**Exhibit 12**

 

OWENS-ILLINOIS GROUP, INC.COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(Millions of dollars, except ratios)

 
| ** **                                                                                         | ** **                                                          | **Years ended December 31,** | ** ** |
|----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------|------------|
|                                                                                               |                                                                | **2005**                          | ** ** | **2004** | ** ** | **2003** | ** ** |
| Earnings from continuing operations before income  taxes and minority share owners’ interests |                                                                | $                                 | (83.6      | ) | $ | 362.9 |   | $ | 12.0 |   |
| Less:                                                                                              | Equity earnings                                                     |                              | (22.6      | ) | (27.8 | ) | (27.1 | ) |
| Add:                                                                                               | Total fixed charges deducted from earnings                          |                              | 479.7      |   | 489.1 |   | 440.6 |   |
|                                                                                               | Proportional share of pre-tax earnings of 50% owned  associates     |                              | 8.9        |   | 11.0 |   | 8.1 |   |
|                                                                                               | Dividends received from equity investees                            |                              | 11.0       |   | 12.8 |   | 31.1 |   |
| Earnings available for payment of fixed charges                                                    |                                                                | $                                 | 393.4      |   | $ | 848.0 |   | $ | 464.7 |   |
| Fixed charges (including the Company’s proportional  share of 50% owned associates):          |                                                                |                              |       |   |   |   |   |
|                                                                                               | Interest expense                                                    |                              | $          | 450.7 |   | $ | 460.0 |   | $ | 415.4 |   |
|                                                                                               | Portion of operating lease rental deemed to be  interest            |                              | 13.0       |   | 14.2 |   | 10.8 |   |
|                                                                                               | Amortization of deferred financing costs and debt  discount expense |                              | 16.0       |   | 14.9 |   | 14.4 |   |
| Total fixed charges deducted from earnings                                                         |                                                                | $                                 | 479.7      |   | $ | 489.1 |   | $ | 440.6 |   |
|                                                                                               |                                                                |                              |       |   |   |   |   |
| Deficiency of earnings available to cover fixed  charges                                           |                                                                | 86.3                              |       |   |   |   |   |
| Ratio of earnings to fixed charges                                                                 |                                                                |                              |       | 1.7 |   | 1.0 |   |

 

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| ** **                                                                                                                                  | ** **                                                          | **Years ended December 31,** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------|------------|
|                                                                                                                                        |                                                                | **2002**                          | ** ** | **2001** |   |
| Earnings from continuing operations before income  taxes, minority share owners’ interests and cumulative effect of accounting  change |                                                                | $                                 | 412.5      |   | $ | 650.9 |   |
| Less:                                                                                                                                       | Equity earnings                                                     |                              | (27.0      | ) | (18.8 | ) |
| Add:                                                                                                                                        | Total fixed charges deducted from earnings                          |                              | 384.9      |   | 374.6 |   |
|                                                                                                                                        | Proportional share of pre-tax earnings of 50% owned  associates     |                              | 13.3       |   | 10.4 |   |
|                                                                                                                                        | Dividends received from equity investees                            |                              | 29.2       |   | 18.2 |   |
| Earnings available for payment of fixed charges                                                                                             |                                                                | $                                 | 812.9      |   | $ | 1,035.3 |   |
| Fixed charges (including the Company’s proportional  share of 50% owned associates):                                                   |                                                                |                              |       |   |   |
|                                                                                                                                        | Interest expense                                                    |                              | $          | 356.1 |   | $ | 345.3 |   |
|                                                                                                                                        | Portion of operating lease rental deemed to be  interest            |                              | 12.7       |   | 14.3 |   |
|                                                                                                                                        | Amortization of deferred financing costs and debt  discount expense |                              | 16.1       |   | 15.0 |   |
| Total fixed charges deducted from earnings                                                                                                  |                                                                | $                                 | 384.9      |   | $ | 374.6 |   |
|                                                                                                                                        |                                                                |                              |       |   |   |
| Ratio of earnings to fixed charges                                                                                                          |                                                                | 2.1                               |       | 2.8 |   |

 

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