Blown and Etched Glass McElheny Landscape Exhibit Opens March 20; Tulsa's Philbrook Museum of Art to Host MOMA-Exhibited Artist

Six-Month Results
For the six months ended June 30, 2005, sales increased 6.3 million from $258. Partially offsetting these increases were lower
glassware shipments to foodservice, retail and industrial customers.73 per diluted share, in the year-ago
period.54 for the fourth quarter.


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.


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 $(0.25 $0.27 $0.8%)

Selling, general and administrative
expenses (1) 20,367 17,486
Special charges (1) 4,197 -
Income from operations 2,492 15,436 (83.06) $0.

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Fuller, an inventor, engineer, architect, designer
and philosopher met the sculptor Isamu Noguchi in the late 1920s and together
they embarked upon a discourse about reflection and invisibility."
Josiah McElheny lives and works in New York.5
million from $135.5 million during the
quarter, as compared with income from operations of $15.06 per diluted share, as compared with
diluted earnings per share of $0.libbey. 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.

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.
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.

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In "Landscape Models for Total Reflective Abstraction ," McElheny drew
inspiration from an ongoing dialogue between Buckminster Fuller and Isamu
Noguchi in the late 1920s. He studied with master
glassmakers Jan-Erik Ritzman in Sweden and Lino Tagliapietra in Italy.37 for the
third quarter and $0." 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
2006.2%)

Minority interest (21) -

Net (loss) income $(2,519) $9 ,930 (125.7%)

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

(1) Refer to Table 1 for Special charges detail

LIBBEY INC .
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.V.

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Executive Director Brian Ferriso said, "This is truly a provocative
exhibit in which viewers can involve themselves and emerge with a new
reflection on their own reality. The objects on the tables
are also pared down from sculptural forms made famous by Noguchi. Isamu saw here an invisible
sculpture , hidden in and communicating through a succession of live
reflections of images surrounding it.3 million as the result of lower interest rates. 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. Its Crisal subsidiary, located in
Portugal, provides an expanded presence in Europe.

Its Traex subsidiary, located in
Wisconsin, designs, manufactures and distributes an extensive line of plastic
items for the foodservice industry.45 -
Net income per diluted share
excluding special charges $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.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.

suncatchers stankard

The exhibit opens March 20 and
McElheny is the second artist in a new Philbrook contemporary series, Focus. 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. The Company
reported a net loss of $2.

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They
wondered if it was possible to make a completely reflective surface on an
object and if, by doing so, that object would become invisible by virtue of
its total reflectivity.5 million, as compared with
earnings per share of 68 cents and sales of $135. Interest expense
decreased $0.9 million, or $0. 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. 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.06) $0.

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Produced in industrial mirror, hand blown "mirrored" glass and
other reflective materials, the design of the two "Landscape Models for Total
Reflective Abstraction" on exhibit at the Philbrook are loosely based on Isamu
Noguchi's influential table designs of the 1940s.2 million on a pretax basis as compared
to pretax earnings of $0.
This is an increase in working capital of $8. 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.
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.

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Net loss was $0.com and
http://phx.zhtml?p=irol-
eventDetails+c=64169 +eventID=1105420 .68 $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.

sandblasted dichroic

"They suggest everything from modern Italian glass design to
medieval reliquaries .9 million in the year-ago period.3 million from $171. We are very excited about this new production facility expected to be
operational by early 2007. The pretax charge for the salary reduction was $5,564 in the
second quarter of 2005.
(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. 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 .

fused trabucco

, Tulsa's Philbrook Museum of Art
will present Josiah McElheny's "Landscape Models for Total Reflective
Abstraction," made of glass reflective surfaces that create a fundamental
invisibility which evokes self-reflection. Josiah is a serious master of the invisible,
the unseen, and we are very proud and fortunate to be able to bring this
exhibit to Tulsa.8 million lower than
at June 30, 2004 ." He added, "We plan
to break ground in China on our new production facility during the third
quarter . 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.68 $(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. Summarized combined statements of
income for Libbey's investments, accounted for by the equity method
under U.

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com

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.18 per diluted share, compared with
net income of $9.

glassworks pate

"
McElheny is interested in engaging with his audience in a total visual
experience. McElheny is currently completing a Visual Artist
Residency at the Wexner Art Center, Columbus, Ohio. 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. 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. The conference call will be
simulcast live on the Internet on both http://www.8 million. Libbey believes that providing supplemental non-GAAP financial
information is useful to investors in understanding Libbey's core business
and trends.68
Diluted $(0.
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.

fused stained

His work is
included in numerous public and private collections, including the Museum of
Modern Art, New York.8 million in the prior-year
second quarter. Sales to foodservice glassware
customers were down slightly.6 million compared with $20.8 million in the
year-ago period .49 to $0. Eastern Daylight Time.'s net sales totaled
$544. 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.2 %)

Minority interest (4) -

Net (loss) income $(870) $9,365 (109.68 (108.C.

schramek suncatchers

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.9 million, or $0.2 million as compared to June 30,
2004 and includes $11.
To listen to the call, please go to the website at least 10 minutes early
to register, download and install any necessary software.

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.31 - 0.5%
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 (17.3%)

Net (loss) income per share:
Basic $(0., a domestic distributor of industrial glassware for
Vitrocrisa in the U.

beveled 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.0 percent to
$274.

Webcast Information
Libbey will hold a conference call for investors on Thursday,
July 28, 2005, at 11 a.net/phoenix.

The above information includes "forward -looking" statements as defined in
the Private Securities Litigation Reform Act of 1995.
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. In 2004, Libbey Inc.
In addition, in June 2005, Libbey reduced its North American salaried
workforce by seven percent in order to reduce Libbey's overall cost
profile.73
Special charges - net of tax 0.9%)

Selling, general and administrative
expenses (1) 38,321 34,479
Special charges (1) 7,194 -
Income from operations 2,580 20,759 (87.L.S.

stankard curls

"
"My creations blur the boundaries between art and craft," explained
McElheny.

CONTACT:
Peggy Striegel
Philbrook Museum of Art
918 748 5385, 918 740 5584 or 800 663 1136
jt@striegela.1 million in the year-ago period. 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.32 to $0.18) $0.06) $0.4%)

Net (loss) income per share:
Basic $(0.18) $0. de C.

heyden paperweights

What he saw that
others did not see was that completely reflective surfaces provided a
fundamental invisibility of the surface.

Libbey Inc. Announces Second Quarter Results

8 million in the year-ago quarter.
Pretax equity loss from Vitrocrisa, the Company's joint venture in Mexico,
was $0 .4 million of working capital associated with Crisal.

Outlook for 2005
John F. 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 . In addition, Libbey is a
joint venture partner in the largest glass tableware company in Mexico .S.

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

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Some have said they are humorously fanciful, even
romantic. Sales Up 6. 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.
Income from operations was $2.5 million, or $0.

Working Capital
Working capital, defined as inventories and accounts receivable less
accounts payable, decreased by $0.S.S.73 (124.

paperweights etched

This fundamental invisibility was
that of utterly still waters whose presence can be apprehended only when
objects surrounding them are reflected in them.
Excluding Crisal, inventories at June 30 , 2005, were $3.
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. GAAP, is shown above.

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As Fuller later described, "Isamu did not think of reflective sculptures
as shiny alternate models of negative-light sculptures. Solo Exhibitions include the Isabella
Stewart Gardner Museum, Boston, The Henry Art Gallery, Seattle, and Centro
Galego de Arte Contemporanea, Santiago de Compestela, Spain.8 million, as compared with pretax earnings of $1.2%)

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

(Loss) income before minority
interest (2,498) 9,930 (125.18) $0.73
Diluted $(0.

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TULSA, Okla.

Second Quarter Results
For the quarter-ended June 30, 2005, sales increased 6.5 percent to $144.corporate-ir.6%)

Interest expense 3,464 3,516

(Loss) income before income taxes
and minority interest (1,293) 13,964 (109.

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(NYSE: LBY)
announced that its diluted loss per share for the second quarter ended
June 30, 2005, was 6 cents on sales of $144 . The increase in sales was
attributable to the Crisal acquisition in Portugal and higher sales of World
Tableware, Traex, and Royal Leerdam products.
The Company recorded income from operations of $2.4 million in the year-
ago quarter.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. A replay will be
available for 7 days after the conclusion of the call. 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.73

LIBBEY INC.

3%)

Provision for income taxes (427) 4,599

(Loss) income before minority
interest (866) 9,365 (109. and Canada .

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5 Percent

TOLEDO, Ohio, Libbey Inc.:

-- 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. Its
Syracuse China subsidiary designs, manufactures and distributes an extensive
line of high-quality ceramic dinnerware, principally for foodservice
establishments in the United States.8%)

Interest expense 6,842 7,092

(Loss) income before income taxes
and minority interest (3,728) 14,821 (125. de R.

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His
work was included in the 2000 Whitney Biennial, Site Santa Fe, 2001 and Young
Americans at Saatchi Gallery, London.
Equity loss from Vitrocrisa was $0.8 million to $170. 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.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.L.

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1
million during the second quarter of 2005 as inventories and accounts
receivable were lower, but were partially offset by lower accounts payable.m. Libbey has recorded a pretax charge of $847 in
the second quarter 2005 and $3,844 year-to-date 2005, as detailed below.
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.

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