Avery Dennison To Acquire Paxar

The Boards of Directors of Pasadena,
Calif.-based Avery Dennison Corp. — a developer and manufacturer of pressure-sensitive labeling
materials; office products; and retail tag, ticketing and branding systems — and White Plains,
N.Y.-based Paxar Corp. — a developer of identification solutions to the apparel and retail industry
— have approved an agreement whereby Avery Dennison will acquire all outstanding shares of Paxar
for $30.50 a share in a cash transaction valued at $1.34 billion. The transaction is expected to
close by the end of 2007.

“Combining with Avery Dennison provides substantial benefits to our customers while
delivering compelling value to Paxar shareholders,” said Rob van der Merwe, chairman, president and
CEO, Paxar Corp. “In particular, the broader capabilities of the combined company will better meet
customer demands for improved quality, product innovation and speed of delivery.”

Customer benefits also include the combined companies’ ability to better serve customers in
Europe, Latin America, Asia and the Middle East due to complementary geographic territories.

Avery Dennison and Paxar report they will develop an integration plan with the goal of
retaining systems and people from both companies, although overlapping positions will be

April 3, 2007