8 million in the year-ago quarter. Libbey reported that its diluted earnings per share for the first six
months of 2005, as detailed in the attached Table 2, and excluding special
charges as detailed in the attached Table 1, were 27 cents as compared with 73
cents in the first six months of the prior-year." The Company also reported that total expenditures
for the Chinese facility are planned to be approximately $46 million with an
additional $14 million to be spent in 2005 and approximately $27 million in
2006. GAAP; the
inability to achieve savings and profit improvements at targeted levels in the
Company's operations or within the intended time periods; whether the Company
completes any significant acquisitions, and whether such acquisitions can
operate profitably.2%)

Minority interest (4) -

Net (loss) income $(870) $9,365 (109.3%)

Net (loss) income per share:
Basic $(0.S.8 million higher during the
quarter and pension and postretirement medical expenses increased $0.
Pretax equity loss from Vitrocrisa , the Company's joint venture in Mexico,
was $2.3 Million During Fourth Quarter
Libbey reduced inventories by $25. In addition, lower glassware
sales to foodservice, retail and industrial customers , an increase of $6. The effective tax rate changed to 24.4
million, or $1.6 million and accounts
payable were $3.60
Special charges - net of tax 0.2%)

Provision for income taxes (6,384) 3,528

(Loss) income before minority
interest (19,321) 8,252 (334.

stankard zoog

18 per diluted share, compared with
net income of $9. Sales to World Tableware customers, industrial
glassware customers and Royal Leerdam customers were all down over 6. Libbey also incurred $4. Increases to workers compensation reserves (mostly
non-cash), primarily for workers in Syracuse, New York, were $6.4 million in the year-ago period as the result
of lower machine activity, higher repair expenses and higher natural gas
costs .6 million lower than at
December 31, 2004, as the result of successful inventory reduction programs .
Excluding Crisal, accounts receivable increased $3.zhtml?p=irol-eventDetails+c=64169+eventID=1200401 .

Based in Toledo, Ohio, the Company operates glass tableware manufacturing
plants in the United States in Louisiana and Ohio, in Portugal and in the
Netherlands.
(3) All charges were non-cash transactions.8%)
Equity loss -- pretax (2,721) (588)
Other income 914 805

(Loss) earnings before interest ,
income taxes and minority interest (23,295) 4,525 (614.

zoog leadlighting

Sales to retail and industrial glassware
customers were down over nine percent, largely attributable to the Company's
earlier decision to discontinue the sale of some low margin products.5 million in the
second quarter of 2004, was a result of increased maintenance and other
manufacturing costs, lower machine activity and higher natural gas costs,
partially offset by improved margin on sales.
To listen to the call, please go to the website at least 10 minutes early
to register, download and install any necessary software.5%
Freight billed to customers 481 564
Total revenues 145,019 136,316

Cost of sales (1) 117 ,963 103,394
Gross profit 27,056 32,922 (17.9%)
Equity (loss) earnings -- pretax (752) 1,456
Other income 431 588

Earnings before interest, income
taxes and minority interest 2,171 17,480 (87.9%)

Selling, general and administrative
expenses (1) 38,321 34,479
Special charges (1) 7,194 -
Income from operations 2,580 20,759 (87.1 million
higher than the fourth quarter of the previous year as the result of higher
self -insured outstanding claims activity and related changes in incurred but
not reported estimates.7 million, as compared with pretax loss of $0. Libbey accomplished this decrease by reducing activity levels at all
glassware and ceramic dinnerware facilities and selling slow-moving products
at greatly reduced prices.3 million,
or $0.net/phoenix. 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.S.

pate kroma

Partially offsetting these increases were lower
glassware shipments to foodservice, retail and industrial customers.2 million on a pretax basis as compared
to pretax earnings of $0.1 million in the year-ago period. A replay will be
available for 7 days after the conclusion of the call.S.

Based in Toledo, Ohio, the Company operates glass tableware manufacturing
plants in the United States in Louisiana and Ohio, in Portugal and in the
Netherlands. Its
Syracuse China subsidiary designs, manufactures and distributes an extensive
line of high-quality ceramic dinnerware, principally for foodservice
establishments in the United States.73

LIBBEY INC.C., a domestic distributor of industrial glassware for
Vitrocrisa in the U.

Quarterly Dividend
The Company announced that its Board of Directors declared a quarterly
cash dividend of 2.m.11 (1,463.39) $0.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

December 31, September 30, December 31,
2005 2005 2004
(unaudited)
ASSETS

Cash $3,242 $1,242 $6,244
Accounts receivable - net 79,042 75,122 67,522
Inventories - net 122,572 147,848 126,625
Deferred taxes 8,270 8,847 7,462
Other current assets 10,787 18,660 3,308
Total current assets 223,913 251,719 211,161

Investments 76,657 81,271 82,125

Other assets 33,483 40,015 36,537

Goodwill and purchased intangibles -
net 61,603 70,857 66,003

Property, plant and equipment
- net 200,128 204,608 182 ,378

Total assets $595,784 $648,470 $578,204

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable $11,475 $15,748 $9 ,415
Accounts payable 47,020 53,551 43,140
Accrued liabilities 53,011 40,413 38,996
Deposit liability - 16,623 16,623
Special charges reserve 2,002 3,029 3,025
Other current liabilities 7,131 7,650 5,839
Long-term debt due within one year 825 243,857 115
Total current liabilities 121,464 380,871 117,153

Long-term debt 249,379 5,829 215 ,842
Deferred taxes - 13,252 12,486
Pension liability 54,760 43,741 36,466
Nonpension postretirement benefits 45,081 45,882 45,716
Other liabilities 5,461 6,628 6,978
Total liabilities 476,145 496,203 434,641
Minority interest 34 98 -
Total liabilities and minority
interest 476,179 496,301 434,641
Total shareholders' equity 119,605 152,169 143,563

Total liabilities and
shareholders' equity $595,784 $648,470 $578,204

LIBBEY INC.

leadlighting trabucco

6 million compared with $20.4 million of working capital associated with Crisal." He added, "We plan
to break ground in China on our new production facility during the third
quarter. The conference call will be
simulcast live on the Internet on both http://www. Libbey has recorded a pretax charge of $847 in
the second quarter 2005 and $3,844 year-to-date 2005, as detailed below.06) $0.06 ) $0.8%)

Weighted average shares:
Outstanding 13 ,869 13,678
Diluted 13,869 13,699

(1) Refer to Table 1 for Special charges detail

LIBBEY INC.18) $0.5 million related to impairment of goodwill and other
intangible assets ($9.6% for the quarter from 12. Causes of the reduction
were primarily related to $27. Libbey reported that its
net income per diluted share for 2005, as detailed in the attached Table 2,
and excluding special charges as detailed in the attached Table 1, was $0.6 million at December 31, 2005, as compared to
$151.5 cents per share. Meier, chairman and chief executive officer, commenting on the
quarter and the Company 's outlook for the first quarter of 2006 said, "Fourth
quarter earnings per share were impacted significantly by our successful
efforts to reduce inventories. All of these factors are expected to result in a diluted
loss per share of $0.

The above information includes "forward-looking" statements as defined in
the Private Securities Litigation Reform Act of 1995.S. In addition, Libbey is a
joint venture partner in the largest glass tableware company in Mexico.L. and Canada.

caste beveled

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 the
Company's joint venture in Mexico, Vitrocrisa, expressed under U. In addition, it is the basis on which Libbey's management
internally assesses performance and such non-GAAP measures are relevant to
Libbey's determination of compliance with financial covenants included in
its debt agreements.9 million in special charges for pension
settlement accounting relating to excess lump sum distributions taken by
retirees during 2005.6 million in the fourth
quarter of 2004, primarily as a result of lower machine activity and other
plant costs as well as employee benefit costs.
Equity loss from Vitrocrisa was $4.34 in the prior year. 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 acquisitions , and whether such acquisitions
can operate profitably.18 1.8%)

Interest expense 5,015 2,782

(Loss) income before income taxes
and minority interest (28,310) 1,743 (1,724.7%)

Minority interest 64 -

Net (loss) income $(21,004 ) $1,527 (1,475.S.

dichroic curls

5 Percent

TOLEDO, Ohio, Libbey Inc.5 million, as compared with
earnings per share of 68 cents and sales of $135.8 million in the
year-ago period.32 to $0.8 million.
(2) All non-cash charges
(3) Summary classifications:

Cost of sales $867 $867
Selling, general and administrative
expenses 1,347 1,347
Special charges 4,197 7,194
Total special charges $6,411 $9,408

Table 2
Reconciliation of Non-GAAP Financial Measures for Special Charges
(Dollars in thousands, except per-share amounts)

In accordance with the SEC's Regulation G, the following table provides
non-GAAP measures used in the earnings release and the reconciliation to
the most closely related Generally Accepted Accounting Principles (GAAP)
measure. Libbey believes that providing supplemental non-GAAP financial
information is useful to investors in understanding Libbey's core business
and trends.68 $(0.3%)

Provision for income taxes (427) 4,599

(Loss) income before minority
interest (866) 9,365 (109.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts )
(unaudited)

SIX MONTHS ENDED
June 30, June 30, Percent
2005 2004 Change

Net sales $274,322 $258,875 6.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)
(unaudited)

SIX MONTHS ENDED
June 30, 2005 June 30, 2004

Operating activities
Net (loss) income $(2,519) $9,930
Adjustments to reconcile net (loss)
income to net cash provided by
operating activities:
Depreciation and amortization 16,451 15,443
Equity loss (earnings) - net of tax 29 (127)
Minority interest 21 -
Change in accounts receivable (1,697) (6,258)
Change in inventories (4,511) (8,601)
Change in accounts payable (7,886) (4,655)
Special charges 9,408 -
Special charges cash payments (5,896) -
Other operating activities 8,091 5,400
Net cash provided by
operating activities 11 ,491 11,132

Investing activities
Additions to property, plant and
equipment (19,114) (17,026)
Crisal acquisition and related costs (28,990) -
Net cash used in investing activities (48,104) (17,026)

Financing activities
Net bank credit facility activity 32,880 (5,000)
Other net borrowings 2,713 13,738
Stock options exercised 99 328
Dividends (2,768) (2,728)
Other (15) (838)
Net cash provided by financing activities 32,909 5,500

Effect of exchange rate fluctuations
on cash - (1)

Decrease in cash (3,704) (395)
Cash at beginning of period 6,244 2,750

Cash at end of period $2,540 $2,355

LIBBEY INC.
CONDENSED CONSOLIDATED JOINT VENTURE STATEMENTS OF OPERATIONS
(Dollars in thousands)
(unaudited)

THREE MONTHS ENDED
June 30, 2005 June 30, 2004
Total revenues $49,063 $48,490
Cost of sales 41,130 39,270
Gross profit 7,933 9,220
Selling, general and administrative expenses 6,001 5,650
Income from operations 1,932 3,570
Remeasurement (loss) gain (895) 507
Other expense (237) (22)
Earnings before interest and taxes 800 4,055
Interest expense 2,333 1,083
(Loss) income before income taxes (1,533) 2,972
Income taxes (626) 813
Net (loss) income $(907) $2,159

SIX MONTHS ENDED
June 30, 2005 June 30, 2004
Total revenues $94,532 $90,968
Cost of sales 77,829 77,588
Gross profit 16,703 13,380
Selling, general and administrative expenses 11,328 11,016
Income from operations 5,375 2,364
Remeasurement (loss) gain (807) 327
Other expense (770) (123)
Earnings before interest and taxes 3,798 2,568
Interest expense 4,202 2,430
(Loss) income before income taxes (404) 138
Income taxes (344) (120)
Net (loss) income $(60) $258

Libbey is a 49% equity owner in Vitrocrisa Holding, S.2 million), impairment of plant, property and equipment
($6. The effective tax rate
changed to 25.
Net loss was $21.1 million on a pretax basis, as
compared to pretax loss of $1.60
Diluted $(1. de R. de
C. GAAP, is shown above .

trabucco beveled

Equity loss from Vitrocrisa was $0.73 per diluted share, in the year-ago
period.
Excluding Crisal, inventories at June 30, 2005, were $3. Eastern Daylight Time.net/phoenix. 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.25 $0 .50 on sales of $158. Factors contributing to the loss include special charges at
Syracuse China of $16. The Company
reported that its diluted loss per share for the quarter, as detailed in the
attached Table 2, and excluding the special charges as detailed in the
attached Table 1, was 51 cents as compared with diluted income per share of 29
cents in the prior-year quarter.3 million during the last three months
of 2005.1 million from $544. The increase in
sales was attributable to the Crisal acquisition in Portugal and higher sales
of World Tableware, Syracuse China and Traex products.0% decrease in shipments to industrial
glassware customers primarily as the result of softness in the candle
industry. In 2005, Libbey Inc.
CONDENSED CONSOLIDATED JOINT VENTURE STATEMENTS OF INCOME
(Dollars in thousands)

THREE MONTHS ENDED

December 31, December 31,
2005 2004

Total revenues $50,332 $49,272
Cost of sales 46,789 41,663
Gross profit 3,543 7,609
Selling, general and administrative
expenses 6,372 5,511
(Loss) income from operations (2,829) 2,098
Remeasurement loss (332) (1,281)
Other expense (500) (93)
(Loss) earnings before interest
and taxes (3,661) 724
Interest expense 1,892 1,924
Loss before income taxes (5,553) (1,200)
Income taxes 1,776 (284)
Net loss $(7,329) $(916)

TWELVE MONTHS ENDED

December 31, December 31,
2005 2004

Total revenues $191,801 $189,761
Cost of sales 167,087 162,046
Gross profit 24,714 27,715
Selling , general and administrative
expenses 23,387 22 ,250
Income from operations 1,327 5,465
Remeasurement loss (1,208) (1,341)
Other expense (1,376) (463)
(Loss) earnings before interest
and taxes (1,257) 3,661
Interest expense 7,110 6,589
Loss before income taxes (8,367) (2 ,928)
Income taxes 931 (1,106)
Net loss $(9,298) $(1,822)

The Company is a 49% equity owner in Vitrocrisa Holding, S.

zoog fused

5 percent to $144.
Pretax equity loss from Vitrocrisa, the Company's joint venture in Mexico,
was $0.
Income from operations was $2.9 million, or $0.8 million to $170.

Outlook for 2005
John F.49 to $0. We are very excited about this new production facility expected to be
operational by early 2007.S. In 2004, Libbey Inc. Pursuant to the plan,
Libbey closed its manufacturing facility in City of Industry, California,
in February 2005 and realigned production among its other glass
manufacturing facilities.8%)

Selling , general and administrative
expenses (1) 20,367 17,486
Special charges (1) 4,197 -
Income from operations 2,492 15,436 (83.2%)

Provision for income taxes (1,230 ) 4,891

(Loss) income before minority
interest (2,498) 9,930 (125. (NYSE: LBY)
announced that its diluted loss per share for the fourth quarter ended
December 31, 2005, was $1.
The Company recorded a loss from operations of $21 .4% in the year-ago period. Although the Company's decision to aggressively
reduce inventories negatively impacted pretax earnings by more than $8 million
(exceeding the Company's October 2005 estimate of $3 million), the Company's
cash flow position is strengthened by this significant reduction in its
investment in inventory.0 million at December 31, 2004. This is a reduction from the quarterly
cash dividend of 10 cents per share, which has been paid since the first
quarter of 2003. The pretax charge was $4,921 in the fourth quarter 2005 and
year-to-date 2005.74
Net (loss) income per diluted share
excluding special charges $(0.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts)

THREE MONTHS ENDED Percent
December 31, December 31, Change
2005 2004

Net sales $158,238 $154,102 2.5%)

Net (loss) income per share:
Basic $(1.V.

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8 million in the prior-year
second quarter.
The Company recorded income from operations of $2.4 million in the year-
ago quarter.06 per diluted share, as compared with
diluted earnings per share of $0.
In addition, in June 2005, Libbey reduced its North American salaried
workforce by seven percent in order to reduce Libbey's overall cost
profile.18) $0.27 $0.7 percent to
$158.0
percent, largely attributable to pricing pressures in the industrial channel
of distribution and softness in the European retail market.8 million in the year-ago period.60 per diluted share, in the year-ago period.

Working Capital
Working capital, defined as inventories and accounts receivable less
accounts payable, was $154.7 million of
working capital associated with the Crisal business acquired in January 2005,
working capital was $7. 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 the
Company's joint venture in Mexico, Vitrocrisa , expressed under U. Its Traex subsidiary, located in
Wisconsin, designs, manufactures and distributes an extensive line of plastic
items for the foodservice industry.47 0. and related Mexican companies (Vitrocrisa), which manufacture, market and
sell glass tableware (beverageware, plates, bowls, serveware and accessories)
and industrial glassware (coffee pots, blender jars, meter covers, glass
covers for cooking ware and lighting fixtures sold to original equipment
manufacturers) and a 49% equity owner in Crisa Industrial, L.

beveled kroma

Table 1
Summary of Special Charges
(Dollars in thousands)

In August 2004, Libbey announced that it is realigning its production
capacity in order to improve its cost structure.0%
Freight billed to customers 978 1,055
Total revenues 275,300 259,930

Cost of sales (1) 227,205 204,692
Gross profit 48,095 55,238 (12.
and related Mexican companies (Vitrocrisa), which manufacture , market and
sell glass tableware (beverageware, plates, bowls, serveware and
accessories ) and industrial glassware (coffee pots, blender jars, meter
covers, glass covers for cooking ware and lighting fixtures sold to
original equipment manufacturers) and a 49% equity owner in Crisa
Industrial, L.5 million during the
quarter, as compared with income from operations of $4.1 million.3 percent
to $568.9 million lower than at December 31, 2004. Eastern Standard Time . To listen
to the call, please go to the website at least 10 minutes early to register,
download and install any necessary software.9%)

Selling, general and administrative
expenses (1) 71,535 68,574
Impairment of goodwill and other
intangible assets 9,179 -
Special charges (1) 14,745 7,993
(Loss) income from operations (8,917) 23,895 (137.L.
Summarized combined statements of income for the Company's investments,
accounted for by the equity method under U.

Sites of individual glass crafters and artists offering their items for sale to the general public .

dichroic zoog

2 million as compared to June 30,
2004 and includes $11.m.
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, including the impact of lower
duties for imported products; major slowdowns in the retail, travel or
entertainment industries in the United States, Canada, Mexico and Western
Europe, caused by terrorist attacks or otherwise; significant increases in
per-unit costs for natural gas, electricity, corrugated packaging, and other
purchased materials; higher interest rates that increase the Company's
borrowing costs; 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. Its Traex subsidiary, located in
Wisconsin, designs, manufactures and distributes an extensive line of plastic
items for the foodservice industry.31 - 0. and Canada. Natural gas costs were $1.03 to $0. A replay will be available for 7
days after the conclusion of the call. Libbey has recorded a pretax charge of
($3,257) in the fourth quarter 2005 and $1,073 year-to-date 2005, as
detailed below.3%)
Equity loss -- pretax (4,100) (1,435)
Other income 2,567 2,369

(Loss) earnings before interest ,
income taxes and minority interest (10,450) 24,829 (142.39) $0.

leadlighting stankard

The increase in sales was
attributable to the Crisal acquisition in Portugal and higher sales of World
Tableware, Traex, and Royal Leerdam products. Interest expense
decreased $0.

Working Capital
Working capital, defined as inventories and accounts receivable less
accounts payable, decreased by $0. Meier, chairman and chief executive officer, commenting on the
quarter and the Company's outlook for 2005 said, "Second quarter results were
in line with our updated guidance in our June 28, 2005, release.

The above information includes "forward-looking" statements as defined in
the Private Securities Litigation Reform Act of 1995.'s net sales totaled
$544.2 %)

Minority interest (21) -

Net (loss) income $(2,519) $9,930 (125.L.5 million in Syracuse China impairment and other charges, $4. Its Crisal subsidiary, located in
Portugal, provides an expanded presence in Europe .'s net sales totaled
$568.1 million. Pursuant to the plan,
Libbey closed its manufacturing facility in City of Industry,
California, in February 2005 and realigned production among its other
glass manufacturing facilities.11 $(1.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts)

TWELVE MONTHS ENDED Percent
December 31, December 31, Change
2005 2004

Net sales $568,133 $544,767 4 ., a domestic
distributor of industrial glassware for Vitrocrisa in the U.

leadlighting wallhangings

Libbey Inc. Announces Second Quarter Results

5
million from $135.

Three Months Six Months
ended ended
June 30, 2005 June 30, 2005

Capacity realignment:
Fixed asset related $372 $520
Severance + benefits - 2,019
Miscellaneous 475 1,305
Included in Special charges (1) $847 $3,844

Salary reduction program:
Pension + retiree welfare $867 $867
Included in Cost of sales 867 867

Pension + retiree welfare 1,347 1,347
Included in Selling, general and
administrative expenses 1,347 1,347

Employee termination costs 3,350 3,350
Included in Special charges 3,350 3,350

Pretax salary reduction program (2) $5,564 $5,564

Total Special charges (3) $6,411 $9,408

(1) Cash charges for the capacity realignment project for the quarter
ended and year-to-date June 30, 2005, were $4,155 and $5,896,
respectively.8%)

Interest expense 6,842 7,092

(Loss) income before income taxes
and minority interest (3,728) 14,821 (125.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)
(unaudited )

THREE MONTHS ENDED
June 30, 2005 June 30, 2004

Operating activities
Net (loss) income $(870) $9,365
Adjustments to reconcile net (loss)
income to net cash provided
by operating activities:
Depreciation and amortization 8,066 7,631
Equity loss (earnings) - net of tax 444 (1,058)
Minority interest 4 -
Change in accounts receivable 197 (7,105)
Change in inventories (791) (5,432)
Change in accounts payable 3,748 783
Special charges 6,411 -
Special charges cash payments (4,155) -
Other operating activities 9,588 6,294
Net cash provided by
operating activities 22,642 10 ,478

Investing activities
Additions to property, plant and
equipment (8,709) (8,859)
Crisal acquisition and related costs (42) -
Net cash used in investing activities (8,751 ) (8,859)

Financing activities
Net bank credit facility activity (8,756) (5,000)
Other net borrowings (3,429) 6,602
Stock options exercised - 88
Dividends (1,386) (1,366)
Other 25 (838)
Net cash used in financing activities (13,546) (514)

Increase in cash 345 1,105
Cash at beginning of period 2,195 1,250

Cash at end of period $2,540 $2,355

LIBBEY INC. de C. Summarized combined statements of
income for Libbey 's investments, accounted for by the equity method
under U.1 million in the
prior-year fourth quarter. The lower
rate in the year-ago period was primarily due to statutory tax rate reductions
in the Netherlands and Mexico.11 in the fourth quarter of 2004.9 percent during 2005 from 30. The Company reported a net loss of $19. However, excluding the $10. While we saw the positive results of our salary
reduction program in our income from operations, they were masked by asset
impairment , pension settlement accounting, workers compensation, and inventory
write-down charges.:
- is a leading producer of glass tableware in North America;
- is expanding its international presence with facilities in the
Netherlands and Portugal and a facility in China that is expected to
begin production in 2007;
- is a leading producer of tabletop products for the foodservice
industry; and
- exports to more than 90 countries.
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.1%)

Interest expense 15,255 13,049

(Loss) income before income taxes
and minority interest (25,705) 11,780 (318.

nolin trabucco

9 million in the year -ago period. In addition, Libbey is a
joint venture partner in the largest glass tableware company in Mexico.

Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004

Reported net (loss) income $(870) $9,365 $(2,519) $9,930
Special charges - net of tax 4,295 - 6,303 -
Net income excluding special charges $3,425 $9,365 $3,784 $9,930

Diluted (loss) earnings per share:
Reported net (loss) income $(0. de R.9 million, compared with income from
operations of $23.0
percent in 2004 primarily attributable to changes in Mexican tax rates and
changes in state tax credits.4 million during the
quarter . We also anticipate that pension and postretirement medical
expenses will be $0.08 for the first quarter.
We are very excited about this new production facility, which is expected to
be operational by early 2007.34

LIBBEY INC.

suncatchers dichroic

The Company
reported that its diluted earnings per share for the quarter, as detailed in
the attached Table 2, and excluding the special charges as detailed in the
attached Table 1, were 25 cents as compared with 68 cents in the prior-year
quarter.3 million as the result of lower interest rates.libbey.

Libbey Inc.73
Diluted $(0.7%)

Weighted average shares:
Outstanding 13,844 13,653
Diluted 13,846 13,682

(1) Refer to Table 1 for Special charges detail

LIBBEY INC. The Company reported that its diluted loss per
share for the quarter, as detailed in the attached Table 2, and excluding
special charges relating to impairment and other charges at its Syracuse China
facility, pension settlement accounting, the salary reduction program
announced in June 2005, and capacity realignment charges associated with the
shutdown of its City of Industry, California, facility in February 2005, as
detailed in the attached Table 1, was 51 cents as compared with earnings per
diluted share of 29 cents in the prior-year quarter .7 million related to the salary
reduction program in June 2005, and $1.1 million lower than it was a year ago. Its
Syracuse China subsidiary designs, manufactures and distributes an extensive
line of high-quality ceramic dinnerware, principally for foodservice
establishments in the United States .

- A pretax charge was recorded to recognize impairment of fixed assets,
intangible assets, goodwill and a write down of inventory for Syracuse
China.51) $0.6%)

Weighted average shares:
Outstanding 13,987 13,789
Diluted 13,995 13,793

(1) Refer to Table 1 for Special charges detail
(2) Royalties and net technical assistance income are now reported below
income from operations

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

TWELVE MONTHS ENDED

December 31, December 31,
2005 2004
Operating activities
Net (loss) income $(19,355) $8,252
Adjustments to reconcile net
(loss) income to net cash provided
by operating activities:
Depreciation and amortization 32,481 29,505
Equity loss - net of tax 4,556 893
Minority interest 34 -
Special charges 27,236 14,519
Special charges cash payments (10,693) (290)
Change in accounts receivable (8,976) (10 ,280)
Change in inventories 8,322 87
Change in accounts payable (6,915) 2,250
Gain on sale of assets (2,791) -
Other operating activities 14,214 (2 ,186)
Net cash provided by
operating activities 38 ,113 42,750

Investing activities
Additions to property, plant and
equipment (44,270) (40,482)
Proceeds from sale of assets 253 16,623
Dividends received from equity
investments - 980
Acquisitions and related costs (28,989) -
Net cash used in investing
activities (73,006) (22,879)

Financing activities
Net borrowings 39,652 (10,016)
Stock options exercised 99 491
Dividends (5,559) (5 ,481)
Other (2,301) (1,370)
Net cash provided by (used in)
financing activities 31,891 (16,376)

Effect of exchange rate fluctuations
on cash - (1)

(Decrease) increase in cash (3,002) 3,494

Cash at beginning of year 6,244 2,750

Cash at end of year $3,242 $6,244

LIBBEY INC.

pate schramek

9 million, or $0.68 in the second quarter of 2004. The increase in
sales was attributable to the Crisal acquisition in Portugal, higher sales of
Royal Leerdam products, increased export shipments and higher sales of World
Tableware and Traex products.37 for the
third quarter and $0. 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. The pretax charge for the salary reduction was $5,564 in the
second quarter of 2005.6%)

Interest expense 3,464 3,516

(Loss) income before income taxes
and minority interest (1,293) 13,964 (109.73 (124. GAAP, is shown above.2 million, as compared with
diluted earnings per share of 11 cents and sales of $154. Interest expense increased
$2.2 million as compared to the prior-year quarter as the result of the
expensing of financing fees in conjunction with the recently completed
amendments to the Company's financing agreements .0 million, or $1.2 million in special charges, including the
$16. Excluding
Crisal, inventories at December 31, 2005, were $14. The change is part of the Company's focus on its liquidity
and on enhancing its financial flexibility. The pretax charge fwas $16,534 in the fourth quarter 2005 and
year-to-date 2005.
(4) Summary classifications:

Cost of sales $1,098 $1,965
Selling, general and administrative
expenses - 1,347
Impairment of goodwill and other
intangible assets 9,179 9,179
Special charges 7,064 14,745
Total special charges $17,341 $27,236

Table 2
Reconciliation of Non-GAAP Financial Measures for Special Charges
(Dollars in thousands, except per-share amounts)

In accordance with the SEC's Regulation G, the following table provides
non-GAAP measures used in the earnings release and the reconciliation to the
most closely related Generally Accepted Accounting Principles (GAAP) measure.39) $0.08 $1.50) $0.

dichroic trabucco

(NYSE: LBY)
announced that its diluted loss per share for the second quarter ended
June 30, 2005, was 6 cents on sales of $144.5 million during the
quarter , as compared with income from operations of $15.

Six-Month Results
For the six months ended June 30, 2005, sales increased 6.3 Million in Fourth Quarter

TOLEDO, Ohio, Libbey Inc. The increase in
sales was attributable to the Crisal acquisition in Portugal, higher sales to
foodservice and retail glassware customers, and higher sales of Syracuse China
products and Traex products.2 million) and inventory write-downs to the lower of cost or market of
$1. Partially offsetting
these increases were slightly lower glassware shipments to foodservice and
retail customers and nearly a 15. The environment for the first quarter continues to be
challenging, as we expect higher natural gas costs of $1."

Webcast Information
Libbey will hold a conference call for investors on Thursday, February 16,
2006, at 11 a.
Libbey believes that providing supplemental non-GAAP financial information is
useful to investors in understanding Libbey's core business and trends.

paperweights stankard

The Company reported that its diluted earnings per share for
the quarter, as detailed in the attached Table 2, and excluding special
charges relating to the recently announced salary reduction program and
capacity realignment charges associated with the shutdown of its City of
Industry , California, facility in February 2005 and as detailed in the
attached Table 1, were 25 cents as compared with 68 cents in the prior-year
quarter.8 million lower than
at June 30, 2004. The
environment for the third quarter continues to be challenging, but we expect
significant improvements in the fourth quarter as compared to the fourth
quarter of 2004.com and
http://phx.:

-- is a leading producer of glass tableware in North America;
-- is expanding its international presence with facilities in the
Netherlands and Portugal and a facility in China planned to begin
production in 2007;
-- is a leading producer of tabletop products for the foodservice
industry;
-- exports to more than 90 countries.73
Special charges - net of tax 0.68 $0.

Libbey Inc. Announces Fourth Quarter Results

Sales Up 2.8
million .
Loss from operations was $8.08
as compared with diluted earnings per share of $1.

Three Months Twelve Months
ended ended
December 31, 2005 December 31, 2005

Capacity realignment:
Fixed asset related $1,225 $1,827
Severance + benefits - 2,100
Gain on land sales (4,508) (4,508)
Miscellaneous 26 1,654
Included in Special charges (1) $(3,257) $1,073

Salary reduction program:
Pension + retiree welfare $- $867
Included in Cost of sales - 867

Pension + retiree welfare - 1,347
Included in Selling, general
and administrative expenses - 1,347

Employee termination costs (857) 2,494
Included in Special charges (857) 2,494

Pretax salary reduction program (2) $(857) $4,708

Syracuse China asset impairment
and other charges:
Inventory $1,098 $1,098
Included in Cost of sales 1,098 1,098

Goodwill $5,442 $5,442
Intangibles 3,737 3,737
Included in Impairment of goodwill
and other intangible assets 9,179 9,179

Property, plant + equipment 6,257 6,257
Included in Special charges 6,257 6,257

Syracuse China asset impairment
and other charges (3) $16,534 $16,534

Pension Settlement Accounting: $4,921 $4,921
Included in Special charges(3) $4,921 $4,921

Total Special charges (4) $17,341 $27,236

(1) Cash charges for the capacity realignment project for the quarter
ended and year-to-date December 31, 2005, were $1,485 and $9,310 ,
respectively.
(2) Cash charges for the salary reduction program for the quarter ended
and year-to-date December 31, 2005, were $469 and $1,383,
respectively.60 (331.

sandblasted suncatchers

Second Quarter Results
For the quarter-ended June 30, 2005, sales increased 6 .S.1 million in the year-ago quarter. Partially offsetting these increased expenses were $1.

Inventory Reduction of $25. As of
February 13, 2006, Libbey had 14,036,726 shares outstanding . The conference call will be simulcast
live on the Internet on both http://phx.corporate-
ir .

Table 1
Summary of Special Charges
(Dollars in thousands)

The following table outlines non-recurring special charges:

- In August 2004, Libbey announced that it was realigning its production
capacity in order to improve its cost structure. In
addition, it is the basis on which Libbey's management internally assesses
performance and such non-GAAP measures are relevant to Libbey's determination
of compliance with financial covenants included in its debt agreements.50) $0.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in thousands)

THREE MONTHS ENDED

December 31, December 31,
2005 2004
Operating activities
Net (loss) income $(21,004) $1,527
Adjustments to reconcile net
(loss) income to net cash provided by
operating activities:
Depreciation and amortization 6,870 7,035
Equity loss - net of tax 3,591 449
Minority interest (64) -
Special charges 17,341 2,785
Special charges cash payments (1,954) (273)
Change in accounts receivable (4,594) 151
Change in inventories 24,976 15,923
Change in accounts payable (6,263) 2,763
Gain on sale of assets (3,561) -
Other operating activities 9,984 2,691
Net cash provided by
operating activities 25,322 33,051

Investing activities
Additions to property, plant and
equipment (17,767) (11,930)
Proceeds from sale of assets 76 16,623
Net cash (used in ) provided by
investing activities (17,691) 4,693

Financing activities
Net borrowings (2,485) (31,105)
Dividends (1,397) (1,378)
Other (1,749) (505)
Net cash used in financing activities (5,631) (32,988)

Effect of exchange rate fluctuations on cash - -

Increase in cash 2,000 4,756

Cash at beginning of period 1,242 1,488

Cash at end of period $3,242 $6,244

LIBBEY INC.

mobiles heyden

3 million from $258.1
million during the second quarter of 2005 as inventories and accounts
receivable were lower, but were partially offset by lower accounts payable.corporate-ir.68 (108.3 Percent for Full Year

Inventories Reduced by $25.2 million from $154.3 million in the year-
ago quarter.50 per diluted share, as compared with
diluted income per share of $0. Our joint venture, Vitrocrisa, will also incur higher costs for
natural gas and electricity during the first quarter as compared to the prior -
year quarter." He added,
"Construction in China on our new production facility continues to progress.S.

caste trabucco

Sales Up 6. The Company
reported a net loss of $2.

Webcast Information
Libbey will hold a conference call for investors on Thursday,
July 28, 2005, at 11 a.68
Diluted $(0.7 Percent in Quarter and 4 .

Fourth Quarter Results
For the quarter-ended December 31, 2005, sales increased 2 .9 million in the year-ago period.8
million in workers compensation expenses (mostly non-cash) in 2005, inventory
reduction programs, higher pension and postretirement medical expenses, and
higher natural gas costs all contributed to the loss from operations. The dividend will be paid on
March 14, 2006, to shareholders of record as of February 27, 2006. The
pretax charge for the salary reduction was ($857) in the fourth quarter
of 2005 and $4,708 year-to-date 2005.

Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004

Reported net (loss) income $(21,004) $1,527 $(19,355) $8,252
Special charges - net of tax 13,873 2,440 20,454 10,163
Net (loss) income excluding
special charges $(7,131) $3,967 $1,099 $18,415

Diluted (loss) earnings per share:
Reported net (loss) income $(1.1%)

Selling, general and administrative
expenses 16,426 18,324
Impairment of goodwill and other
intangible assets (1) 9,179 -
Special charges (1) 7,064 2,244
(Loss) income from operations (21,488) 4,308 (598.50) $0.3%
Freight billed to customers 1,932 2,030
Total revenues (2) 570,065 546,797

Cost of sales (1) 483,523 446,335
Gross profit 86,542 100,462 (13.1%)

Minority interest (34) -

Net (loss) income $(19,355) $8,252 (334.

etched fused

5 million, or $0.3 million from $171.
This is an increase in working capital of $8.54 for the fourth quarter. 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. Its Crisal subsidiary, located in
Portugal, provides an expanded presence in Europe. 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. 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 .06) $0.6%)
Equity (loss) earnings -- pretax (198) 67
Other income 732 1,087

Earnings before interest, income
taxes and minority interest 3,114 21,913 (85.18) $0.L.1 million related to the capacity
realignment charges in connection with the shutdown of Libbey's City of
Industry , California facility in February 2005.39 per diluted share, compared with net income of $8.
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, including the impact of lower
duties for imported products; major slowdowns in the retail, travel or
entertainment industries in the United States, Canada, Mexico and Western
Europe caused by terrorist attacks or otherwise; significant increases in
per-unit costs for natural gas, electricity, corrugated packaging , and other
purchased materials; higher interest rates that increase the Company's
borrowing costs; 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.

- Special charges were incurred for pension settlement accounting
relating to excess lump sum distributions taken by employees during
2005.29 $0.7%
Freight billed to customers 511 499
Total revenues (2) 158,749 154,601

Cost of sales (1) 147,568 129,725
Gross profit 11,181 24,876 (55.11
Diluted $(1.

delores schramek

Sales to foodservice glassware
customers were down slightly.
Net loss was $0. In addition to the special charges, causes of the reduction
were lower glassware sales to foodservice, retail and industrial customers,
reduced capacity utilization and higher pension and postretirement medical
expenses. Our expectations for sales growth of 10 percent to 12 percent
in the third quarter and 6 percent to 8 percent in the fourth quarter are
expected to result in diluted earnings per share of $0.45 -
Net income per diluted share
excluding special charges $0.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per-share amounts)
(unaudited )

THREE MONTHS ENDED
June 30, June 30, Percent
2005 2004 Change

Net sales $144,538 $135,752 6.

Full Year 2005 Results
For the twelve months ended December 31, 2005, sales increased 4.9 million of
pension settlement accounting charges, $4.4 million higher than the prior -year quarter, with higher
machine activity partially offsetting these higher costs Our expectations for
sales growth total less than 1 percent in the first quarter, with a slight
increase in margins . 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.

Libbey Inc. 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.99 0.2%)

Provision for income taxes (7,242) 216

(Loss) income before minority
interest (21 ,068) 1,527 (1,479.7%)

Weighted average shares:
Outstanding 13,906 13,712
Diluted 13,911 13,719

(1) Refer to Table 1 for Special charges detail
(2) Royalties and net technical assistance income are now reported below
income from operations

LIBBEY INC.C.

kroma dichroic

Factors contributing to the decrease, in addition to the special
charges, were lower sales to foodservice, retail and industrial customers,
reduced capacity utilization and higher pension and postretirement medical
expenses.8 million, as compared with pretax earnings of $1.0 percent to
$274.zhtml?p=irol-
eventDetails+c=64169+eventID=1105420 .4%)

Net (loss ) income per share:
Basic $(0.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

June 30, December 31, June 30,
2005 2004 2004
(unaudited ) (unaudited)

ASSETS

Cash $2,540 $6,244 $2,355

Accounts receivable - net 72,637 67,522 63,380

Inventories - net 139,860 126,625 134,297

Deferred taxes 8,747 7,462 7,402

Other current assets 5,884 3,308 3,545

Total current assets 229,668 211,161 210,979

Other assets 37,912 36,537 28,395

Investments 82,122 82,125 87,754

Goodwill and purchased intangibles -
net 66,671 66,003 65,204

Property, plant and equipment - net 209,477 182,378 174,183

Total assets $625,850 $578,204 $566 ,515

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable $12,200 $9,415 $14,142

Accounts payable 42,219 43,140 35,625

Accrued liabilities 49,788 38,996 44,359

Deposit liability 16,623 16,623 -

Special charges reserve 4,491 3,025 -

Other current liabilities 2,475 5,839 5,254

Long-term debt due within one year 825 115 115

Total current liabilities 128,621 117,153 99,495

Long-term debt 246,653 215,842 223,685

Deferred taxes 12,147 12,486 15,467

Pension liability 42,068 36,466 22,680

Nonpension postretirement benefits 46,052 45,716 46,986

Other liabilities 7,263 6,978 7,032
Total liabilities 482,804 434,641 415,345

Minority interest 21 - -

Total liabilities and minority
interest 482,825 434,641 415 ,345

Total shareholders' equity 143,025 143,563 151,170

Total liabilities and shareholders'
equity $625,850 $578,204 $566,515

LIBBEY INC.V.

9 million less
in selling , general and administrative expenses during the quarter as compared
to the prior-year quarter.

Outlook for 2006
John F. 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.

- In June 2005, Libbey reduced its North American salaried workforce by
seven percent in order to reduce Libbey's overall cost profile.5%)

Net (loss) income per share:
Basic $(1.