THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Avery Dennison Corporation (AVY)

3/20/2006 Proxy Information

Peter W. Mullin is the chairman, chief executive officer and a director of MC Insurance Services, Inc. (“MC”), Mullin Insurance Services, Inc. (“MINC”) and PWM Insurance Services, Inc. (“PWM”), executive compensation and benefit consultants and insurance agents. Mr. Mullin is also the majority stockholder of MC, MINC and PWM (collectively referred to as the “Mullin Companies”). During 2005, the Company paid premiums to insurance carriers for life insurance placed by MC, MINC and PWM in 2005 and prior years in connection with various Company employee benefit plans. The Mullin Companies have advised that in 2005, MC, MINC and PWM earned commissions from such insurance carriers in an aggregate amount of approximately $850,500 for the placement and renewal of this insurance, in which Mr. Mullin had direct and indirect interests of approximately $659,900, the majority of which was allocated to and used by MC Insurance Agency Services, LLC (an affiliate of MC) to administer benefit plans and provide benefit statements to participants under various Company employee benefit plans. The Mullin Companies own a minority interest in M Financial Holdings, Inc. (“MFH”). Substantially all of the life insurance policies, which the Company has placed through the Mullin Companies in 2005 and prior years, are issued by insurance carriers that participate in reinsurance agreements entered into between these insurance carriers and M Life Insurance Company (“M Life”), a wholly owned subsidiary of MFH. Reinsurance returns earned by M Life are determined annually by the insurance carriers and can be negative or positive, depending upon the results of M Life’s aggregate reinsurance pool, which consists of the insured lives reinsured by M Life. The Mullin Companies have advised that in 2005, they participated in net reinsurance gains (without risk of forfeiture) of M Life, of which approximately $191,800 of such gains were ascribed by M Life to the Company’s life insurance policies referred to above, and in which gains, Mr. Mullin had direct and indirect interests of approximately $120,000. In addition, the Mullin Companies have advised that in 2005, they also participated in net reinsurance gains of M Life that are subject to risk of forfeiture, of which approximately $1,469,800 of such gains were ascribed by M Life to the Company’s life insurance policies, and in which gains, Mr. Mullin had direct and indirect interests of approximately $1,061,700.

3/10/2005 Proxy Information

Peter W. Mullin is the chairman, chief executive officer and a director of MC Insurance Services, Inc. (“MC”), Mullin Insurance Services, Inc. (“MINC”) and PWM Insurance Services, Inc. (“PWM”), executive compensation and benefit consultants and insurance agents. Mr. Mullin is also the majority stockholder of MC, MINC and PWM (collectively referred to as the “Mullin Companies”). During 2004, the Company paid premiums to insurance companies for life insurance placed by MC, MINC and PWM in 2004 and prior years in connection with various Company employee benefit plans. The Mullin Companies have advised that in 2004, MC, MINC and PWM earned commissions from such insurance companies in an aggregate amount of approximately $1,143,900 for the placement and renewal of this insurance, in which Mr. Mullin had direct and indirect interests of approximately $804,000, the majority of which was allocated to and used by MCP Insurance Services, LLC (an affiliate of MC) to administer benefit plans and provide benefit statements to participants under various Company employee benefit plans. The Mullin Companies own a minority interest in M Financial Holdings, Inc. (“MFH”). Substantially all of the life insurance policies, which the Company has placed through the Mullin Companies in 2004 and prior years, are issued by insurance companies that participate in reinsurance agreements entered into between these insurance companies and a wholly owned subsidiary of MFH. Reinsurance returns earned by MFH can be negative or positive, depending upon the results of MFH’s aggregate reinsurance pool, which is determined annually by MFH. The Mullin Companies have advised that in 2004, they participated in reinsurance gains of MFH, of which approximately $197,000 of net gains were ascribed by MFH to the Company’s life insurance policies referred to above, and in which gains, Mr. Mullin had direct and indirect interests of approximately $151,000.

In May 2000, Mr. Charles D. Miller retired as Chairman of Avery Dennison Corporation, a position he had held since May 1998. From November 1983 through April 1998, Mr. Miller was Chairman and Chief Executive Officer of Avery Dennison Corporation.

3/10/2004 Proxy Information

Peter W. Mullin is the chairman, chief executive officer and a director of MC Insurance Services, Inc. (“MC”), Mullin Insurance Services, Inc. (“MINC”) and PWM Insurance Services, Inc. (“PWM”), executive compensation and benefit consultants and insurance agents. Mr. Mullin is also the majority stockholder of MC, MINC and PWM. During 2003, the Company paid insurance companies premiums for life insurance placed by MC, MINC and PWM in 2003 and prior years in connection with various Company employee benefit plans. In 2003, MC, MINC and PWM earned commissions from such insurance companies in an aggregate amount of approximately $1,071,300 for the placement and renewal of this insurance, in which Mr. Mullin had direct and indirect interests of approximately $744,600, the majority of which was allocated to and used by MCP Insurance Services, LLC (an affiliate of MC) to administer benefit plans and provide benefit statements to participants under various Company employee benefit plans.

Charles D. Miller served Avery Dennison Corporation as Chairman from May 1998 to April 2000, Chairman and Chief Executive Officer from November 1983 through April 1998 and as President and Chief Executive Officer prior to 1983.