Libbey Inc. Announces Second Quarter Results: Improving Trends Continue

- Net Income of $2.7 Million, or $0.18 Per Diluted Share

TOLEDO, Ohio, July 30 /PRNewswire-FirstCall/ -- Libbey Inc. (OTC Bulletin
Board: LYBI) announced today that net sales were $195.8 million in the second
quarter of 2009, compared to $224.8 million in the prior-year second quarter.
Libbey reported net income of $2.7 million, or $0.18 per diluted share, for
the quarter-ended June 30, 2009, compared to a net loss of $2.1 million, or
$0.14 per diluted share, in the prior-year second quarter.

Working Capital and Liquidity

As of June 30, 2009, working capital, defined as inventories and accounts
receivable less accounts payable, decreased by $10.5 million during the
quarter and by $24.3 million year-to-date in 2009 from $206.9 million at
December 31, 2008, to $182.6 million at June 30, 2009. This is primarily the
result of significantly lower inventories as the Company continues to be
successful in its cash management efforts. Working capital as a percentage of
last twelve months net sales was 24.3 percent, eclipsing the first quarter of
2009 as the lowest percentage in over ten years.

Free cash flow, as detailed in the attached Table 3, was $20.1 million,
compared to a use of $3.2 million in the second quarter of 2008. The primary
contributors were the significant reduction in inventories and lower capital
expenditures. For the first six months of 2009, free cash flow as detailed in
Table 3, was $29.6 million, compared to a use of $40.6 million during the
first six months of 2008.

Libbey reported that it had available capacity of $56.6 million under its
Asset Based Loan (ABL) credit facility as of June 30, 2009, and cash on hand
of $24.1 million. This compares to availability of $49.0 million and cash on
hand of $16.5 million at March 31, 2009.

John F. Meier, chairman and chief executive officer, commenting on the quarter
said, "We continued our success in cash flow generation and inventory
reduction for the quarter, resulting in improved liquidity." Mr. Meier added,
"Our U.S. retail shipments again led the way during the second quarter, as
sales in this channel increased almost seven percent compared to the second
quarter of 2008. Given overall increases in demand, primarily in North
America, we have increased our scheduled capacity utilization in all three
North American glass factories for the third quarter of 2009."

Second Quarter Results

For the quarter-ended June 30, 2009, sales decreased 12.9 percent to $195.8
million from $224.8 million in the year-ago quarter. North American Glass
sales decreased 11.1 percent to $137.7 million (see Table 4) from $155.0
million in the year-ago quarter. The decrease in sales was attributable to a
27.9 percent decrease in sales to Crisa customers (15.1 percent excluding the
currency impact of the Mexican peso) and a 5.5 percent decline in sales to
U.S. foodservice customers, partially offset by approximately 7.0 percent
increase in shipments to retail glassware customers. North American Other
sales decreased 19.2 percent, as shipments of Syracuse China products
decreased approximately 34.0 percent and sales of Traex and World Tableware
products decreased approximately 27.0 percent and 8.7 percent, respectively.
International sales decreased 17.3 percent as the result of increased sales of
4.6 percent to customers of Libbey China, which were more than offset by lower
sales at Royal Leerdam and Crisal of 17.3 percent and 20.5 percent,
respectively. Excluding the negative currency impact, international sales
decreased approximately 7.9 percent.

The Company reported income from operations of $11.5 million during the
quarter, compared to income from operations of $18.7 million in the year-ago
quarter. Normalized income from operations was $12.0 million during the
quarter, as detailed in Table 1. Factors contributing to the decrease in
normalized income from operations were a $5.6 million negative exchange rate
impact (primarily in Mexico), lower sales and lower production activity
partially offset by lower spending on labor, raw materials, packaging,
repairs, natural gas, electricity and distribution costs.

Earnings before interest and taxes (EBIT) were $14.2 million, compared to
$19.3 million in the year-ago quarter. Normalized EBIT during the quarter, as
detailed in Table 4, was $14.7 million. Normalized EBIT was $11.9 million for
North American Glass, compared with $14.9 million in the second quarter of
2008, and the decrease was a result of the lower production activity in all
locations and lower sales. North American Other reported normalized EBIT of
$3.7 million for the second quarter of 2009, compared to $3.6 million in the
second quarter of 2008. The International segment reported a normalized EBIT
loss of $0.9 million, compared to normalized EBIT of $0.7 million in the
year-ago quarter. The decrease in EBIT was primarily related to lower
international sales and lower capacity utilization.

Libbey reported that earnings before interest, taxes, depreciation and
amortization (EBITDA) (see Table 2) were $24.8 million in the second quarter
of 2009 and normalized EBITDA was $25.2 million, compared to EBITDA (and
normalized EBITDA) of $30.5 million in the year-ago quarter.

As a result of lower interest rates on slightly higher debt, interest expense
decreased $0.1 million compared with the year-ago period.

The effective tax rate decreased to 181.1 percent for the quarter, compared to
225.9 percent in the year-ago quarter. The Company's effective tax rate for
the quarter benefited by $3.6 million due to required intra-period tax
allocations between loss from continuing operations and other comprehensive
income in the U.S. and a $1.5 benefit related to the completion of a U.S.
federal income tax examination. The effective tax rate was also influenced by
valuation allowances, changes in the mix of earnings with differing statutory
rates and tax planning structures. Libbey reported net income of $2.7
million, or $0.18 per diluted share, for the second quarter of 2009, compared
to a net loss of $2.1 million, or a loss of $0.14 per diluted share, in the
second quarter of 2008.

Six-Month Results

For the six months ended June 30, 2009, sales decreased 14.2 percent to $353.7
million from $412.1 million in the year-ago period. North American Glass
sales decreased 12.7 percent to $246.5 million (see Table 4) from $282.5
million in the year-ago period. The lower sales were attributable to an
approximate 28.5 percent decrease in Crisa's sales (15.5 percent excluding the
currency impact of the Mexican peso) and a 5.9 percent decrease in sales to
foodservice glassware customers in the U.S. and Canada. With a solid 6.9
percent increase in sales during the second quarter, the U.S. retail channel
delivered sales essentially equal to the all-time record retail sales
performance during the first six months of 2008. North American Other sales
decreased 19.4 percent as sales of Syracuse China, World Tableware and Traex
were all lower than the first six months of 2008. International sales
decreased 18.9 percent as a result of significantly decreased shipments to
customers of Royal Leerdam and Crisal and unfavorable currency impact on
European sales. Libbey China sales increased slightly for the first half of
2009 compared to the first six months of 2008. Excluding the currency
impact, international sales decreased approximately 9.4 percent.

The Company reported a loss from operations of $0.6 million during the first
six months of 2009, compared to income from operations of $28.2 million in the
year-ago period. Normalized income from operations was $4.6 million for the
first half of 2009 as detailed in Table 1. Factors contributing to the
decrease in normalized income from operations were a $9.7 million negative
exchange rate impact (primarily in Mexico and Europe), reduced capacity
utilization, reflecting our effort to control inventories and generate cash,
and lower sales. These factors were partially offset by lower spending on
labor, raw materials, packaging, repairs, natural gas, electricity and
distribution costs.

EBIT was $2.2 million in the first six months of 2009, compared to $29.5
million in the first six months of 2008. Normalized EBIT for the first six
months of 2009, as detailed in Table 4, was $7.5 million. Normalized EBIT was
$5.8 million during the first half of 2009, compared to normalized EBIT of
$22.0 million in the first six months of 2008 for North American Glass, the
decrease is a result of lower sales and decreased operating activity in U.S.
and Mexican operations. North American Other reported normalized EBIT for the
first half of 2009 of $5.0 million, compared to $7.5 million in the year-ago
period, primarily as a result of the lower sales. The International segment
reported a normalized EBIT loss of $3.3 million, compared to normalized EBIT
of $0.1 million in the first six months of 2008. This performance was
primarily related to decreased sales and lower capacity utilization.

Libbey reported that normalized EBITDA, as detailed in Table 2, was $29.1
million in the first six months of 2009, compared to EBITDA (and normalized
EBITDA) of $52.1 million in the year-ago six-month period.

As a result of lower interest rates partially offset by slightly higher debt,
interest expense decreased $0.1 million compared to the first half of 2008.

The effective tax rate was 22.5 percent for the first six months of 2009,
compared to a negative 6.9 percent in the first half of 2008. The Company's
effective tax rate for the first six months benefited by $3.9 million due to
required intra-period tax allocations between loss from continuing operations
and other comprehensive income in the U.S. and a $1.5 benefit related to the
completion of a U.S. federal income tax examination. The effective tax rate
was also influenced by valuation allowances, changes in the mix of earnings
with differing statutory rates, and tax planning structures. Libbey reported
a net loss of $25.2 million for the first six months of 2009, or a loss of
$1.70 per diluted share, compared to a net loss of $5.6 million, or $0.38 per
diluted share, in the first half of 2008.

Webcast Information

Libbey will hold a conference call for investors on Thursday, July 30, 2009,
at 11 a.m. Eastern Daylight Time. The conference call will be simulcast live
on the Internet and is accessible from the Investor Relations section of
www.libbey.com. To listen to the call, please go to the website at least 10
minutes early to register, download and install any necessary software. A
replay will be available for 30 days after the conclusion of the call.

This press release includes forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Such statements only
reflect the Company's best assessment at this time and are indicated by words
or phrases such as "goal," "expects," " believes," "will," "estimates,"
"anticipates," or similar phrases. Investors are cautioned that
forward-looking statements involve risks and uncertainty, that actual results
may differ materially from such statements, and that investors should not
place undue reliance on such statements. These forward-looking statements may
be affected by the risks and uncertainties in the Company's business. This
information is qualified in its entirety by cautionary statements and risk
factor disclosures contained in the Company's Securities and Exchange
Commission filings, including the Company's report on Form 10-K filed with the
Commission on March 16, 2009. Important factors potentially affecting
performance include but are not limited to increased competition from foreign
suppliers endeavoring to sell glass tableware in the United States and Mexico;
the impact of lower duties for imported products; global economic conditions
and the related impact on consumer spending levels; major slowdowns in the
retail, travel or entertainment industries in the United States, Canada,
Mexico, Western Europe and Asia, caused by terrorist attacks, pandemics or
otherwise; significant increases in per-unit costs for natural gas,
electricity, corrugated packaging, and other purchased materials; higher
indebtedness related to the Crisa acquisition; higher interest rates that
increase the Company's borrowing costs or volatility in the financial markets
that could constrain liquidity and credit availability; protracted work
stoppages related to collective bargaining agreements; increases in expense
associated with higher medical costs, increased pension expense associated
with lower returns on pension investments and increased pension obligations;
devaluations and other major currency fluctuations relative to the U.S. dollar
and the Euro that could reduce the cost competitiveness of the Company's
products compared to foreign competition; the effect of high inflation in
Mexico and exchange rate changes to the value of the Mexican peso and the
earnings and cash flow of Crisa, expressed under U.S. GAAP; the inability to
achieve savings and profit improvements at targeted levels in the Company's
operations or within the intended time periods; and whether the Company
completes any significant acquisition and whether such acquisitions can
operate profitably. Any forward-looking statements speak only as of the date
of this press release, and the Company assumes no obligation to update or
revise any forward-looking statement to reflect events or circumstances
arising after the date of this press release.

Libbey Inc.:
-- is the largest manufacturer of glass tableware in the western
hemisphere
and one of the largest glass tableware manufacturers in the world;
-- is expanding its international presence with facilities in China,
Mexico, the Netherlands and Portugal;
-- is the leading manufacturer of tabletop products for the U.S.
foodservice industry; and

-- supplies products to foodservice, retail, industrial and
business-to-business customers in over 100 countries.

Based in Toledo, Ohio, since 1888, Libbey operates glass tableware
manufacturing plants in the United States in Louisiana and Ohio, as well as in
Mexico, China, Portugal and the Netherlands. Its Crisa subsidiary, located in
Monterrey, Mexico, is the leading producer of glass tableware in Mexico and
Latin America. Its Royal Leerdam subsidiary, located in Leerdam, Netherlands,
is among the world leaders in producing and selling glass stemware to retail,
foodservice and industrial clients. Its Crisal subsidiary, located in
Portugal, provides an expanded presence in Europe. Its Syracuse China
subsidiary designs and distributes an extensive line of high-quality ceramic
dinnerware, principally for foodservice establishments in the United States.
Its World Tableware subsidiary imports and sells a full-line of metal flatware
and holloware and an assortment of ceramic dinnerware and other tabletop items
principally for foodservice establishments in the United States. Its Traex
subsidiary, located in Wisconsin, designs, manufactures and distributes an
extensive line of plastic items for the foodservice industry. In 2008, Libbey
Inc.'s net sales totaled $810.2 million.

LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts)
(unaudited)

Three Months Ended June 30,
---------------------------
2009 2008
---- ----
Net sales $195,826 $224,828
Freight billed
to customers 399 615
--- ---
Total revenues 196,225 225,443

Cost of sales (1) 161,942 183,275
------- -------
Gross profit 34,283 42,168

Selling, general and
administrative expenses 22,514 23,451
Special charges (1) 278 -
--- -
Income from operations 11,491 18,717
Other income (1) 2,758 586
----- ---

Earnings before interest
and income taxes 14,249 19,303

Interest expense 17,532 17,620
------ ------

(Loss) income before
income taxes (3,283) 1,683

(Benefit from)provision
for income taxes (5,947) 3,802
------ -----

Net income (loss) $2,664 $(2,119)
====== =======

Net income (loss) per share:
Basic $0.18 $(0.14)
===== ======
Diluted $0.18 $(0.14)
===== ======

Weighted average shares:
Outstanding 14,882 14,645
====== ======
Diluted 15,151 14,645
====== ======

(1) Refer to Table 1 for Special Charges detail.

LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts)
(unaudited)

Six Months Ended June 30,
-------------------------
2009 2008
---- ----
Net sales $353,679 $412,104
Freight billed
to customers 744 1,283
--- -----
Total revenues 354,423 413,387

Cost of sales (1) 309,424 340,882
------- -------
Gross profit 44,999 72,505

Selling, general and
administrative expenses 44,888 44,310
Special charges (1) 674 -
--- -
(Loss) income from
operations (563) 28,195
Other income (1) 2,721 1,339
----- -----

Earnings Before interest
and income taxes 2,158 29,534

Interest expense 34,711 34,771
------ ------

Loss before income
taxes (32,553) (5,237)

(Benefit from) provision
for income taxes (7,324) 359
------ ---

Net loss $(25,229) $(5,596)
======== =======

Net loss per share:
Basic $(1.70) $(0.38)
====== ======
Diluted $(1.70) $(0.38)
====== ======

Weighted average shares:
Outstanding 14,812 14,612
====== ======
Diluted 14,812 14,612
====== ======

(1) Refer to Table 1 for Special Charges detail.

LIBBEY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

June 30, 2009 December 31, 2008
------------- -----------------
(unaudited)
ASSETS

Cash $24,082 $13,304
Accounts receivable - net 91,252 76,072
Inventories - net 145,798 185,242
Other current assets 12,397 17,167
------ ------
Total current assets 273,529 291,785

Pension asset 9,640 9,351

Goodwill and purchased
intangibles - net 190,225 192,857

Property, plant and
equipment - net 302,116 314,847

Other assets 11,896 12,714
------ ------

Total assets $787,406 $821,554
======== ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable $1,336 $3,284
Accounts payable 54,485 54,428
Accrued liabilities 68,426 62,272
Pension liability
(current portion) 1,778 1,778
Nonpension postretirement
benefits (current portion) 4,684 4,684
Other current liabilities 17,158 23,463
Long-term debt due within
one year 9,987 1,117
----- -----
Total current liabilities 157,854 151,026

Long-term debt 531,709 545,856
Pension liability 100,830 109,505
Nonpension postretirement
benefits 58,537 57,197
Other liabilities 12,951 15,859
------ ------
Total liabilities 861,881 879,443

Common stock, treasury
stock, capital in excess
of par value and warrants 214,963 203,051
Retained deficit (180,605) (145,154)
Accumulated other
comprehensive loss (108,833) (115,786)
-------- --------
Total shareholders'
equity (74,475) (57,889)
------- -------

Total liabilities and
shareholders' equity $787,406 $821,554
======== ========

LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)
(unaudited)

Three Months Ended June 30,
---------------------------
2009 2008
---- ----
Operating activities
Net income (loss) $2,664 $(2,119)

Adjustments to reconcile
net income (loss) to net
cash provided by
operating activities:
Depreciation and
amortization 10,518 11,238
Loss (gain) on
asset sales 23 (117)
Change in accounts
receivable (16,007) (17,230)
Change in inventories 26,962 5,976
Change in accounts
payable 2,156 3,986
Restructuring charges (2,301) -
Pay-in-kind interest 11,916 10,216
Pension & nonpension
postretirement 194 (1,008)
Accrued interest and
amortization of discounts,
warrants and finance
fees (13,129) (13,785)
Accrued liabilities &
Prepaid expenses 10,104 2,509
Income taxes (6,674) 6,347
Other operating activities (1,720) (933)
------ ----
Net cash provided by
Operating activities 24,706 5,080

Investing activities
Additions to property,
plant and equipment (4,610) (8,260)
Proceeds from asset sales
and other 21 5
-- -
Net cash used in investing
activities (4,589) (8,255)

Financing activities
Net (repayments) borrowings (12,809) 13,914
Dividends - (365)
- ----
Net cash (used in) provided
by financing activities (12,809) 13,549

Effect of exchange rate
Fluctuations on cash 311 (93)
--- ---

Increase in cash 7,619 10,281

Cash at beginning of
period 16,463 7,602
------ -----

Cash at end of period $24,082 $17,883
======= =======

LIBBEY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)
(unaudited)

Six Months Ended June 30,
-------------------------
2009 2008
---- ----

Operating activities
Net loss $(25,229) $(5,596)

Adjustments to reconcile net loss to net
cash provided by (used in)
operating activities:

Depreciation and amortization 22,246 22,534
Loss (gain) on asset sales 32 (124)
Change in accounts receivable (15,597) (17,460)
Change in inventories 38,246 (5,044)
Change in accounts payable 113 (5,912)
Restructuring charges (751) -
Pay-in-kind interest 11,916 10,216
Pension & nonpension postretirement 3,165 (730)
Payable to Vitro - (19,575)
Accrued interest and amortization
of discounts, warrants and
finance fees 1,551 1,960
Accrued liabilities &
prepaid expenses 12,784 (2,565)
Income taxes (8,637) 761
Other operating activities (749) (1,524)
---- ------
Net cash provided by
(used in) operating activities 39,090 (23,059)

Investing activities
Additions to property, plant and
equipment (9,550) (17,612)
Proceeds from asset sales and other 88 46

Net cash used in investing activities (9,462) (17,566)

Financing activities
Net (repayments) borrowings (18,812) 22,509
Dividends - (729)
- ----
Net cash (used in) provided by
financing activities (18,812) 21,780

Effect of exchange rate fluctuations
on cash (38) 189
--- ---

Increase (decrease) in cash 10,778 (18,656)

Cash at beginning of period 13,304 36,539
------ ------

Cash at end of period $24,082 $17,883
======= =======

In accordance with the SEC's Regulation G, tables 1, 2, 3 and 4 provide
non-GAAP measures used in this earnings release and a reconciliation to
the most closely related Generally Accepted Accounting Principle (GAAP)
measure. Libbey believes that providing supplemental non-GAAP financial
information is useful to investors in understanding Libbey's core business
and trends. In addition, it is the basis on which Libbey's management
assesses performance. Although Libbey believes that the non-GAAP
financial measures presented enhance investors' understanding of Libbey's
business and performance, these non-GAAP measures should not be considered
an alternative to GAAP.

Table 1
Reconciliation of "As Reported" results to "Normalized" results
(Dollars in thousands, except per-share amounts)
(unaudited)

Three Months Ended June 30,
---------------------------
2009 2008
-------------------------------- -----------
As Special As Reported
Reported Charges Normalized & Normalized
-------- -------- ----------- -----------

Net sales $195,826 $- $195,826 $224,828
Freight billed to
customers 399 - 399 615
-------- -------- ----------- -----------
Total revenues 196,225 - 196,225 225,443

Cost of sales 161,942 (2) 161,944 183,275
-------- -------- ----------- -----------
Gross profit 34,283 2 34,281 42,168

Selling, general and
administrative expenses 22,514 200 22,314 23,451
Restructuring charges 278 278 - -
-------- -------- ----------- -----------
Income (loss) from
operations 11,491 (476) 11,967 18,717
Other income (expense) 2,758 43 2,715 586
-------- -------- ----------- -----------
Earnings before interest
and income taxes 14,249 (433) 14,682 19,303

Interest expense 17,532 - 17,532 17,620
-------- -------- ----------- -----------
(Loss) income before
income taxes (3,283) (433) (2,850) 1,683

(Benefit from) provision
for income taxes (5,947) - (5,947) 3,802
-------- -------- ----------- -----------

Net income (loss) $2,664 $(433) $3,097 $(2,119)
======== ======== =========== ===========

Net income (loss)
per share:
Basic $0.18 $(0.03) $0.21 $(0.14)
======== ======== =========== ===========
Diluted $0.18 $(0.03) $0.20 $(0.14)
======== ======== =========== ===========
Weighted average shares:
Outstanding 14,882 14,645
======== ===========
Diluted 15,151 14,645
======== ===========

Six Months Ended June 30,
---------------------------
2009 2008
-------------------------------- -----------
As Special As Reported
Reported Charges Normalized & Normalized
-------- -------- ----------- -----------

Net sales $353,679 $- $353,679 $412,104
Freight billed to
customers 744 - 744 1,283
-------- -------- ---------- -----------
Total revenues 354,423 - 354,423 413,387

Cost of sales 309,424 1,821 307,603 340,882
-------- -------- ----------- -----------
Gross profit 44,999 (1,821) 46,820 72,505

Selling, general and
administrative expenses 44,888 2,700 42,188 44,310
Restructuring charges 674 674 - -
-------- -------- --------- -----------
Income (loss) from
operations (563) (5,195) 4,632 28,195
Other income (expense) 2,721 (186) 2,907 1,339
-------- -------- --------- -----------
Earnings before interest
and income taxes 2,158 (5,381) 7,539 29,534

Interest expense 34,711 - 34,711 34,771
-------- -------- --------- -----------

(Loss) income before
income taxes (32,553) (5,381) (27,172) (5,237)

(Benefit from) provision
for income taxes (7,324) - (7,324) 359
-------- -------- --------- -----------

Net income (loss) $(25,229) $(5,381) $(19,848) $(5,596)
======== ======== ========== ===========

Net income (loss) per
share:
Basic $(1.70) $(0.36) $(1.34) $(0.38)
======== ======== ========== ===========
Diluted $(1.70) $(0.36) $(1.34) $(0.38)
======== ======== ========== ===========

Weighted average shares:
Outstanding 14,812 14,612
======== ===========
Diluted 14,812 14,612
======== ===========

Three Months Ended Six Months Ended
June 30, 2009 June 30, 2009
------------------------ ------------------------
Pension Pension
Special Settle- Restruct- Total Settle- Restruct- Total
Charges ment uring Special ment uring Special
Detail Charge Charges Charges Charge Charges Charges
------- ------------------------- --------------------------
Cost of sales $- $(2) $(2) $- $1,821 $1,821

SG&A 200 - 200 2,700 - 2,700

Restructuring
charges - 278 278 - 674 674

Other expense - (43) (43) - 186 186
------------------------- --------------------------

Total $200 $233 $433 $2,700 $2,681 $5,381
========================= ==========================

Restructuring charges are related to the closure of our Syracuse, New
York, manufacturing facility and our Mira Loma, California, distribution
center.

The pension settlement charges were triggered by excess lump sum
distributions taken by employees, which required us to record unrecognized
gains and losses in our pension plan accounts.

Table 2
Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA)
(Dollars in thousands)

Three Months Six Months ended
Ended June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----

Reported net income (loss) $2,664 $(2,119) $(25,229) $(5,596)

Add:
Interest expense 17,532 17,620 34,711 34,771
(Benefit) provision for income taxes (5,947) 3,802 (7,324) 359
Depreciation and amortization 10,518 11,238 22,246 22,534
------ ------ ------ ------
EBITDA 24,767 30,541 24,404 52,068

Add:
Special Charges 433 - 5,381 -
Less: Depreciation expense included
in Special Charges and also in
Depreciation and Amortization above - - (705) -

------- ------- ------- -------
Normalized EBITDA $25,200 $30,541 $29,080 $52,068
======= ======= ======= =======

Table 3
Reconciliation of Net Cash provided by (used in) Operating Activities to
Free Cash Flow
(Dollars in thousands)

Three Months Six Months ended
Ended June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----

Net cash provided by (used in)
operating activities $24,706 $5,080 $39,090 $(23,059)
Capital expenditures (4,610) (8,260) (9,550) (17,612)
Proceeds from asset sales and other 21 5 88 46
-- - -- --
Free Cash Flow $20,117 $(3,175) $29,628 $(40,625)
======= ======= ======= ========

Table 4
Summary Business Segment information
(Dollars in thousands)

Three months Six months ended
ended June 30, June 30,
--------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
Net Sales:
North American Glass $137,744 $155,013 $246,487 $282,490
North American Other 24,341 30,120 45,718 56,703
International 34,533 41,765 63,384 78,152
Eliminations (792) (2,070) (1,910) (5,241)
---- ------ ------ ------
Consolidated Net Sales $195,826 $224,828 $353,679 $412,104
======== ======== ======== ========

Normalized Earnings (Loss)
before Interest & Taxes (EBIT):
North American Glass $11,930 $14,938 $5,807 $22,010
North American Other 3,691 3,641 5,017 7,459
International (939) 724 (3,285) 65
---- --- ------ --
Consolidated Normalized EBIT $14,682 $19,303 $7,539 $29,534
======= ======= ====== =======

Normalized Depreciation & Amortization: (1)
North American Glass $6,336 $6,425 $12,783 $12,978
North American Other 243 755 881 1,511
International 3,939 4,058 7,877 8,045
----- ----- ----- -----
Consolidated Normalized
Depreciation & Amortization $10,518 $11,238 $21,541 $22,534
======= ======= ======= =======

(1) Normalized Depreciation & Amortization for YTD 2009 excludes $705 of
depreciation expense that is included in Special Charges below.

Special Charges:
North American Glass $172 $- $2,674 $-
North American Other 261 - 2,707 -
International - - - -
- - - -
Consolidated Special Charges $433 $- $5,381 $-
==== == ====== ==

Reconciliation of Normalized EBIT to Net Income (Loss):
Segment Normalized EBIT $14,682 $19,303 $7,539 $29,534
Special charges (433) - (5,381) -
Interest Expense (17,532) (17,620) (34,711) (34,771)
Income Taxes 5,947 (3,802) 7,324 (359)
----- ------ ----- ----
Net Income (loss) $2,664 $(2,119) $(25,229) $(5,596)
====== ======= ======== =======

Note:
North American Glass-includes sales of glass tableware from subsidiaries
throughout the United States, Canada and Mexico.

North American Other-includes sales of ceramic dinnerware, metal
tableware, holloware and serveware and plastic items.

International-includes worldwide sales of glass tableware from
subsidiaries outside the United States, Canada and Mexico.

SOURCE Libbey Inc.

Kenneth Boerger, VP-Treasurer, +1-419-325-2279; Greg Geswein, VP/Chief
Financial Officer, +1-419-325-2451