Avery Dennison Opens New Production Facility in Pune, India

Ranjangaon Industrial Area, Pune, India – January 17, 2008 – Avery Dennison Corporation (NYSE:AVY) today announced the opening of a new production facility in Pune in the Western Indian state of Maharashtra that will produce technically advanced pressure-sensitive materials for industrial and consumer products manufactured in the Asia Pacific region.

The state-of-the-art plant is Avery Dennison’s third major facility in India and represents an investment of over US $13 million. The Pune plant, situated on a 28 acre site, includes a new hot melt tandem coating line and brings Avery Dennison Roll Materials Group’s total investment in India to more than $30 million.

“During the last decade, the economic growth of India and the surrounding region has been phenomenal,” said Dean A. Scarborough, President and Chief Executive Officer of Avery Dennison. “We are proud to have been part of that growth. The new Pune facility reflects our strong commitment to helping our industrial and consumer customers in India and the Asia Pacific region build on this incredible record and remain one of the major drivers of economic expansion in the world.”

In addition to Pune, Avery Dennison has major manufacturing operations in Gurgaon, which it opened in 1997, and Bangalore, which was part of its 2007 acquisition of the global label and tag maker, Paxar. The Company also maintains a network of sales and distribution centers including locations at Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkatta and has a presence in Bangladesh, Sri Lanka and Pakistan.

Virtually every Avery Dennison business group has a presence in India, including its Roll Materials, Retail Information Services, Graphics and Reflective and Specialty Tape business segments. The Company employs over 1100 people in India and more than 2500 in South Asia.

“During the last decade, Avery Dennison has actively championed and spearheaded many major initiatives in close interaction with our customers that have significantly improved label converting and packaging for major industrial users in India and the surrounding area,” said Raj Srinivasan, Managing Director, Materials India. “The Pune facility will enhance Avery Dennison’s capabilities to continue to grow the market for pressure-sensitive materials in close interaction with our customers, as the dynamic changes in the economic environment drives the need for higher appeal and aesthetics in packaging”

Established more than 70 years ago in California, Avery Dennison is the global leader in the pressure-sensitive materials industry and its products are used in a wide variety of end user industries. These major end user business segments include Pharmaceuticals, Health & Personal Care, Home Care, Lube Oil, EDP, Automobile and Automobile components and Retail and Durable Tyre.

“India is one of our most important growth markets,” said John C. Quinn, Vice President and General Manager, Roll Materials Asia Pacific. “We established our first plant in India in 1997 and are the country’s largest producer of pressure-sensitive label materials. By opening this new facility in Pune we will be able to better serve our growing customer base in the region by providing the best available quality products and services, and continue to be an active partner with them in growing their businesses.”

Background Information

Avery Dennison is a global leader in pressure-sensitive labeling materials, retail tag, ticketing and branding systems, and office products. Based in Pasadena, Calif., Avery Dennison is a FORTUNE 500 Company with 2006 sales of $5.6 billion. Following the acquisition of Paxar in 2007, Avery Dennison employs more than 30,000 individuals in 51 countries worldwide, who develop, manufacture and market a wide range of products for both consumer and industrial markets. Products offered by Avery Dennison include: Fasson brand self-adhesive materials; Avery Dennison and Paxar brand products for the retail and apparel industries; Avery brand office products and graphics imaging media; specialty tapes, peel-and-stick postage stamps, and labels for a wide variety of automotive, industrial and durable goods applications.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

Certain information presented in this news release may constitute “forward-looking” statements. These statements and financial or other business targets are subject to certain risks and uncertainties. Actual results and trends may differ materially from historical or expected results depending on a variety of factors, including but not limited to fluctuations in cost and availability of raw materials; ability of the Company to achieve and sustain targeted cost reductions; foreign currency exchange rates; worldwide and local economic conditions; impact of competitive products and pricing; selling prices; impact of legal proceedings, including the European

Commission (“EC”), Canadian Department of Justice, and Australian Competition and Consumer Commission investigations, into industry competitive practices and any related proceedings or lawsuits pertaining to these investigations or to the subject matter thereof or of the recently concluded investigation by the U.S. Department of Justice (“DOJ”) (including purported class ctions seeking treble damages for alleged unlawful competitive practices, and purported class actions related to alleged disclosure and fiduciary duty violations pertaining to alleged unlawful competitive practices, which were filed after the announcement of the DOJ investigation, as well as a likely fine by the EC in respect of certain employee misconduct in Europe); impact of potential violations of the U.S. Foreign Corrupt Practices Act based on issues in China; impact of epidemiological events on the economy and the Company’s customers and suppliers; successful integration of acquisitions; financial condition and inventory strategies of customers; timely development and market acceptance of new products; fluctuations in demand affecting sales to customers; and other matters referred to in the Company’s SEC filings.

The Company believes that the most significant risk factors that could affect its ability to achieve its stated financial expectations in the near-term include (1) potential adverse developments in legal proceedings and/or investigations, including possible fines, penalties, judgments or settlements; (2) the impact of economic conditions on underlying demand for the Company's products; (3) the impact of competitors’ actions, including expansion in key markets, product offerings and pricing; (4) the impact of changes in raw material and energy-related costs and associated changes in selling prices; and (5) the ability of the Company to achieve and sustain targeted cost reductions.

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