2010 marked the 50th anniversary of Sealed Air Corporation and our iconic Bubble Wrap® brand, as well as a turning point for our organization.

After focusing and investing over the last five years to optimize our internal operations, lower our cost structure, revitalize our R&D programs, reposition our supply chain platform to support developing region growth, and successfully deploy a global SAP enterprise reporting system, we are now positioned to realize the benefits of these investments. In 2010, we outlined the key drivers needed to accelerate volume growth to 5% to 6% annually and return to a 15% operating profit margin by the 2012/2013 time frame.

In 2010, we realized strong momentum towards reaching our future goals. We achieved:

• 6% sales increase to $4.5B in revenue;
• 5% volume growth with a peak 7% increase in the fourth quarter;
• Launch of over 55 solutions−double the rate in 2009;
• $100 million in productivity benefits;
• Record productivity, yield and safety metrics;
• Operating profit margin of 11.9%, or adjusted margin of 12.2%;
• Earnings per share of $1.44, or adjusted earnings per share of $1.60;
• Solid free cash flow of $342 million; and
• Expansion of our sustainability initiatives with the launch of our SmartLife™ approach.

Today, we are focused on pioneering what is next in material science, in automation technology, and in service−based solutions for our expanding customer base. Ultimately, our strategy places an emphasis on sustainable growth, reinforcing our competitive advantages, developing disruptive, pioneering technologies, and achieving greater profitability. By achieving our goals, we are confident in our ability to enhance the measurable benefits we bring to our customers, continue a longstanding tradition of creating a positive impact for our employees, consumers and communities, and thereby, increase the value we can return to stockholders. We believe all of these factors will help secure our competitive position for the next 50 years.

I invite you to read through this annual review to learn more about Sealed Air, our recent innovations, our growth story and what sets us apart in the markets we serve.

Sincerely,

William V. Hickey
President and Chief Executive Officer