Avery Dennison Corporation Notified That U.S. Department of Justice Has Decided to Close Its Investigation

Avery Dennison Corporation (NYSE:AVY) today announced that it has
been notified by the U.S. Department of Justice ("DOJ") that the DOJ
has decided to close its investigation into competitive practices in
the label stock industry without any further action. The Company
disclosed the investigation in April 2003.

Avery Dennison Corporation is a global leader in
pressure-sensitive labeling materials, office products and retail tag,
ticketing and branding systems. Based in Pasadena, Calif., Avery
Dennison Corporation is a FORTUNE 500 company with 2005 sales of $5.5
billion. Avery Dennison Corporation employs more than 22,000
individuals in 49 countries worldwide who apply the Company's
technologies to develop, manufacture and market a wide range of
products for both consumer and industrial markets.

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:

Certain statements contained in this news release are
"forward-looking statements" intended to qualify for the safe harbor
from liability established by the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements and financial or other
business targets are subject to certain risks and uncertainties.
Actual results and trends may differ materially from historical or
expected results depending on a variety of factors, including but not
limited to fluctuations in cost and availability of raw materials;
ability of the Company to achieve and sustain targeted cost
reductions; foreign currency exchange rates; worldwide and local
economic conditions; impact of competitive products and pricing;
selling prices; impact of legal proceedings, including the European
Commission ("EC"), Canadian Department of Justice, and Australian
Competition and Consumer Commission investigations into industry
competitive practices, and any related proceedings or lawsuits
pertaining to these investigations or to the subject matter thereof or
of the recently concluded investigation by the U.S. Department of
Justice ("DOJ") (including purported class actions seeking treble
damages for alleged unlawful competitive practices, and purported
class actions related to alleged disclosure and fiduciary duty
violations pertaining to alleged unlawful competitive practices, which
were filed after the announcement of the DOJ investigation, as well as
a likely fine by the EC in respect of certain employee misconduct in
Europe); impact of potential violations of the U.S. Foreign Corrupt
Practices Act based on issues in China; impact of epidemiological
events on the economy and the Company's customers and suppliers;
successful integration of acquisitions; financial condition and
inventory strategies of customers; timely development and market
acceptance of new products; fluctuations in demand affecting sales to
customers; and other matters referred to in the Company's SEC filings.

The Company believes that the most significant risk factors that
could affect its ability to achieve its stated financial expectations
in the near-term include (1) potential adverse developments in legal
proceedings and/or investigations regarding competitive activities,
including possible fines, penalties, judgments or settlements; (2) the
impact of economic conditions on underlying demand for the Company's
products; (3) the impact of competitors' actions, including expansion
in key markets, product offerings and pricing; (4) the degree to which
higher raw material and energy-related costs can be passed on to
customers through selling price increases (and previously implemented
selling price increases can be sustained), without a significant loss
of volume; and (5) the ability of the Company to achieve and sustain
targeted cost reductions.

For a more detailed discussion of these and other factors, see
"Risk Factors" and "Management's Discussion and Analysis of Results of
Operations and Financial Condition" in the Company's Form 10-K, filed
on March 15, 2006, and Form 10-Q, filed on August 10, 2006, with the
Securities and Exchange Commission. The forward-looking statements
included in this news release are made only as of the date of this
news release, and the Company undertakes no obligation to update the
forward-looking statements to reflect subsequent events or
circumstances.