TREDEGAR REPORTS SECOND-QUARTER RESULTS

RICHMOND, Va., August 3, 2005–Tredegar Corporation (NYSE:TG) reported second-quarter income from continuing operations of $2.1 million (5 cents per share) compared to $5.2 million (14 cents per share) in 2004. Earnings from manufacturing operations were $9.8 million (25 cents per share) versus $10.6 million (27 cents per share) last year. Second-quarter sales were up to $243.7 million from $216.1 million in 2004. A summary of second-quarter results from continuing operations is shown below:

Norman A. Scher, Tredegar’s president and chief executive officer, said: “Second-quarter profits in films improved over last year due primarily to growth in new apertured, elastic and surface protection materials. However, despite lower resin costs second-quarter profits declined from the previous quarter due to a recent slowdown in the growth of elastics and lower volume in certain other products. Looking ahead to the second half of 2005, the slowdown in the growth of our elastics business is likely to continue through year-end and resin costs are expected to increase. As a result, 2005 profits in films may not exceed last year’s level.”

Scher added: “In aluminum, we were encouraged by results in U.S. operations, but overall profits continue to be hurt by appreciation of the Canadian Dollar and higher energy costs. If these conditions persist, it will be difficult to improve upon last year’s profits.”

MANUFACTURING OPERATIONS

Film Products

Second-quarter net sales in Film Products were $111.2 million, up 10% from $101.5 million in 2004. The sales increase was due primarily to higher selling prices which were driven by the pass-through of higher raw material costs. Growth in higher value new products and foreign exchange rate changes also contributed to the increase in sales. Operating profit from ongoing operations improved to $11.4 million, up 5% from $10.9 million last year. Volume was 64.3 million pounds, down 10% from 71.2 million pounds last year.

Compared to the first-quarter ended March 31, net sales and operating profit from ongoing operations declined 5% and 2%, respectively. Volume was down 5%.

The decline in operating profit in the second quarter from the first quarter of 2005 was due to a slowdown in the growth of elastics and lower volume in certain non-elastic diaper-related components and packaging film. The adverse impact of these items was offset by lower resin costs in the second quarter compared with the first quarter of this year.

In the second quarter of this year, lower average resin prices resulted in a positive operating profit impact of approximately $1.5 million compared with the first quarter of 2005. Low-density polyethylene resin in the U.S. declined about 6 cents per pound from first-quarter levels. Resin prices in Europe and Asia also declined. Tredegar expects resin prices to increase during the second half of 2005. The films business has pass-through or cost-sharing agreements for the majority of its sales. However, under certain agreements, changes in resin costs are not passed through for an average period of 90 days.

Growth in new apertured topsheets and surface protection films is expected to continue into 2006. Demand for elastics should improve in 2006 as personal care product suppliers use more elastic materials to improve comfort and fit in diapers and adult incontinence products.

Year-to-date net sales were $228.0 million, up 16%, versus $197.4 million in 2004. Operating profit from ongoing operations was $23.0 million, up 10%, compared to $20.9 million in 2004. Year-to-date volume decreased to 131.7 million pounds from 140.3 million pounds.

Capital spending in Film Products through June 30 totaled $28 million and is expected to be approximately $55 million for the year, and includes capacity expansions for apertured and elastic materials and surface protection films and a new global information system.

Aluminum Extrusions

Second-quarter net sales in Aluminum Extrusions were $126.0 million, up 16% from $109.0 million in 2004 due to higher selling prices, which were driven by higher metal costs. Operating profit from ongoing operations declined 13% to $7.2 million, down from $8.3 million in 2004. The profit decline was due primarily to appreciation of the Canadian Dollar ($1.2 million) and higher energy costs ($900,000). Second-quarter volume was 63.4 million pounds, up slightly from 62.0 million pounds in 2004.

A relatively strong performance in U.S. operations, driven by commercial construction activity and higher sales of hurricane shutters, was offset by softer demand across all Canadian markets.

Year-to-date net sales were $235.9 million, up 16% from $204.2 million in 2004. Operating profit from ongoing operations for the six-month period declined 15% to $10.2 million from $12.0 million in 2004. Year-to-date volume increased slightly to 121.8 million pounds from 120.0 million pounds in 2004.

Through June 30, capital expenditures totaled $8 million and are expected to be approximately $15 million for the year.

THERICS

On July 1, Tredegar announced that it sold or assigned substantially all of the assets of Therics, Inc., a developer and marketer of orthobiologic products, to a new company controlled and managed by Randall R. Theken. The new company, Therics, LLC, is part of a family of orthopedic medical device companies founded by Mr. Theken, including Theken Spine, LLC. In addition to receiving potential future payments on the sale of Therics’ products, Tredegar retained a 17.5% equity interest in Therics, LLC and received a 3.5% interest in Theken Spine, LLC.

The second-quarter operating loss from ongoing operations at Therics was $1.6 million compared to a loss of $2.5 million in 2004. Net sales were $115,000 for the quarter versus $120,000 last year. The year-to-date operating loss was $3.5 million compared to $5.0 million in 2004. Year-to-date sales were $252,000, up from $131,000 in 2004.

OTHER ITEMS

Second-quarter results include a net after-tax charge of $7.0 million (18 cents per share) for plant shutdowns, asset impairments and restructurings, primarily associated with charges related to the divestiture of Therics. The charge for plant shutdowns, asset impairments and restructurings for the second quarter of 2004 was $4.0 million (10 cents per share). Results also include gains from the sale of assets and other items of $417,000 (1 cent per share) compared to $268,000 (1 cent per share) in 2004.

Year-to-date net after-tax charges for plant shutdowns, asset impairments and restructurings were $8.3 million (21 cents per share). Comparable charges in 2004 totaled $11.0 million (29 cents per share). The year-to-date gains from the sale of assets and other items was $1.8 million (5 cents per share) compared to $4.2 million (11 cents per share) in 2004.

Additional details regarding these items are provided in the financial tables included with this press release.

CAPITAL STRUCTURE

Net debt (debt net of cash) was $92.4 million, or 1.1 times the last twelve months adjusted EBITDA.

See notes to financial tables for reconciliations to comparable GAAP measures.

QUARTERLY CONFERENCE CALL

Tredegar management will host a conference call on August 4 at 11:00 a.m. EDT to discuss its earnings results. Individuals can access the call by dialing 800-772-8997. Individuals calling from outside the United States should dial 416-695-9703. A replay of the call will be available through August 11 by dialing 888-509-0082 (domestic) or 416-695-5275 (international).

Alternatively, individuals may listen to the live audio webcast of the presentation by visiting the Tredegar Web site at www.tredegar.com. The webcast of the call may be accessed by selecting the “Webcast of second-quarter results” link on the home page. An archived version of the call will be available for replay on the Web site.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

The words “believe,” “hope,” “expect,” “are likely,” and similar expressions may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our then current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. Factors that may cause such a difference include, but are not limited tothe following:

Film Products is highly dependent on sales to one customer, which comprised approximately 27% of Tredegar’s net sales in 2004. The loss or significant reduction of sales associated with this customer would have a material adverse effect on our business, as would delays in this customer rolling out products utilizing new technologies developed by Film Products.

Growth of Film Products depends on its ability to develop and deliver new products at competitive prices, especially in the personal care market. Personal care products are now being made with a variety of new materials, replacing traditional backsheet and other components. While Film Products has substantial technical resources, there can be no assurance that its new products can be brought to market successfully, or if brought to market successfully, at the same level of profitability and market share of replaced films. A shift in customer preferences away from Film Products’ technologies, its inability to develop and deliver new profitable products, or delayed acceptance of its new products in domestic or foreign markets, could have a material adverse effect on Tredegar. In the long term, growth will depend on Film Products’ ability to provide innovative materials at or below current material costs, including lowering equipment and other capital costs.

Sales volume and profitability of Aluminum Extrusions is cyclical and highly dependent on economic conditions of end-use markets in the U.S. and Canada, particularly in the construction, distribution and transportation industries. Aluminum Extrusions’ market segments are also subject to seasonal slowdowns during the winter months. The markets for Aluminum Extrusions’ products are marked by differences between the Canadian and U.S. markets. They are also highly competitive with product quality, service, delivery performance and price being the principal competitive factors. Although Aluminum Extrusions targets complex, customized, service-intensive business compared to higher volume, standard extrusion applications, Aluminum Extrusions is under increasing domestic and foreign competitive pressures. Foreign imports, primarily from China, currently represent less than 5% of the North American aluminum extrusion market. Foreign competition to date has been primarily large volume, standard extrusion profiles that impact some of our less strategic end-use markets. Market share erosion in other end-use markets remains possible.

Tredegar’s substantial international operations subject us to risks of doing business in foreign countries, which could adversely affect our business, financial condition and results of operations. Risks inherent in international operations include the following, by way of example: changes in general economic conditions, potential difficulty enforcing agreements and intellectual property rights, restrictions on foreign trade or investment, fluctuations in exchange rates, imposition of additional taxes on our foreign income, nationalization of private enterprises and unexpected adverse changes in foreign laws and regulatory requirements.

Tredegar’s future performance is also influenced by the costs incurred by Tredegar’s operating companies, including, for example, the cost of energy and raw materials. There is no assurance that cost control efforts will be sufficient to offset any additional future declines in revenues or increases in energy, raw materials or other costs.

Tredegar does not undertake to update any forward-looking statement made in this press release to reflect any change in management's expectations or any change in conditions, assumptions or circumstances on which such statements are based.

To the extent that this release contains non-GAAP financial measures, it also presents both the most directly comparable financial measures calculated and presented in accordance with GAAP and a quantitative reconciliation of the difference between any such non-GAAP measures and such comparable GAAP financial measures. Accompanying the reconciliation is management’s statement concerning the reasons why management believes that presentation of non-GAAP measures provides useful information to investors concerning Tredegar’s financial condition and results of operations.

Based in Richmond, Va., Tredegar Corporation is a global manufacturer of plastic films and aluminum extrusions.

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