CPAC, Inc. Acquires Commercial Cleaning Chemicals Business and
Announces First Quarter Results

LEICESTER, N.Y., July 23, 1997 -- CPAC, Inc. (Nasdaq-NNM: CPAK) today announced it has acquired certain assets of the commercial cleaning chemicals business of IVAX Industries and reported operating results for its first quarter ended June 30, 1997.

Under the terms of the agreement CPAC, Inc. will purchase certain assets of IVAX Industries, Inc., a subsidiary of IVAX Corporation (AMEX: IVX), for $17 million in cash plus the assumption of certain liabilities. The purchase price is subject to audited financial statements. The acquired business had 1996 sales of approximately $25 million, and manufactures and distributes 177 chemical products for commercial and janitorial cleaning, including floor and carpet care, germicidal cleaners, air deodorizers, industrial degreasers, and hand soaps. The business has more than fifty trademarks, and markets its products under the national brand names Franklin? and Masury Columbia and through private-label accounts.

CPAC, Inc., a specialty chemical manufacturer operating in two business segments, cleaning and personal care, and imaging, intends to incorporate this acquisition into its newly formed Cleaning Technologies Group and operate it as a division of its Fuller Brush subsidiary in Great Bend, Kansas. In fiscal year ended March 31, 1997, CPAC, Inc. reported sales of $92.9 million and net profit of $7.5 million or $1.02 per share.

Commenting on the acquisition, Thomas N. Hendrickson, CPAC, Inc. Chief Executive Officer, said, "One of our key objectives is to develop Fuller Brush's brand identity in the commercial cleaning industry through selective and strategic acquisitions of recognized names. During the past twelve months, we evaluated many potential candidates, but believe we have found the right strategic fit. As a division of Fuller Brush, the Cleaning Technologies Group will have the opportunity to expand its product line to include aerosols, brushes, and mops and brooms. Fuller will be capable of leveraging the highly recognized Franklin and Masury-Columbia brands to increase its market share in this expanding sector. Combined, the companies have a nationwide network of 600 distributors. The Franklin name has been established for sixty years and is one of the commercial cleaning market's strongest brands, especially in floor care."

Mr. Hendrickson continued, "According to industry research, the market for commercial cleaning chemicals is anticipated to reach $7 billion by the year 2000. Merging the two companies will establish CPAC as a significant player in this fastest growing segment of the cleaning industry."

CPAC, Inc. also announced operating results for its first quarter ended June 30, 1997. Sales declined 2.2% to $22.0 million in the first quarter, compared to $22.5 million for the same period last year. Net income for the first quarter was $1.68 million or $0.23 per share, versus $1.82 million or $0.24 per share, in the comparable quarter last year.

Sales in the Cleaning and Personal Care segment in the first quarter were $11.3 million versus $11.9 million one year ago. Sales in the direct selling portion of the Cleaning and Personal Care segment were down in the first quarter, compared to last year, due to the reduction in the number of direct selling representatives.

Sales in the Imaging segment in the first quarter increased to $10.73 million compared to $10.59 million in the corresponding period last year. Continued strong foreign operations, particularly CPAC's European imaging chemical subsidiary in Belgium, accounted for the sales increase.

Founded in 1969, CPAC, Inc. owns The Fuller Brush Company in Great Bend, Kansas, as well as five imaging chemical facilities in the U.S. and Europe. CPAC has over 250 registered trademarks for chemical and non-chemical products in the cleaning and personal care industry, and imaging market. Shares are traded over the Nasdaq National Market System under the ticker symbol "CPAK". Additional information is available on the Company's website (http://www.cpac-fuller.com).

Except for the historical matters contained herein, statements in this press release are forward looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risks and uncertainties which may affect CPAC's business and prospects, including economic, competitive, governmental, technological and other factors discussed in CPAC's filings with the Securities and Exchange Commission.

CPAC, Inc. Results of Operations
($ millions)
First Quarter Ended June 30