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LEICESTER, New York, April 7, 1999 -- CPAC, Inc.
(Nasdaq NNM: CPAK) today announced that it has established a strategic alliance with
Management Cleaning Controls, LLC (MCC), a national cleaning service company. As part of
this agreement, CPAC’s Cleaning Technologies Group (CTG) will supply cleaning and
floor care products, co-develop new floor care finishes, and co-market product/service
solutions to its customers. The new relationship is expected to result in over $500,000 in
incremental business to CTG in the first year.
According to Thomas N. Hendrickson, CPAC, Inc. Chief
Executive Officer, the alliance with MCC dovetails with CPAC’s growth strategy for
the CTG business. "When we completed the IVAX acquisition in 1997 to form CTG, we
targeted the commercial/janitorial cleaning market for growth. External growth will
continue by complementary acquisitions. Organic growth will be driven by a three-prong
strategy that will 1) enhance our distribution network, 2) deliver an electronic commerce
alternative, and 3) use strategic alliances to partner with the end-users of our products
(i.e. MCC), to provide total cleaning and labor-saving solutions to their customers."
"Emerging trends in the commercial/janitorial
cleaning industry include consolidation of both facilities management and contract
cleaning businesses -- the users of our products," continued Mr. Hendrickson.
"Many facilities managers are faced with decisions concerning outsourcing the
cleaning function. The arrangement with MCC serves several purposes: it gets CTG closer to
end-users, providing vital feedback on market needs; it allows CTG to offer full-service
solutions; and it adds significant incremental manufacturing volume to our Fuller Brush
plant in Great Bend, Kansas."
According to Dr. Gerald Saluti, Chief Executive Officer of
MCC, "High-quality floor care products are a key part of the value that MCC offers.
Having CPAC as a partner and supplier of cleaning and floor care products will help MCC
secure new business with targeted national and regional customers."
Headquartered in Louisville, KY, Management Cleaning
Controls, LLC is a newly formed company providing janitorial maintenance services,
including floor care cleaning, daily maintenance, and floor polishing to regional and
national retail chains, malls, and supermarkets. The company is the result of the
reorganization of Management Cleaning Controls, Inc., Texas MCC, Inc., and Kentucky
Cleaning Management, Inc., and will serve as the platform for building a national cleaning
service company.
Celebrating its thirtieth year in business, CPAC, Inc.
owns The Fuller Brush Company in Great Bend, Kansas, as well as imaging chemical
facilities in the U.S., Europe, Africa and Asia. Cleaning Technologies Group, a
combination of Fuller Brush’s commercial cleaning division and the former IVAX
Industries janitorial chemicals business, was formed in 1997 after CPAC, Inc. acquired
certain assets of IVAX Industries. Shares are traded over the Nasdaq National Market
System under the ticker symbol "CPAK." Additional information is available on
the Company's website (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.
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