Solo Delivers Significant Performance Improvement in 2007

Net Debt Reduced by Approximately $400 Million during the Year

Profitability and Momentum Increase in Fourth Quarter
HIGHLAND PARK, Ill.--(Business Wire)--
Solo Cup Company (the "Company"), a leading manufacturer of
single-use products used to serve food and beverages, today announced
its fiscal year 2007 financial results. The results of the Company's
Hoffmaster(R) and Japanese businesses have been classified as
discontinued operations for all periods presented in the Company's
consolidated financial statements. As previously disclosed, these
businesses were fully divested in the fourth quarter of 2007.

Fourth Quarter 2007 Results

For the thirteen weeks ended December 30, 2007, the Company
reported net sales from continuing operations of $522 million, versus
$534 million for the thirteen weeks ended December 31, 2006. Gross
profit from continuing operations for the quarter increased from the
year ago period by $40 million to $74 million, reflecting a gross
margin of 14.3% for the current quarter versus 6.4% for the comparable
period in 2006. Operating income from continuing operations for the
fourth quarter 2007 was $23 million, which represents a $40 million
improvement over the prior year. The Company reported net income of
$99 million for the quarter, which included a gain on the sale of
discontinued operations of $77 million, compared to a net loss of $34
million in the comparable period in 2006.

"Our solid results in the fourth quarter reflect the significant
progress made throughout 2007 in focusing the company on its core
business and improving profitability," said Robert M. Korzenski,
president and chief executive officer, Solo Cup Company. "We have
integrated the Performance Improvement Program into our company
culture, successfully transitioning it from a formal, stand-alone
project into an ongoing and sustainable process."

Fiscal Year 2007 Results

For the fiscal year ended December 30, 2007, the Company reported
net sales from continuing operations of $2,106 million, versus $2,123
million for the fiscal year ended December 31, 2006. The decrease in
net sales reflects a decrease in sales volume partially offset by
higher sales prices. The volume decrease reflects general industry
trends as well as shifts in the Company's product mix, including a
de-emphasis of certain higher-volume commodity products such as straws
and stirrers. The increase in sales prices reflects price increases
implemented over the past year in response to higher costs for resin,
paper and energy, as well as more disciplined selling practices.

Gross margin from continuing operations in fiscal year 2007 was
11.7% compared to 9.5% in the prior year period, primarily driven by
improved product mix and greater efficiencies resulting from
implementation of the Company's performance improvement initiatives.
Selling, general and administrative expenses from continuing
operations decreased 6% this year to $204 million. The Company
reported net income in fiscal year 2007 of $68 million, compared to a
net loss of $375 million in fiscal year 2006.

As of December 30, 2007, the Company had in excess of $136 million
of liquidity under its revolving credit facilities and cash on hand.
Net cash provided by operating activities during the fiscal year 2007
was $96 million compared to net cash used in operating activities of
$52 million during 2006, a $148 million improvement. During 2007, the
Company reduced its net debt by approximately $400 million. Capital
expenditures for 2007 totaled $49 million versus $61 million during
2006.

The Company's Performance Improvement Program, announced in
December 2006, was designed to reduce costs and build profitability.
Initiatives in Supply Chain and Operations, SG&A and Commercial
Optimization focused on maximizing cash flow, reducing costs,
improving margin, increasing value and building a performance culture.
As of its formal conclusion in December 2007, the program generated
approximately $75 million in annualized run-rate EBITDA improvements,
exceeding its original targets.

"With cash flow from operations now helping to fund the business
and gross margins trending in the right direction, the Company is back
on track," said Korzenski. "However, there is still more work to be
done to bring our performance to industry levels. As our full-year
results show, we have the right leadership team in place to manage and
now grow our business."

Korzenski continued, "Solo Cup Company is in a far better position
than it was one year ago. The Company has regained the financial
flexibility necessary for focused investments in the business. We are
now better equipped to service and grow with our customers, and to
compete in an increasingly competitive marketplace."

Company Divests Dairy Packaging Assets

On March 7, 2008, the Company completed the sale of its dairy
packaging assets. Terms of the transaction were not disclosed. A
portion of the proceeds will be reinvested in the Company's core
business with the remainder to be applied to the Company's term loan.

"Dairy packaging requires a different business model and a
significant investment to remain competitive," said Korzenski. "This
transaction is part of Solo's larger effort to improve performance by
divesting non-core, non-strategic assets in order to focus resources
on more strategic growth opportunities."

The Company will host a conference call beginning at 10:00 a.m.
Central Daylight Time on Wednesday, March 12, 2008, to discuss its
fourth quarter and full-year financial results. The conference call
may be accessed by dialing 1-800-896-8445. A replay will be available
for one week after the call by dialing 1-888-203-1112 reservation
number 5079410.

Solo Cup Company is a $2.1 billion company exclusively focused on
the manufacture of single-use products used to serve food and
beverages for the consumer/retail, foodservice and international
markets. Solo has broad expertise in paper, plastic and foam
disposables and creates brand name products under the Solo and
Sweetheart names. The Company was established in 1936 and has a global
presence with facilities in Canada, Europe, Mexico, Panama and the
United States. To learn more about the Company, visit www.solocup.com.

STATEMENT REGARDING USE OF NON-GAAP MEASURES

The Non-GAAP financial measures contained herein and in the tables
set forth on Schedule A to this press release (EBITDA, Consolidated
EBITDA, Adjusted EBITDA and Pro Forma Consolidated EBITDA) are not
measures of financial performance calculated in accordance with GAAP
and should not be considered as alternatives to net income (loss) or
any other performance measure derived in accordance with GAAP. They
should not be considered in isolation or as a substitute for analysis
of our results as reported under GAAP, or as alternative measures of
liquidity. The non-GAAP financial measures are presented to provide a
view to measures similar to those used in evaluating our compliance
with certain financial covenants under our Credit Agreement dated
February 27, 2004, as amended (the "Credit Agreement"). They are also
used as a metric to determine certain components of performance-based
compensation. The pro forma adjustments and Pro Forma Consolidated
EBITDA are based on currently available information and certain
adjustments that we believe are reasonable and are presented as an aid
in understanding our operating results. They are not necessarily
indicative of (i) future results of operations that may be obtained by
the Company, or (ii) the Company's results of operations that would
have occurred had the transactions described in the footnotes taken
place as of January 2, 2006 or January 1, 2007.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties, which could cause actual results
to differ materially from the forward-looking statements. Such
statements are based on management's current reasonable and good faith
expectations. A number of risks and uncertainties could cause results
to differ from forward-looking statements. These risks and
uncertainties include, among others, the effect of general economic
and competitive business conditions, increases in energy, raw material
and other manufacturing costs, the impact of our significant debt on
our financial health and operating flexibility, and fluctuations in
demand for the Company's products. For further details of these and
other risks and uncertainties that may impact forward-looking
statements and the Company's business and financial results, see
information set forth under the heading "Risk Factors" in our Annual
Report on Form 10-K for the fiscal year ended December 30, 2007 and in
our other filings made from time to time with the SEC. The Company
does not undertake any obligation to update or revise any
forward-looking statements as a result of new information, future
events, changed assumptions or otherwise; and all forward-looking
statements speak only as of the time when made. Schedule A is attached
to this release and available on the Company's website.

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Schedule A

Solo Cup Company
Consolidated Statements of Operations
($ in millions)

Fiscal year Fiscal year 13 weeks 13 weeks
ended ended ended ended
December 30, December 31, December 30, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Net sales $2,106.3 $2,123.0 $521.6 $534.2
Cost of goods sold 1,859.7 1,921.3 447.1 499.8
------------ ------------ ------------ ------------

Gross profit 246.6 201.7 74.5 34.4
Selling, general
and
administrative
expenses 203.7 216.4 49.3 50.0
Impairment of
goodwill - 228.5 - -
(Gain) loss on
sale of property,
plant and
equipment (9.1) 4.5 2.4 1.5
------------ ------------ ------------ ------------

Operating
income (loss) 52.0 (247.7) 22.8 (17.1)
Interest expense,
net 79.4 75.0 17.0 20.6
Prepayment penalty 1.3 - - -
Loss on debt
extinguishment 4.0 - - -
Foreign currency
exchange gain,
net (4.1) (6.9) (0.5) (2.5)
Other (income)
expense, net (0.2) 0.1 (0.2) 0.1
------------ ------------ ------------ ------------

(Loss) income
from
continuing
operations
before income
taxes (28.4) (315.9) 6.5 (35.3)
Income tax
(benefit)
provision (19.5) 56.3 (17.8) (0.2)
------------ ------------ ------------ ------------

(Loss) income
from
continuing
operations (8.9) (372.2) 24.3 (35.1)
(Loss) income
from
discontinued
operations,
net of income
tax provision
(benefit) of
$3.0, $0.2,
($0.5) and
$0.8 (0.1) (2.8) (3.0) 1.1
Gain on sale
of
discontinued
operations,
net of income
tax provision
of $17.7 77.2 - 77.2 -
------------ ------------ ------------ ------------

Net income
(loss) $68.2 $(375.0) $98.5 $(34.0)
============ ============ ============ ============
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The following table reconciles EBITDA, Adjusted EBITDA,
Consolidated EBITDA and Pro Forma Consolidated EBITDA (non-GAAP
measures) to (loss) income from continuing operations (GAAP measure):

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($ in millions)

Fiscal year Fiscal year 13 weeks 13 weeks
ended ended ended ended
December 30, December 31, December 30, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
(Loss) income from
continuing
operations (GAAP
measure) $(8.9) $(372.2) $ 24.3 $(35.1)
Interest expense,
net (1) 84.7 75.0 17.0 20.6
Income tax
(benefit)
provision (19.5) 56.3 (17.8) (0.2)
Depreciation and
amortization 90.9 92.9 22.9 23.9
------------ ------------ ------------ ------------

EBITDA (non-
GAAP measure) 147.2 (148.0) 46.4 9.2
(Gain) loss on
sale of property,
plant and
equipment (9.1) 4.5 2.4 1.5
Foreign currency
exchange gain,
net (4.1) (6.9) (0.5) (2.5)
Benefit plan
curtailment gain - (22.1) - -
Prior period
adjustments (2) - 9.8 - -
Goodwill
impairment - 228.5 - -
Asset impairment 5.6 2.6 3.0 0.9
Other expenses (3) 1.5 29.9 0.2 7.8
Long term
incentive plan 0.9 - 0.9 -
------------ ------------ ------------ ------------

Adjusted EBITDA(4)
- continuing
operations (non-
GAAP measure) 142.0 98.3 52.4 16.9
Adjusted EBITDA -
discontinued
operations (non-
GAAP measure) 29.9 28.0 2.8 8.5
------------ ------------ ------------ ------------

Consolidated
EBITDA
(non-GAAP
measure) (5) 171.9 126.3 55.2 25.4

Less: Pro forma
adjustments (35.4) (39.4) (2.8) (11.3)
------------ ------------ ------------ ------------

Pro Forma
Consolidated
EBITDA
(non-GAAP
measure) (6) $136.5 $86.9 $52.4 $14.1
============ ============ ============ ============
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(1) Includes $4.0 million loss on debt extinguishment and $1.3
million prepayment penalty for the Second Lien Term Loan (under the
Company's Second Lien Credit Agreement dated March 31, 2006, as
amended) during fiscal year ended December 30, 2007.

(2) Cost of goods sold for the fiscal year ended December 31, 2006
includes a $9.8 million charge for excess and obsolete spare parts and
finished goods inventory that resulted from changes in the Company's
accounting estimates.

(3) In 2007, other expenses include charges related to the
Company's contemplated transactions, as well as the December 2006
amendments to the Company's Credit Agreement. In 2006, other expenses
includes expenses related to the implementation of our new order
management system, restructuring and integration expenses related to
the SF Holdings acquisition, legal expenses related to resolution of
contractual disputes arising from that acquisition, and costs
associated with our accounting restatement.

(4) Adjusted EBITDA in the Company's prior 2007 earnings
disclosures included an add-back for expenses related to the
implementation of our new order management system and professional
fees related to our Performance Improvement Program. These items are
not added back in this presentation and totaled $25.4 million for
fiscal year ended December 30, 2007, and $2.5 million for the thirteen
weeks ended December 30, 2007.

(5) Consolidated EBITDA is defined in the Company's Credit
Agreement and is a component of the evaluation used to determine
financial covenant compliance under the Credit Agreement.

(6) Pro Forma Consolidated EBITDA (i) excludes the EBITDA
contribution for the Hoffmaster business divested in Q4 2007 and the
Japanese straw and dairy businesses divested in Q4 2007 and Q4 2006,
respectively; and (ii) includes the impact of the sale leaseback
transaction of six properties completed in Q2 2007. Pro Forma
Consolidated EBITDA for fiscal year ended December 30, 2007 is a
measure that the Company uses to calculate its financial covenants
under its Credit Agreement and is intended to provide a view of the
Company's continuing operations. Pro Forma Consolidated EBITDA for
fiscal year ended December 31, 2006, for the 13 weeks ended December
30, 2007 and for the 13 weeks ended December 31, 2006 is shown as a
comparative measure.

The following table reconciles EBITDA and Adjusted EBITDA
(non-GAAP measures) to (loss) income from discontinued operations
(GAAP measure):

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($ in millions)

Fiscal year Fiscal year 13 weeks 13 weeks
ended ended ended ended
December 30, December 31, December 30, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
(Loss) income from
discontinued
operations (GAAP
measure) $(0.1) $ (2.8) $(3.0) $ 1.1
Interest expense,
net 18.6 15.8 4.5 4.8
Income tax
(benefit)
provision 3.0 0.2 (0.5) 0.8
Depreciation and
amortization 4.4 8.2 0.2 1.6
------------ ------------ ------------ ------------

EBITDA -
discontinued
operations
(non-GAAP
measure) 25.9 21.4 1.2 8.3
(Gain) loss on
sale of property,
plant and
equipment (0.2) 0.6 - 0.2
Foreign currency
exchange loss,
net 0.1 - 0.1 -
Asset impairment - 6.0 - -
Other expenses (1) 4.1 - 1.5 -
------------ ------------ ------------ ------------

Adjusted
EBITDA -
discontinued
operations
(non-GAAP
measure) $29.9 $28.0 $2.8 $8.5
============ ============ ============ ============
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(1) Other expenses include charges related to the sale of
Hoffmaster and our Japanese straw businesses.

Solo Cup Company
Media Contact:
Angie Chaplin, 847-579-3503
angie.chaplin@solocup.com
or
Analyst Contact:
Richard Ryan, 847-579-3603
richard.ryan@solocup.com

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