Good morning everyone and welcome to the Sealed Air Conference Call discussing Sealed Air's fourth quarter and full year 2007 results. This call is being recorded. Leading the call today, we will have William V. Hickey, President and Chief Executive Officer and David H. Kelsey, Senior Vice president and Chief Financial Officer. After management's prepared comments, they will be taking questions. [Operator instructions] We do ask that you please limit yourself to one question per caller so that others will have a chance to ask their questions. And now at this time I'd like to turn the conference over to Ms. Amanda Butler, Director of Investor Relations. Please go ahead Ms. Butler.

Good morning everyone. Before we begin our call today, I would like to remind you that statements made during this call stating management's outlook or predictions for the future are forward-looking statements. These statements are made solely on information that is now available to us. Our future performance may be different due to a number of factors. Many of these factors are listed in our most recent annual report on Form 10-K or quarterly report on Form 10-Q. We have also posted supplemental financial information and reconciliation of non-GAAP measures that we expect to discuss on our website at sealedair.com in the investor relations information section under Filings. Now I'll turn it over to Bill Hickey, our CEO. Bill?

Thank you Amanda. Good morning everyone. I am Bill Hickey, President and CEO of Sealed Air Corporation. With me on the call today, in addition to Amanda, we have Dave Kelsey, our Chief Financial Officer. As an introduction I will provide a few highlights of our business for the fourth quarter and full-year 2007. Dave will then review select details of our financial results. After Dave's remarks, we will then have time to take all of your questions. We are pleased that we finished the year with steady sales, volume and earnings growth that met the guidance we originally provided to you back in January of 2007. All during an increasingly challenging year with increasing raw material and energy cost rising to new highs. In 2007, we continued to focus and execute on our growth plans for new product development and geographic expansion. Our successes in 2007 include the launch of over 20 new products including two new products based on renewable materials. We also expanded our presence in medical applications and specialty materials, two areas where we see high growth in the future. Looking at our operational initiatives. We finished the year with the completion of our flexible film lines in Shanghai, China, which are now running commercial products for the Chinese market. We completed the SAP integration in all regions of our company outside of North America, and we centralized our North American customer service center in South Carolina, and at the same time we maintain the efficiency in which we use our raw materials, which added over $30 million to our bottom line during 2007. Looking at our sales results, fourth quarter sales increased 9% setting another record of $1.3 billion. Excluding the favorable effect of foreign currency translation, our sales growth was largely driven by volume…

Thank you Bill. As Bill mentioned, our sales were a record $1.250 billion for the quarter. More than 85% of our $105 million of revenue growth or $89 million came from our international operations. International volume grew $70 million or 2.8% and favorable foreign currency translation contributed $66 million. For the quarter, approximately 54% of our revenue came from outside the United States. For those participating in the call, who would like additional detail tables posted on our website Sealedair.com present the percentage of sales by geographic region, the components of the change in net sales by business segment and by geography, and the impact of foreign currency translation on sales by geographic region. Moving to our statement of operations, the company's gross profit was a record $344 million for the fourth quarter compared with $339 million in the fourth quarter of 2006. Food Solutions gross profit grew $7 million and Food Packaging gross profit grew $3 million. Strong sales volume growth and price mix gains in both food segments more than offset higher resin prices. Protected packaging gross profit declined $5 million and the other category declined $1 million compared to the fourth quarter of 2006. Both of these segments experienced lower unit volumes before factoring in the impact of acquisitions and divestitures. And they both had an unfavorable combination of price and mix. Without the topline support, Protective Packaging and the Other category were unable to offset higher resin costs in the quarter. Moreover, our specialty films product line in North America included in the Other category experienced some of our most pronounced resin increases as a percent of revenues. The total company, resin costs in the quarter were $19 million higher compared to the prices paid for resins in the fourth quarter of 2006. The selling price…

Thank you very much Dave. Operator, I would now like to open up the call to questions from participants. Question and Answer

Thank you. [Operator Instructions]

First question operator.

Ghansham Panjabi with Wachovia.

Hi guys, good morning.

Good morning.

Given all the resin price increases that are currently out there and they were implemented in the fourth quarter and given your own selling price increases that you spoke about, is it fair to assume that you might be behind in the price [inaudible] in the first quarter and maybe catch up quickly second quarter onwards? How should we think about it?

Yes, I think that's a fair statement. I mean the price increases were announced and it is interesting the outlook we have for resin in 2008, kind of a flip of what it was in 2007. Remember 2007 started low and proceeded to decline, really peaking in the fourth quarter, actually with the December price increases. Given our price increase, our price announcements in late November or early December, getting those all through the system, we probably have more resin at higher cost and we have selling price increases actually in effect. So… and I think you have heard some of our peers in the space stay pretty much the same thing.

So, in your full-year guidance, Bill are you assuming that resin declines in the second half of the year or just flat with maybe 1Q levels?

If you looked at my comments, my comments say we expect we would be slightly higher in 2008 than in 2007, but to come off a little bit from where we are right now to have been in the first month of the year.

Okay, and just lastly on, can you just update us on what you think of in terms of share buy backs? You obviously generated a fair amount of cash in '07, probably in '08 as well. And certainly in '09 as your CapEx comes down, so you have a big authorization out there for share repurchases. Can you just update us on your thoughts there?

I just think the stocks are very attractive at the current price. I don't think I can say any more than that.

Okay, good enough. Thanks.

Next we will hear from Robert [inaudible] with Goldman Sachs.

Hi, good morning guys. Just wanted to talk a little bit about resin again. I know, if you could just perhaps clarify Bill. I know you said you expect overall a slight increase, but if I look at where the CMAI is for just like a benchmark polyethylene grade, on average right now, they are assuming that 2008 polyethylene is up like low double digit relative to 2007. So, I know that, that's just one of 15 resins that you buy, but I am wondering if you are taking a more aggressive view of a drop in resins than they [inaudible].

Yes, we pretty much follow, we follow CMAI, we follow a couple of different people and again polyethylene is one of 15 and is perhaps the most common and has had the most dramatic change in price, but it is… I am trying to remember the numbers, sort of 48%, less than 50% of our total resin purchases. We are probably of the view that the second half for the year polyethylene will be ... will flatten out.

Okay, okay. What's your view on the, on the current increase for polyethylene? Do you think [inaudible] for renegotiation?

Yes, just one comment on current quarter, but most of the increases in the fourth quarter actually happened.

Okay, okay and then, I guess the last part of the resin question is with all the increase you saw in… I guess in PE in 2007, when you announced the price hike at the end of the year, how much of the increase were inflation in 2007 you were trying to recover? When would have been the last time that you raised price?

We raised prices earlier in 2007. I don’t remember the exact date.

That was in range of September.

Yes, in September, in September we also had certain product lines got an increase in September, that was from Amanda. Yeah. So, we have an increase in September in certain products and then it followed up in December on other products as well as some of the polyethylene-based products that also had an increase in September.

Okay, okay. So, the current increase like the latest one announced just covers basically like the last three months or so of the year?

Correct. Our view is that we've essentially with the announced increases have covered the announced resin increases at this time.

Okay, okay. Okay, a separate topic on the Global Manufacturing Strategies since the timing of the cost savings was pushed out a little bit. Is that just fully related as I think you alluded to delays in construction, or is there any read across maybe market, there is not enough demand or you don't see much growth in those markets?

I will ask David to comment on it, but I will tell you I wish I could get the plant sooner, we are sold out in a couple of products and we really need a plant. But Dave, why don’t you finish off there.

Yeah, if you take the savings that we are now projecting in 2009 of $45 million as a ratio to the $200 million that we are going to be spending between capital and other cost, that is right in line with the earlier numbers of $250 million of spending and $55 million to $60 million of savings. So, it's really been a fine tuning over the three-year course of implementing this phase of the strategy and the… we still even though we are spending less money expect to get to the low end of that 55 to 65 range in 2010 and that is... that delay is attributable to the issues we had mentioned previously in Central Europe. The ability to take possession of the real estate was delayed as we negotiated for various benefits. And that's all taken care of, ground has been broken, construction is underway. So, we are on track on a going-forward basis.

Okay. And just final topic on that. The only reasons that the expense is related to that strategy are coming in a little bit lower cost, basically?

I would say it's more of the real world has overtaken our upfront estimates.

Okay.

We do try to be appropriately conservative, particularly on a project of this magnitude when we introduced it back in 2006.

Okay, all right, thanks very much guys.

Next question operator?

Next question will come from Claudia Hueston with JP Morgan. Claudia Hueston – JP Morgan: Hi, thanks very much. Good morning. I just wanted to talk a little bit about the other segment. I guess I'm still sort of adjusting to the reportings filed here. And the margins in the segment have sort of jumped around a lot. And I just wondered if you could help me understand what's driving this volatility and then how we should think about the margins there going forward. I mean I understand it is just about that better over time and this has been a lot of sort of quarter-to-quarter volatility there? Thanks.

Other includes a variety of businesses, let me just run through each of them. One is specialty materials, which have been affected by the transaction where we purchased the ETHAFOAM product line from Dow. It also includes our medical business. We also did an acquisition in.2007. It includes our renewable products where essentially we are investing for the future, sales are relatively modest. So, that's a negative effect on overall margin segment for the business and the fourth is a new technology we acquired early in '07. NanoPore, which is a super insulation material, again which is a net investment, and I think what you're seeing in the volatility of margin line is more of the spending on the investments and less the sales growth of the two businesses, specialty materials and medical, which are further down the maturity curve. That is about the simplest way to explain it Claudia. Claudia Hueston – JP Morgan: That's helpful, and so as I think about sort of 2008, probably looking at more of sort of how the fourth quarter played out is probably a better base to be looking at than necessarily the first quarter of last year just given that you have acquired these businesses, and the investments are sort of going forward in some of the others, is that right?

I'm not sure the fourth quarter is anymore representative. I think once you look at the number for the year, the full number, because that balances out some of the bumps that happen when you are spending on new technologies. Claudia Hueston – JP Morgan: Okay, that's really helpful. Thank you very much.

Ingalls & Snyder, Rosemarie Morbelli has the next question. Rosemarie Morbelli - Ingalls & Snyder Llc: Hi, good morning all.

Good morning Rosemarie. Rosemarie Morbelli - Ingalls & Snyder Llc: Just following up. Hello.

Rosemarie.

Rosemarie, please press star one at this time.

Well, we've lost Rosemarie for some reason.

Yes, please go ahead Ma'am. Rosemarie Morbelli - Ingalls & Snyder Llc: Can you hear me now?

Yes, we can Rosemarie. Rosemarie Morbelli - Ingalls & Snyder Llc: Alright, I should be on TV with that. When… just following up on the segment question. If you eliminate the impact of the different acquisitions during the year, would the margin of the existing businesses have actually improved '07 over ‘06?

Dave.

Yes, as Bill indicated, the acquisitions as well as the spending on new projects, the new ventures had a significant impact. I can't say that in the fourth quarter, there was as I indicated in the prepared remarks an impact in our North American foam business related to volumes in resins. That I think had a significant impact on some of these other factors in the quarter's performance. I don't have an answer at hand, Rosemarie, for you on the year-to-year comparison given the number of things that took place during the year in that segment, but if you would like to follow up with us after the call, we will try to pass through that with you.

The one thing I might say, Rosemarie, and this is just sort of back in the envelope is that if you take out the new ventures out of that and look at the medical and the specialty materials by themselves, specialty materials business is pretty dependent on polyethylene as one of its principal raw materials for polyethylene specialty foams and that was substantially higher in the fourth quarter of '07 than in '06. So, in that particular part of the other category, you would have seen a lower operating margin in '07 than in '06. Yes, that would be the case. Rosemarie Morbelli - Ingalls & Snyder Llc: Okay. And in your expectations for 2008, Bill, do you just have a slowdown or flattish North American business or even slightly down or do you actually have a full fledged recession with its impact, whatever impact it is going to have on the global economy, the low end of your range?

Well, that's the economist question of the year. My own personal view, and it is my personal view, is that we will see very slow growth in the US. I am not sure it will turn negative. We will also see a slower growth in Europe, but I don't think a recession, but that's again my view. Rosemarie Morbelli - Ingalls & Snyder Llc: Okay. And that is... is that the worst case scenario, which you have at the low end of your range?

That could be yes. Rosemarie Morbelli - Ingalls & Snyder Llc: Okay. I'll get back on queue.

Okay thanks. Ross?

Yes, good morning.

Good morning.

I just had a couple of questions. Bill, could you just talk a little bit more about Food Solutions. If I heard you correctly, I thought you said that you think you've 10% to 15% organic growth ex-currency acquisitions over the next several years, does that apply to 2008 as well. And could you just elaborate on the drivers a little bit more there?

Yeah, the drivers are... I mean Food Solution is basically taking us into a space that we really never had a big footprint, and as you may have heard me say when I outlined where we wanted to take the food part of our business, is we are very well established with a very solid footprint and market presence in kind of prepare at home foods. We got a... we have been in that segment for a long time. But as more and more food consumption is either eating outside the home or eating away from home or prepared outside the home and brought in, it's a market that we have really had a very small footprint, and then two years ago, we decided it was a real growth opportunity and we have identified ready meals and food service and prepared meals as segments, where there was a real opportunity for us to grow and whether it’s institutional feeding with bulk packaging of mashed potatoes and cream spinach, which we do for a lot of the food service outlets, we do QSRs, we do table cloth restaurants, we do institutions as well as some of the new products we introduced Pizza Fresh which is an overwrapped fresh pizza that supermarkets are selling. We have got some applications for frozen pizza trays. It’s just a relatively fast-growing segment and our 10% to 15% number, we feel is a pretty good place to be. We've also introduced in this segment aseptic packaging which gets at a segment of the market where there is really no player which is an aseptic package, that is greater than two leaders, on up to 20 leaders where we think that's an opportunity as well as retort packaging, which [inaudible]. It’s an alternate to the can. So, for us we see all of those as opportunities where we can take our technology. We are seeing good reception in most parts of the world, we're doing rice and beans in Mexico, we are doing chilly in the United States, we are doing tomato pasta sauce in Europe, offer institutional feeding and it is... I think it is an exciting segment for us to be in.

Okay.

These are 10% growth.

Pardon me Bill.

That's how we see the 10%.

Yes, okay. Thank you for that. And then a follow-up question. You pulled out $7.5 million of advisory expenses, which you said are incurred prior to ceasing work on an acquisition. Can we assume that you're not contemplating a large acquisition at this time?

Let me say that the company has always looked at acquisitions. At the end of the day, we make our decisions on value on return to shareholders. Our goals in an acquisition are to increase our global footprint, to reduce our dependence on fresh meat, to reduce our dependence on the polyethylene cycle, and we look at businesses, which present those opportunities. If at the end of the day, the numbers don't work for either the shareholders or the company, we cease pursuing that particular transaction. That's about all I can say.

Thanks a lot.

[inaudible] has the next question.

Hi, good morning. Just a follow on the last question, you guys have talked about in previous conference calls that the pilots they are going on with Case-Ready and vertical pouch packaging, can you talk a little bit about, Bill, how many pilots you have going on, the status of those pilots, and then as a part of your comment, you also talked about Mirabella. Can you talk about what the status is with that product?

Actually I go beyond pilots, we are commercial on everything I have said. I mean I said in my prepared comments overall Case-Ready is $450 million plus business, another double-digit growth rate in '07. We continue.. we continue to expand the Case-Ready formats. I think we have [inaudible] Mirabella being the latest which is what I particularly like, because it addresses one of the concerns with the earlier Case-Ready formats, where... if you remember, if you look at the supermarket, you see the current Case-Ready formats have a very high tray for a lid on top of it. Mirabella allows you to reduce the profile of the tray. The film actually goes across the meat, it maintains its red bloom, you do get longer shelf life and you really reduce material usage, so it is not only a lower cost pack, but it is a better environmental pack. We have only got one supermarket commercial on it, but if you look at the $450 million of Case-ready, there's a variety of tray lid, there is Mirabella, there is Darfresh, there is Darfresh bloom, there is a whole variety of offerings that make up that $450 million of Case-Ready. So, maybe that is one beyond the pilot, so is vertical pouch. Vertical pouch is a business that we are continuing to grow into, invest in, where we have got aseptic formats, we have got retort formats, we have got refrigerated formats, and again that business grew at 16% in 2007. So those are fully commercial products.

Yeah, maybe I just want to try to ask that question a little bit differently to understand what you're saying, but I think last quarter you had kind of alluded that there were a number of pilot programs and what I'm getting at is, just the number of incremental opportunities that you see out there, with people that maybe haven't used these products before. What are they looking at in giving you in terms of feedback and readiness to move forward?

Well, Mirabella pilot was one company, we have now got three retailers. Darfresh bloom is new, we have got… there we do have pilot customers. We've got a [inaudible]. Maxine Spencer really like the environmental aspects as well as the ease of handling and machine ability. [Inaudible], which is another way of displaying fresh cold cuts and cheeses, which has been partnered in North America and Latin America. Those are still being well received. I mean we haven't... I haven't pulled the plug on any of our new product offerings at this point, maybe that's a simple way of saying it, yes.

Okay. Great. And then just one other question. Tyson talked the other day about raising prices substantially. Kraft their dairy prices announced this morning were 40% up. Can you talk a little bit about as those companies continue increase pricing and you see pricing in general go up, what's the impact on your business and mix from those higher cost?

Well, to the extent that the Tysons and the Krafts are our customers and you have seen. And it doesn’t surprise anyone that there has been a worldwide increase in food prices, whether it's in North America or China where pork is up 40% or parts of Europe where dairy. And I think the fact that our customers are raising prices improves their profitability, which makes them stronger customers to our offerings.

Great. Thank you.

Mark?

Hello.

Yes. Mark?

Yeah, Bill, it's Mark Wilde. Just when you walked us through all of those segment outlook this morning, with everyone you talked about getting margins up and I wonder if we just look at this supplemental sheet that you've provided us this morning. If you go back to 2003, your EBITDA margins for the company were up around 20.5%. On this last year, you are little over 16, what do you think is a reasonable kind of bogie that we might look for over the next two or three years?

Let me start. I mean one of your colleagues mentioned that there has been a multiyear climb in petrochemical feedstocks and what as... whether they stabilize or whether they decline, I think Mark the vehicle we need is some stability to get those margins back. Right now, we've been chasing the rising prices like many people in our space. And as you heard me say, it doesn’t matter unless the absolute price of the risen than the stability of it. And I still believe that the business has the capability to get to 18% plus. 20% might be a longer-term target as we bring on some new non-petrochemical based components and yet one of our goals is to build our portfolio to longer-term, reduce our dependency on the petrochemical feedstock cycle. But in my view, some stability over a period of time in petrochemical feedstock will give us the ability to get to an 18% kind of plus EBITDA margin.

Okay. This is a follow-on Bill, again the supplemental tables, I noticed that the growth rate in the fourth quarter in Latin America and Asia-Pacific was quite a bit lower than your full year growth rate. Should we make anything of that, is there any deceleration that you're seeing in those parts of the world?

Not really. I mean I haven't seen anything. There is this whole question of whether the US slow down is going to affect some of our major trading partners. And Mexico is one of our larger businesses in Latin America and of course they're very close trading partner to the US. In Asia Pacific, I think you're primarily seeing Australia where essentially their beef export; a lot of their meat exports have been adversely affected by the strengths of their currencies. That is necessarily a slowdown in the economy, but their currency, the appreciation of their currencies have made them less competitive on the global market. So, they probably lost meat share to other parts of the world including Brazil.

Okay, thanks. Well, that's very helpful.

[inaudible].

Yes. Hi, just a little confusion on, you guys always break out this global manufacturing systems and try a strategy and try and explain it as thoroughly as you can. I understand that. But I'm just curious as to how it is supposed to show up in the income statements. You guys talk about $3 million in this quarter being... and then, I'm talking about the excess over CapEx now, what you're charging on the income statement? You claim $3 million in this quarter, but it doesn't show up as a charge. Now we're talking about $30 million this year and I'm just wondering if we're going to see $7 million as a separate line item charge or is it just going to be embedded in the line item. And then my follow on question to that is the number never seems to hit... I always think this $100 million number is a really big number. The number never seems to come close to getting to the numbers that you guys gave in terms of... they're a lot lower which is a positive. But can you explain to me are they really going to get to that number, I mean is it just a very conservative number? So, that was the second question.

I'll ask Dave to respond to that.

The total expense we're referring to here, the other cost that go through the P&L, and back in 2006, when we introduced this strategy, we pegged that spending at $90 million to $100 million. The elements that make up that spending are training of the workforce at these new plants, the inefficiency as those plants build capacity up to full utilization, costs of reducing employment or rearranging equipment at existing facilities, and in the case of a plant we closed early in 2007 restructuring and closure cost. So, there are a number of costs that go into the estimated $90 million to $100 million. The number this year was $12 million; we've run about $3 million a quarter on that. It's not significantly out of line; it is actually a little bit less than the spending in 2006. The spending that we're projecting to go through the P&L in 2008 is $30 million. If we didn't think that was the right estimate, we would have provided a lower number. We always caveat that, these decisions underlying the timing of these investments are subject to change and that some of these expenses may move into a future period or may get eliminated altogether. But for modeling purposes today, we are guiding that. Those expenses are going to approximate $30 million.

Okay, thank you Dave. Operator, I am going to take a few questions that came in over the Internet, and I will read the question and then I will answer it. First question came in over the Internet says, looking at your Asia-Pacific sales of $600 million, how much of that relates to food packaging versus medical and how would you describe your forward three-year sales goals in that region for food packaging and medical? The break down right now in that part of the world, it's about 68% of the sales were in the food business, about 25% of the sales are in the protective business, and the balance which should be about 7% is in the other category, which combines specialty materials and medical. Our expectation for growth in that region and I will separate the region into two parts, because the Asia part and the Pacific part, I think have two different profiles. The Pacific part, which includes our business in Australia and New Zealand are more mature and probably more consistent with the guidance I gave for the mature food packaging business in the 4% to 6% range. I would expect the Asia part of that business, both in food and in medical to continue to grow at double-digit rates for the next three years. Second question coming off of the Internet says, the global manufacturing charge of $3 million is included in what particular operating segment? The $3 million is, $2.3 million of that is in food packaging, $0.5 million or 500,000 is in protective, and $0.2 million or 200,000 is in other. Next question is you have $300 million worth of Senior Notes coming due in April. Do you plan to pay it off with cash or draw in your revolver? Dave, would you answer that one?

One or the other. It is a dollar denominated issue. So, we will need cash in the US to pay that off. There are tax implications involved in repay trading cash into the US. So, we will be making a determination over the next couple of months as to the most efficient source funds to retire the notes. My best guess right now is it's going to be a mix of some of the cash that we have on the balance sheet and borrowings, both on our committed revolving credit facility and our accounts receivable securitization facility.

I think just to add positive comment to Dave's reply is that, I do feel very confident that even in the troubled financial markets of today, Sealed Air does have the ability to issue debt. Let me take another question from the Internet, if I can. It is a far away from where I am sitting. Is Sealed Air currently participating in any Grace related settlement discussions, would you be surprised if a settlement is not announced in the next six months? No quarter goes by without one question on that. The answer is no, we are not involved with any settlement discussions with Grace at the present time. We do know there is hearings going on, and I am not close enough to know the outcome or the progress of those, so I think that's better left to people more knowledgeable than I am. As far as the likelihood of the settlement, Dave has commented every year for the last six years, it is always at least a year away and I see no reasons to change our view on that. Okay I think we are just about out of time. If I could take one more question from the Internet, because I see on the telephone we are getting repeats. Okay, I'm trying. Someone asked about our resin purchases as either a percent of sales or percent a cost of sales. We don't really talk about that, but I just eyeballed the numbers and it's less than 40% of our cost of sales and that is about as kind of granular that I wanted to go. Okay. I think some of the others begin to repeat. Can we go back to the telephone line? I don’t know if we heard from George Staphos yet. George, can I take your question?

Is my phone on Bill? I would like to get one question in. Hi guys, good morning, congrats on the year. I guess a couple of questions very quickly. It would appear that global manufacturing cost is something on the working capital in the quarter. I jumped on a little bit late in the call, but I did hear some of your discussions Dave. Could you put a number on that or what you think the working capital billed will be involved in implementing global manufacturing and that's hopefully goes reverse in years coming up?

Well, actually George, I think one of the highlights certainly from the CFO seat in the quarter was the $22 million reduction in inventory. Despite the start up of operations in China and sort of the ongoing increase in operating activity in Mexico, there is a...

I understand that, but my point is was there some billed even with those good numbers that will ultimately accrue back to you overtime, once the GMS is more fully operational?

I think the answer is yes. In talking about GMS, we've commented that we are currently supplying significant demand in these growing areas of the world with exports from the US and to a lesser extent Western Europe. That's a very long supply chain, when you consider that inventory on transit as well as the additional inventory that we have to warehouse as a safety stock in these markets. As we expand our local production, we can take significant work in process and finished goods inventory out of the system. So, the expectation would be that as production at these sites ramps up, while there will be some additional inventory related to maintain those plans that the overall impact on our working capital will be favorable.

Okay. Question on acquisition. Tagging along on an earlier question. Presumably you are always looking at acquisitions as you already said that. I don't know if it's Bill, Mary or Ryan shuttling around going target-by-target, but traditionally you had a pretty low key approach on that type of work, and I guess. I think I know the answer here, but what color can you share in terms of why you decided to just close that in this quarter? You had some cost associated with transactions that ultimately didn't materialize?

I am not sure I understood the question George.

Well, you are always looking at acquisition, why this quarter did you decide to reflect on the cost associated with one that didn't across the goal line?

Well, I guess the simple reason is that it was a pretty meaningful number, which would suggest we may have gotten pretty far down the path before we saw it... ceased the process and that's basically the only reason. Most of the... most of the transactions we look at you can pretty much make a decision relatively early in the process before you've committed a lot of resource to it. In this case that wasn't the case.

I guess that is also a way of conveying that, whatever process might be ongoing is now formally closed. I guess last thing… I know you said that we've raised the settlement and reorganization, you are not close enough to the hearings right now to know what might be occurring, but have you picked up at all from your contact whether there might be any curve balls coming relative to what had been your previously agreed to settlement with the assessment plaintiff. Thanks guys, good luck in the quarter.

George, as far as the Grace issue, the various plans, even the plaintiff’s plans do recognize our settlement as part of any proposed reorganization, I haven't seen anything other than that.

Okay, thanks very much.

Okay, we just have two left out there. Rosemarie I can't resist taking your second call. Rosemarie Morbelli - Ingalls & Snyder Llc: Oh well, that is very sweet of you, I appreciate it. You said something regarding the slower rate of slaughter, and that you were actually… you know, your red meat sales or sales to red meat packaging were growing faster than the slower rate. Do you think that there is some... I don't know frozen inventories being built up, and at some point you'll will catch up with the slower rate or are you really getting so many more accounts that even in a slower slaughter environment, you can still grow faster than that?

Yes, I think the short answer Rosemarie is we've been very successful at gaining business in a slower slaughter environment, that's the simple way of saying it. Yes. Rosemarie Morbelli - Ingalls & Snyder Llc: And if I may follow up on that, if my memory serves me right, the margin on packaging red meat is higher than that of the other proteins, particularly chicken, but I guess it is also slower than for pork. As we go into a slow environment and maybe recession, do you see some kind of change in mix and therefore we would see a lower margin on your Food Packaging?

We went through 2001, if you remember that tech sort of recession in 2001, and I think I might have made the same comment in 2001, and you'll probably have it in your notes somewhere, is that to the extent people who are consuming less beef we were able to make it up on chicken and poultry, even though you are right. It is a lower margin packaging, because less technology goes into packaging poultry than in beef. I think you've heard me say a number of times, the hierarchy of profitability is beef, pork and chicken. But don't forget ground beef. Ground beef is oftentimes just as accessible and just as desirable as chicken in periods of economic slowdown. And what I've also learned is one of the faster growing foods in economic slowdowns is pizza, be it frozen or chilled pizza. So, if you see people ordering more pizza Rosemarie, hold on to your wallet. Rosemarie Morbelli - Ingalls & Snyder Llc: Oh, fine, I will, thanks a lot.

Okay, one more last question from Mark, if you are still there?

Yeah, I am. I just have been watching all these stories on... you know the pressure on plastic grocery sacks, I guess the Chinese are talking about banning them. Is there something structurally different going on here you think that kind of affects the whole packaging business, particularly the plastic side of the equation or is it just kind of noise?

No, no, I think, no, I think, Mark, I am not sure we've reached the tipping point, but you kind of get there over time, and when it happens, you never know what it was till after it has happened. But having been through a number of environmental cycles over the years, I think this one may have more substance than in the past, which is why we've invested in renewable products. We got two renewable offerings both based on annually renewable crops. One is based on PLAs, which is polylactic acid, which is basically polymerized corn and there is demand for that. We are essentially sold out. We basically can sell everything we can make. Our other is from our new startup, Biosphere where we are continuing to approach the market from kind of a different end with a different technology. The advantage of the Biosphere product is it's not in the food chain. There is longer-term concern about corn-based plastics as being a conflict in the food chain which is yet to be settled out, but that's why I think our second technology, which is based on a non-food chain product may end up also being viable. So, no, we are investing in both of those technologies. In fact we've just invested capital to expand our capacity to make PLA trays. So, we see it as an important component of our business and something we not only need to be sensitive to, but we've got to make it part of our strategy. One of the company's strategic goals in 2007 which we sat down with the managing group a year ago and so we wanted to introduce at least one sustainable product by the end of 2007, we actually have two. So, clearly it's high on our priority list, and we think it will be an important component of our business going forward.

Okay, that's good. That's the kind of response I was listening for, thanks Bill.

Okay. Operator, I would like to wrap up here and I want to thank all of you for participating in the call today. I'd also like to thank all of our employees and partners around the world for your efforts and hard work in 2007. I know it was a challenging year, but everybody remained focused. You all continued to execute our plans and contributed to our success and the momentum that we carry into 2008. We will continue to drive sustainable, profitable growth in the New Year, with leading product innovation. We'll continue to build upon our leadership position globally, by furthering our presence in the BRIC regions as well as the more developed regions of the world. And we will continue to deliver shareholder value as we reduce costs and continue to generate significant cash flow. We have successfully navigated to the challenging conditions before and demonstrated our ability to insolate our business from downturns. We have continued to build upon these strengths, which have served us well during the year and will continue to serve us into 2008. It is for these and many more reasons that I am very happy and proud to be a Sealed Air shareholder. Thank you all for taking your time to listen to us today.

And that does conclude today's teleconference. We would like to thank everyone for their participation and wish everyone a great day.