**EXHIBIT 12**

 

OWENS-ILLINOIS GROUP,INC.

COMPUTATION OF RATIO OFEARNINGS TO FIXED CHARGES

(Millions ofdollars, except ratios)
| ** **                                                                                          | ** ** | **Years ended December 31,** | ** ** |
|-----------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                          | ** ** | **2006**                                    | ** ** | **2005** | ** ** | **2004** | ** ** |
| Earnings from  continuing operations before income taxes and minority share owners’  interests |       | $                                           | 262.6      |   | $ | (83.6 | ) | $ | 362.9 |   |
| Less: Equity earnings                                                                               |       | (25.7                                       | )          | (22.6 | ) | (27.8 | ) |
| Add: Total fixed  charges deducted from earnings.                                                   |       | 498.0                                       |       | 479.7 |   | 489.1 |   |
| Proportional  share of pre-tax earnings of 50% owned associates                                     |       | 7.9                                         |       | 8.9 |   | 11.0 |   |
| Dividends received  from equity investees                                                           |       | 45.0                                        |       | 11.0 |   | 12.8 |   |
| Earnings  available for payment of fixed charges                                                    |       | $                                           | 787.8      |   | $ | 393.4 |   | $ | 848.0 |   |
| Fixed charges  (including the Company’s proportional share of 50% owned associates):           |       |                                        |       |   |   |   |   |
| Interest expense                                                                                    |       | $                                           | 475.3      |   | $ | 450.7 |   | $ | 460.0 |   |
| Portion of  operating lease rental deemed to be interest                                            |       | 9.8                                         |       | 13.0 |   | 14.2 |   |
| Amortization of  deferred financing costs and debt discount expense                                 |       | 12.9                                        |       | 16.0 |   | 14.9 |   |
| Total fixed  charges deducted from earnings                                                         |       | $                                           | 498.0      |   | $ | 479.7 |   | $ | 489.1 |   |
|                                                                                                |       |                                        |       |   |   |   |   |
| Deficiency of earnings  available to cover fixed charges                                            |       |                                        |       | 86.3 |   |   |   |
| Ratio of earnings to fixed charges                                                                  |       | 1.6                                         |       |   |   | 1.7 |   |

 

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| ** **                                                                                                                                  | ** ** | **Years ended December 31,** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                                                                  | ** ** | **2003**                                    | ** ** | **2002** | ** ** |
| Earnings from  continuing operations before income taxes, minority share owners’ interests  and cumulative effect of accounting change |       | $                                           | 12.0       |   | $ | 412.5 |   |
| Less: Equity earnings                                                                                                                       |       | (27.1                                       | )          | (27.0 | ) |
| Add: Total fixed  charges deducted from earnings                                                                                            |       | 440.6                                       |       | 384.9 |   |
| Proportional  share of pre-tax earnings of 50% owned associates                                                                             |       | 8.1                                         |       | 13.3 |   |
| Dividends  received from equity investees                                                                                                   |       | 31.1                                        |       | 29.2 |   |
| Earnings  available for payment of fixed charges                                                                                            |       | $                                           | 464.7      |   | $ | 812.9 |   |
| Fixed charges  (including the Company’s proportional share of 50% owned associates):                                                   |       |                                        |       |   |   |
| Interest expense                                                                                                                            |       | $                                           | 415.4      |   | $ | 356.1 |   |
| Portion of  operating lease rental deemed to be interest                                                                                    |       | 10.8                                        |       | 12.7 |   |
| Amortization of  deferred financing costs and debt discount expense                                                                         |       | 14.4                                        |       | 16.1 |   |
| Total fixed  charges deducted from earnings                                                                                                 |       | $                                           | 440.6      |   | $ | 384.9 |   |
|                                                                                                                                        |       |                                        |       |   |   |
| Ratio of earnings to fixed charges                                                                                                          |       | 1.0                                         |       | 2.1 |   |

 

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