CPAC, Inc. Breaks Ground On New Chemical Plant in Thailand
CPAC Asia, Ltd. to Become Company’s
Sixth Global Chemical Manufacturing Facility

LEICESTER, New York, September 29, 1998 - CPAC, Inc. (NASDAQ: CPAK) announces that construction has commenced on its photographic chemical manufacturing plant in the Wellgrow Industrial Park in Bangkok, Thailand. CPAC Asia, Ltd. is being built in response to the growing market share of CPAC’s Trebla brand photographic chemistry in the Pacific Rim. It is expected that the plant, a 33,000 square foot facility, will be completed by March, 1999 with manufacturing anticipated to begin in the first quarter of FY 2000.

"As part of our strategic plan for our color imaging business, we had been looking to make an acquisition in Asia, but pricing and currency situations had not been conducive to such a move," said Thomas J. Weldgen, Vice President, Finance and Chief Financial Officer of CPAC, Inc. "The weakened Asian economy presents an outstanding opportunity for new foreign investment. In our final analysis, we determined that building our own plant would be more cost efficient than making an acquisition."

Stanley H. Gulbin, Vice President, International Markets for CPAC Imaging Group, added, "It is far more efficient to supply our existing Asian accounts from a regional plant. Various markets will have different requirements for product type and packaging. The generous incentives extended to CPAC by the Thai government’s Board of Investment, combined with our proximity to Asian customers, will give us a significant advantage in the marketplace – one that translates into increased sales volume, profits, and growth in the Asian market."

CPAC, Inc. owns an 80% interest in CPAC Asia Ltd., with the remaining 20% being held by AMCM. AMCM has over twenty years experience in the Asian photographic industry market and will manage the day-to-day operations at the Thai facility.

Weldgen continued, "Like CPAC’s photographic chemical manufacturing facility in Belgium, which recently completed a 30,000 square-foot expansion, CPAC Asia, Ltd. can be expanded to accommodate future growth. The property we purchased will allow us to more than double the initial size of the plant."

Gulbin adds, "CPAC Imaging Group’s competitive advantages in the fast-growing international imaging market are its ability to provide value-adds, such as its unique TriPhase™ (one-part) chemistry; innovative packaging; odorless processing solutions; environmental compliance equipment; and quality control programs."

CPAC Imaging Group currently operates imaging chemical manufacturing facilities in the United States, Belgium, Italy, and South Africa. The Imaging Group comprises Trebla Chemical Company, St. Louis, MO; CPAC Equipment Division, Leicester, NY; PRS, Inc., St. Louis, MO; Allied Diagnostic Imaging Resources, Inc., Norcross, GA; CPAC Europe, Herentals, Belgium; CPAC Africa, Pretoria, South Africa; and CPAC Italia, Milan, Italy.

CPAC, Inc. is an acquirer, developer and licensee of brand names, and produces and markets specialty chemicals and environmental compliance equipment for the worldwide imaging industry. The Company manufactures chemicals and hard goods for the cleaning and personal care market through its Fuller Brush subsidiary. More information is available on the Company’s Website: www.cpac-fuller.com.

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