges in both regions.

·      Free Cash Flow: O-I generated $97 million of free cash flow in the second quarter of 2011. O-I is adjusting down its previous 2011 free cash flow target of $300 million given potential restructuring costs in Australia, the need to rebuild inventory levels in North America to avoid future supply chain issues, and capital investments to expand capacity in South America. O-I now expects full year 2011 free cash flow of between $200 and $250 million.

·      Business Outlook: O-I expects third quarter 2011 adjusted earnings per share will improve from second quarter results, but will likely lag prior year third quarter adjusted earnings.

Second quarter net sales were $1.959 billion in 2011, up from $1.670 billion in the prior year quarter, primarily due to higher sales volume and favorable foreign currency translation effects.

Net earnings from continuing operations attributable to the Company in the second quarter of 2011 were $71 million, or $0.42 per share (diluted), compared with net earnings from continuing operations in the prior year of $132 million, or $0.79 per share (diluted). Exclusive of the items not representative of ongoing operations listed in Note 1, second quarter 2011 adjusted net earnings were $98 million, or $0.59 per share (diluted), compared with adjusted net earnings in the prior year second quarter of $140 million, or $0.84 per share (diluted).

Commenting on the Company’s second quarter, Chairman and Chief Executive Officer Al Stroucken said, “Despite higher sales across all end-use categories, our operating performance this quarter was clearly unacceptable. During the past three years, we have realigned our manufacturing footprint to improve production efficiency, and we have realized significant fixed cost savings as a result of these actions. However, we didn’t achieve our typical high standards for manufacturing excellence in North America during the second quarter. In addition, we faced challenging market demand in Australia and New Zealand, which contributed to lower production levels in Asia Pacific. We are responding with urgency and taking the necessary actions to address these issues, meet customer needs and maximize O-I’s long-term earnings power.”

Operational Highlights

O-I reported second quarter 2011 segment operating profit of $225 million, down from $271 million in 2010. Significantly higher manufacturing expense more than offset the benefit from higher shipment levels and favorable foreign currency translation. The year-over-year change in segment operating profit is summarized as follows:

Segment operating profit benefited $13 million from favorable foreign currency translation. Higher sales volume increased operating profit by $26 million, despite a $7 million impact from lower shipments in Australia and New Zealand. Global shipments (in tonnes) improved more than 6 percent from the prior year. Acquisitions completed in 2010 represented 5 percent of this volume growth and reflect new and expanding relationships with customers in emerging markets. The remaining increase was due to organic growth as favorable demand in Europe and South America more than offset lower volume in Australia and New Zealand. Future capacity expansion will be required in South America to support robust organic growth.

While average selling prices improved slightly from the prior year, this benefit was more than offset by a change in product mix. The net effect of price and product mix negatively impacted operating profit by $3 million.

Manufacturing costs increased $78 million from the prior year, driven mostly by $60 million of additional cost inflation. While earnings benefited $10 million from footprint restructuring conducted in North America during the prior year, production and supply chain issues in the region resulted in $26 million of unanticipated manufacturing and delivery costs. Weaker sales volumes in Australia and New Zealand required lower production levels, which impacted O-I’s Asia Pacific region segment profits by $10 million.

Higher Future Selling Prices to Help Offset Current Cost Inflation Pressures

O-I has incurred significant cost inflation in 2011 related to higher raw material, labor and energy prices.  Up to $180 million of higher costs were anticipated heading into the current year. But, as previously communicated, the rapid rise in European energy prices this year has added between $20 and $40 million of additional cost pressure. As a result, O-I’s full year cost inflation estimate remains between $200 and $220 million.

The Company has initiated an energy surcharge in Europe to help offset the impact of higher energy prices in that region. Surcharge negotiations are essentially complete and O-I anticipates $15 to $20 million of benefit in the second half of 2011. The Company expects to pass along the remaining impact of 2011 global cost inflation through higher selling prices in 2012.

Actions to Rectify North American Production and Supply Chain Issues

Significant manufacturing and supply chain issues in North America led to higher than expected manufacturing costs. O-I entered the seasonally strong second quarter with overall tight inventory levels in

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the region, and production issues during the quarter led to inventory shortages at certain locations. Consequently, out-of-pattern production was required to meet customer expectations resulting in production inefficiencies, higher freight costs and product loss during the second quarter. The Company has taken the following actions to resolve these issues:

·                  O-I has successfully restarted two previously idled furnaces, providing approximately 5 percent of additional production capacity. O-I is also leveraging its global footprint to shift inventory from other regions to support North America. Furthermore, O-I’s North American plants will run at high operating rates through the end of 2011. These actions will increase inventory levels, reduce out-of-pattern production and help meet customer demand.

·                  The Company is conducting thorough manufacturing audits of all its North American plants to identify and remediate any other potential production risks. O-I has also delayed its SAP implementation to avoid further near-term disruption to operations.

·                  O-I is enhancing its integrated production planning and forecasting capabilities in collaboration with its customers to improve the accuracy of supply chain requirements. This effort will be supported by a global change in the Company’s regional organization structure to improve communication across all functions affected by the production cycle. This new structure will provide better visibility and management of all costs associated with the manufacture and sale of glass containers.

Restructuring to Address Australia and New Zealand Market Challenges

In the second quarter of 2011, O-I faced increasingly difficult market conditions in Australia and New Zealand. The Australian dollar has continued to appreciate, reaching record levels against the U.S. dollar in the second quarter, which negatively impacted wine exports from that country. Beer consumption in Australia and New Zealand was also down as high interest and savings rates led to lower consumer disposable income. While O-I anticipated lower wine and beer bottle shipments, demand trends for these end uses deteriorated further during the course of the quarter leading to a nearly 20 percent decline in O-I’s shipments in these countries. In response to the worsening conditions, regional management reduced production to balance supply with lower demand, which resulted in unabsorbed manufacturing costs that were not anticipated entering the second quarter. In addition to continued temporary production curtailments, O-I is taking the following steps to improve long term profitability in Australia:

·                  Steve Bramlage has been named the new president of O-I’s Asia Pacific region.

·                  O-I is implementing a comprehensive restructuring plan in Australia to increase system flexibility and align its footprint to meet changing long term demand requirements. As a first step, the Company closed one machine line in Australia and a $4 million severance expense ($3 million after tax) was included as a Note 1 charge. To accommodate seasonal demand patterns, O-I will implement additional steps of its restructuring plan over the next several quarters. Initial estimates indicate the plan may result in up to $50 million of additional capital expenditures and severance costs. Cash costs may total up to $25 million in 2011. More refined estimates will be available by the end of the third quarter 2011.

Financial Highlights

The Company reported total debt of $4.340 billion and cash of $260 million at June 30, 2011. Net debt was $4.080 billion, an increase of $147 million from first quarter 2011. The increase in net debt primarily reflected $153 million of cash used for acquisitions, including the buyout of the minority partner interest in O-I’s southern Brazil operation; $52 million related to refinancing activities and dividends paid to noncontrolling interests; and $39 million of foreign currency translation. These additions to net debt were partially offset by $97 million of free cash flow. Available liquidity as of June 30, 2011, was $631 million under the Company’s global revolving credit facility.

In May, the Company announced a new $2 billion bank credit agreement. The new agreement, which matures in May 2016, is comprised of $1.1 billion in term loans and a $900 million revolving credit facility. Proceeds from borrowings under the new credit agreement were used to repay and terminate the previous credit agreement scheduled to mature in June 2012. With the term loan proceeds, as well as cash on hand, O-I also redeemed more than $700 million of higher cost 6.75 percent senior notes

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scheduled to mature in 2014. O-I expensed $24 million after tax for note repurchase premiums and the write-off of finance fees related to the repaid debt, both of which were reported as a Note 1 charge.

Net interest expense increased $16 million (excluding the Note 1 charge related to the repaid debt) from the prior year as a result of additional borrowings last year used to fund acquisitions. Corporate retained expense increased $1 million from the prior year, reflecting the net effect of $11 million of higher marketing and pension expenses and a $10 million reduction of long and short term management incentive compensation expense.

Asbestos-related cash payments during the second quarter of 2011 were $35 million, compared to $43 million in the second quarter of 2010. New lawsuits and claims filed during the first six months of 2011 were approximately 7 percent lower than the same period last year. The number of pending asbestos-related lawsuits and claims was approximately 5,700 as of June 30, 2011, down from approximately 5,900 at the end of 2010.

Business Outlook

Commenting on the Company’s outlook, Stroucken said, “We remain committed to our key strategic priorities of operational excellence, strategic and profitable growth, marketing glass, and innovation and technology. While all of these strategies are essential to our future success, we are refocusing our attention on operational excellence for the immediate future in light of recent challenges. We fully expect the actions we are taking in North America and Asia Pacific will strengthen our operating performance in those markets. As we focus on our core operations, we anticipate little additional acquisition activity during the second half of 2011.”

Stroucken continued, “Looking to the third quarter of 2011, earnings should benefit from higher shipment levels. Likewise, manufacturing costs are expected to improve over the course of the quarter as we address the challenges in North America and Asia Pacific. We expect third quarter 2011 adjusted earnings per share will improve from second quarter results, but earnings will likely lag prior year third quarter adjusted earnings as we focus on fully restoring operating performance levels. We are adjusting our previous 2011 free cash flow target of $300 million given potential restructuring costs in Australia, the need to rebuild inventory levels in North America to avoid future supply chain issues, and capital investments to expand capacity in South America. We now expect full year 2011 free cash flow of between $200 and $250 million.”

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Note 1:

The table below describes the items that management considers not representative of ongoing operations.

Company Profile

Owens-Illinois, Inc. (NYSE: OI) is the world’s largest glass container manufacturer and preferred partner for many of the world’s leading food and beverage brands. With revenues of $6.6 billion in 2010, the Company is headquartered in Perrysburg, Ohio, USA, and employs more than 24,000 people at 81 plants in 21 countries. O-I delivers safe, effective and sustainable glass packaging solutions to a growing global marketplace. For more information, visit www.o-i.com.

Regulation G

The information presented above regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally accepted accounting principles (GAAP). It should not be construed as an alternative to the reported results determined in accordance with GAAP. Management has included this non-GAAP information to assist in understanding the comparability of results of ongoing operations. Management uses this non-GAAP information principally for internal reporting, forecasting, budgeting and calculating bonus payments. Further, the information presented above regarding free cash flow does not conform to GAAP. Management defines free cash flow as cash provided by operating activities less capital spending (both as determined in accordance with GAAP) and has included this non-GAAP information to assist in understanding the comparability of cash flows. Management uses this non-GAAP information principally for internal reporting, forecasting and budgeting. Management believes that the non-GAAP presentation allows the board of directors, management, investors and analysts to better understand the Company’s financial performance in relationship to core operating results and the business outlook.

The Company routinely posts important information on its Web site – www.o-i.com/investorrelations.

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Forward Looking Statements

This news release contains “forward looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Forward looking statements reflect the Company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. It is possible the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) foreign currency fluctuations relative to the U.S. dollar, (2) changes in capital availability or cost, including interest rate fluctuations, (3) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to the economic conditions in Australia and New Zealand, the expropriation of the Company’s operations in Venezuela, disruptions in capital markets, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, and changes in tax rates and laws, (4) consumer preferences for alternative forms of packaging, (5) fluctuations in raw material and labor costs, (6) availability of raw materials, (7) costs and availability of energy, including natural gas prices, (8) transportation costs, (9) the ability of the Company to raise selling prices commensurate with energy and other cost increases, (10) consolidation among competitors and customers, (11) the ability of the Company to acquire businesses and expand plants, integrate operations of acquired businesses and achieve expected synergies, (12) unanticipated expenditures with respect to environmental, safety and health laws, (13) the performance by customers of their obligations under purchase agreements, (14) the Company’s ability to further develop its sales, marketing and product development capabilities, (15) the Company’s ability to resolve its production and supply chain issues in North America, (16) the Company’s success in implementing necessary restructuring plans, and (17) the timing and occurrence of events which are beyond the control of the Company, including any expropriation of the Company’s operations, floods and other natural disasters, and events related to asbestos-related claims. It is not possible to foresee or identify all such factors. Any forward looking statements in this document are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the Company continually reviews trends and uncertainties affecting the Company’s results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward looking statements contained in this news release.

Conference Call Scheduled for July 28, 2011

O-I CEO Al Stroucken and CFO Ed White will conduct a conference call to discuss the Company’s latest results on Thursday, July 28, 2011, at 8:30 a.m., Eastern Time. A live webcast of the conference call, including presentation materials, will be available on the O-I Web site, www.o-i.com/investorrelations, in the Presentations & Webcast section.

The conference call also may be accessed by dialing 888-733-1701 (U.S. and Canada) or 706-634-4943 (international) by 8:20 a.m., Eastern Time, on July 28. Ask for the O-I conference call. A replay of the call will be available on the O-I Web site, www.o-i.com/investorrelations, for 90 days following the call.

Copies of O-I news releases are available on the O-I Web site at www.o-i.com or at www.prnewswire.com.

O-I’s third-quarter 2011 earnings conference call is currently scheduled for Thursday, October 27, 2011, at 8:30 a.m., Eastern Time.

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OWENS-ILLINOIS, INC.

Condensed Consolidated Results of Operations

(Dollars in millions, except per share amounts)

OWENS-ILLINOIS, INC.

Condensed Consolidated Balance Sheets

(Dollars in millions)

OWENS-ILLINOIS, INC.

Condensed Consolidated Cash Flows

(Dollars in millions)

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Consolidated Supplemental Financial Data

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The following notes relate to Segment Operating Profit: