Liqui-Box Corporation (Nasdaq:LIQB) is pleased to announce the creation of a new contract packaging subsidiary.

It is designed to create additional customer value for the company's unique liquid packaging products. The new company will initially be called Liqui-Box Packaging, Inc.

"With our experience designing and manufacturing creative containers for the shipment and dispensing of liquids as well as our knowledge of processing and packaging purified water, it was a natural to extend our capabilities geographically and into other product markets," says Samuel B. Davis, Chief Executive Officer.

"This will allow us to help our customers try new concepts without having to go through the high costs of installing separate filling lines during the ramp-up period of product introduction."

Liqui-Box has already installed state-of-the-art water purification systems in its blow molding manufacturing facilities and intends to augment that with other processing capabilities.

"Having the ability to offer our customers the convenience of buying our containers empty or full should offer us a clear advantage in the packaging business," Davis said.

C. William McBee has been appointed President and CEO of the new subsidiary. He previously held the position of Chief Operating Officer of the parent company. Mr. McBee will also be responsible for the combined sales force until it is determined whether a separate sales structure is necessary.

Among those packages planned to be offered by Liqui-Box are the 2 1/2 gallon Handi-Tap(TM) containers in both HDPE and the recently introduced PET materials, as well as a variety of standup pouch and aseptically produced dispensing bags for institutional use.

"Since we are already a leader in aseptic filling machine technology both in the bag-in-box and form-fill-seal areas, this is a natural extension of what we think is the future of packaging technology."

"Consumers are increasingly demanding cleaner, safer, and more convenient ways of packaging products, and this just brings us one step closer to being able to satisfy that demand," said McBee. "We are looking forward to this next step in our product growth."