Avery Dennison Announces Intent to Undertake HiMEDS Exchange Offer in First Quarter

PASADENA, Calif. – Avery Dennison Corporation (NYSE:AVY) today announced that, in the first quarter of 2009, it intends to offer to exchange its 7.875% HiMEDS Units in the form of Corporate HiMEDS Units, $440 million aggregated stated amount, for shares of Avery Dennison common stock and other consideration. The Company expects the reduction in interest expense attributable to HiMEDS Units tendered in the exchange to partially offset the anticipated dilution in earnings per share related to the issuance of common stock in the exchange. Although the HiMEDS Units do not require mandatory settlement until November, 2010, the Company believes that taking the dilution now is appropriate, given the benefits from having lower leverage in today’s environment. Because participation in the exchange offer is entirely voluntary, the Company cannot estimate the extent to which holders of HiMEDS Units will participate in the offer, and as a result the number of shares that will be issued.

Details of the offer will be provided in an offer to exchange and related documents filed with the Securities and Exchange Commission as exhibits to Schedule TO, which holders of HiMEDS Units are advised to read when made available because they contain important information. Holders of HiMEDS Units may obtain documents Avery Dennison files with the Securities and Exchange Commission, including the Schedule TO and documents filed as exhibits thereto, free from the Securities and Exchange Commission’s Electronic Document Gathering and Retrieval System, which may be accessed at www.sec.gov, and the investor relations section of Avery Dennison’s website, which may be accessed at www.investors.averydennison.com. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any HiMEDS Units or shares of Avery Dennison common stock.

Avery Dennison is a recognized industry leader that develops innovative identification and decorative solutions for businesses and consumers worldwide. The Company’s products include pressure-sensitive labeling materials; graphics imaging media; retail apparel ticketing and branding systems; RFID inlays and tags; office products; specialty tapes; and a variety of specialized labels for automotive, industrial and durable goods applications. A FORTUNE 500 Company with sales of $6.7 billion in 2008, Avery Dennison is based in Pasadena, California and employs more than 36,000 employees in over 60 countries. For more information, visit www.averydennison.com.