Exhibit 99.1

FOR IMMEDIATE RELEASE

O-I REPORTS FULL YEAR AND FOURTH QUARTER 2010 RESULTS

Expansion in emerging markets positions O-I well for future profitable growth

2011 free cash flow expected to approximate $300 million

PERRYSBURG, Ohio (January 26, 2011) — Owens-Illinois, Inc. (NYSE: OI) today reported financial results for the full year and fourth quarter ending December 31, 2010.

Highlights:

Full Year 2010: O-I reported full-year 2010 earnings from continuing operations attributable to the Company of $1.55 per share (diluted), compared to $0.65 per share (diluted) in 2009. Adjusted net earnings (non-GAAP) were $2.60 per share, compared to $2.61 per share in 2009.

·                  Segment Operating Profit: Strong organic growth in South America, acquisitions in emerging markets and improved manufacturing productivity on a global basis drove a $73 million increase in segment operating profit compared to 2009. Non-operating costs increased, including higher pension and net interest expense.

·                  Acquisitions Drive Future Profitable Growth: O-I added 10 plants in rapidly growing emerging markets through acquisitions and joint ventures. The Company also built three new furnaces to support future growth.

Fourth Quarter 2010: O-I reported a fourth-quarter 2010 loss from continuing operations attributable to the Company of $0.51 per share, compared to a $1.01 per share loss in the prior year. These results include a non-cash charge for the annual adjustment of the Company’s asbestos-related liability. Adjusted net earnings (non-GAAP) were $0.45 per share, compared to $0.43 per share in the fourth quarter of 2009.

·                  Improved Operating Performance: Higher capacity utilization drove a $47 million improvement in segment operating profit from the prior year fourth quarter. Price and shipment levels were both flat with the prior year. Higher segment results were partially offset by additional pension and net interest expense.

·                  Strategic Events: O-I purchased three plants in China and began production at a new furnace in New Zealand during the fourth quarter. Due to the expropriation of the assets of its Venezuelan operations, the Company has reflected this business as discontinued operations.

Full Year 2010:

Full-year 2010 net sales from continuing operations were $6.63 billion, compared to $6.65 billion in 2009.

Earnings from continuing operations attributable to the Company for full year 2010 were $258 million, or $1.55 per share (diluted), compared to $110 million, or $0.65 per share (diluted), in the prior year. Exclusive of the items listed in Note 1, full-year 2010 adjusted net earnings were $434 million, or $2.60 per share (diluted) compared with $444 million, or $2.61 per share (diluted) in 2009. A description of items that management considers not representative of ongoing operations and a reconciliation of the GAAP to non-GAAP earnings and earnings per share can be found in Note 1 provided below and in charts on the Company’s Web site, www.o-i.com/investorrelations.

Segment operating profit in 2010 was $964 million, compared to $891 million in 2009, and included a $16 million benefit from favorable currency translation. Price and product mix were consistent with the prior year, while total shipments, in tonnes, declined 1 percent. Excluding the net effect of additional volume from acquisitions and volume loss tied to contract renegotiations effective in 2010, shipments were up approximately 2 percent from 2009, which is more reflective of underlying consumer trends. Manufacturing and delivery costs declined $38 million from 2009, mostly due to benefits from the

Company’s strategic footprint alignment initiative and despite modest cost inflation. Non-operational costs increased from the prior year, primarily the result of additional year-over-year pension and net interest expense. Higher net interest expense reflected additional debt issued to fund various acquisitions during 2010, which are expected to be accretive to earnings in 2011.

Commenting on full-year 2010 results, Chairman and Chief Executive Officer Al Stroucken said, “Our improved segment operating profit over 2009 reflected excellent profitable growth in South America and the success of our strategic footprint alignment efforts. During 2010, we acquired 10 new plants across South America and Asia Pacific, including a joint venture in Southeast Asia. We also added three new furnaces, one each in Argentina, Peru and New Zealand. Collectively, these investments expand our access to new markets and customers, and they position us well for future growth.”

Fourth Quarter 2010:

Fourth-quarter net sales from continuing operations were $1.73 billion in 2010, flat with the prior year.

The loss from continuing operations attributable to the Company in the fourth quarter of 2010 was $83 million, or $0.51 per share, compared with a loss from continuing operations, in the prior year, of $169 million, or $1.01 per share. Exclusive of the items not representative of ongoing operations listed in Note 1, fourth-quarter 2010 adjusted net earnings were $76 million, or $0.45 per share (diluted), compared to adjusted net earnings in the prior year fourth quarter of $74 million, or $0.43 per share (diluted).

O-I reported fourth-quarter 2010 segment operating profit of $221 million, up from $174 million in the prior year. Price and product mix, as well as total shipment levels, in tonnes, were flat with the fourth quarter of 2009. Manufacturing and delivery costs decreased by $35 million from the prior year, primarily due to higher operating rates. Non-operational costs increased from fourth quarter 2009.

Consistent with the Company’s strategic growth initiative to expand in rapidly growing emerging markets, O-I acquired three plants in China during the fourth quarter, including two near Beijing and one near Guangzhou. The Company also began production at its new furnace in New Zealand.

Financial Highlights:

The Company reported total debt of $4.278 billion and cash of $640 million at December 31, 2010. As a result, net debt was $3.638 billion, an increase of $785 million from year-end 2009. The increase in net debt primarily reflected the funding of several acquisitions in 2010 and approximately $200 million paid to repurchase six million shares of O-I stock. These factors were partially offset by $88 million of foreign currency translation and $100 million of free cash flow from continuing operations. In the fourth quarter of 2010, the Company repaid approximately $70 million of debt due in 2011. Available liquidity on December 31, 2010, was $732 million under the Company’s global revolving credit facility.

O-I has deemed the disposal of its expropriated Venezuelan operations as complete effective December 31, 2010. As a result, the Venezuelan business has been reflected in the Company’s financial statements as discontinued operations, and the Company has taken a one-time charge of approximately $329 million to write-off the Venezuelan net assets and the related cumulative Venezuelan currency translation adjustments recorded in prior years. The Company continues to negotiate with the Venezuelan government with respect to certain aspects of the expropriation, including compensation.

Asbestos-related cash payments during the full year and fourth quarter of 2010 were $179 million and $65 million, respectively. These payments compare with $190 million and $68 million for the same periods last year. New lawsuits and claims filed during full year 2010 were approximately 45 percent lower than in 2009. The number of pending asbestos-related lawsuits and claims approximated 5,900 as of December 31, 2010, compared with approximately 6,900 at year end 2009.

2

The Company conducted its annual comprehensive review of asbestos-related liabilities in the fourth quarter. As a result of that review, O-I recorded a non-cash charge of $170 million (before and after tax amount) compared to the 2009 charge of $180 million (before and after tax amount). The accrued balance for future asbestos-related costs as of December 31, 2010, was $476 million.

Business Outlook:

Commenting on the Company’s outlook for full year 2011, Stroucken said, “We expect improved financial performance and free cash flow generation in 2011. Shipments should increase due to organic growth and benefits from recent acquisitions. To support future profitable growth, we will invest in our sales, marketing and innovation capabilities. Also, higher selling prices will partially offset additional cost inflation. As capital investments and restructuring payments will decline significantly from 2010 levels, we expect free cash flow will approximate $300 million in 2011.”

3

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.

4

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.

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. 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 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 the tax rates and laws, (4) consumer preferences for alternative forms of packaging, (5) fluctuation in raw material and labor costs, (6) availability of raw materials, (7) costs and availability of energy, (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, and (15) the timing and occurrence of events which are beyond the control of the Company, including any expropriation of the Company’s operations and events related to asbestos-related claims. It is not possible to foresee or identify all such factors. Any forward-looking statements in this news release 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 January 27, 2011
O-I CEO Al Stroucken and CFO Ed White will conduct a conference call to discuss the Company’s latest results on Thursday, January 27, 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.

5

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 January 27. 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 first-quarter 2011 earnings conference call is currently scheduled for Thursday, April 28, 2011, at 8:30 a.m., Eastern Time.

# # #

6

OWENS-ILLINOIS, INC.

Condensed Consolidated Results of Operations (a)

(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)

OWENS-ILLINOIS, INC.

Consolidated Supplemental Financial Data

(Dollars in millions)

The following notes relate to Segment Operating Profit: