CPAC First Quarter Net Income Improves By 17 Percent
Earnings Per Share Increase by 33 Percent

LEICESTER, NY – August 8, 2000 – CPAC, Inc. (Nasdaq: CPAK), an international manufacturer and marketer of cleaning chemicals and related accessories, personal care products, and prepackaged imaging chemical formulations, today announced improved results for the first quarter of fiscal year 2001, ended June 30, 2000.

Consolidated net sales for the first quarter were $26.9 million, compared to $26.5 million for the same period last year. Pre-tax income for the quarter was $2.1 million, an increase of 11.3 percent over first quarter 2000 pre-tax income of $1.9 million. First quarter net income increased by 16.9 percent to $1.3 million, compared with $1.1 million for the first quarter of last year. Earnings per share for the quarter increased 33.3 percent to $0.24, from $0.18 per diluted share in the prior year. Diluted shares outstanding for the first quarter of 2001 were 5.6 million, or 10 percent less shares than the prior year’s first quarter.

"As we announced at last year’s annual meeting, we have been focused on positioning both of our business segments to be more competitive going forward, and we believe our first quarter results continue to demonstrate significant progress," said Thomas N. Hendrickson, CPAC President and Chief Executive Officer. "We took major steps to reduce overhead in the Fuller Brands business, and added strong leadership at the operations level. Our ongoing mandate is to grow sales to complement the progress we’ve made on the operational side."

"We have also invested in our growing Pacific Rim imaging business, to ensure that we remain strong and competitive in the Imaging segment. Our solid revenue growth that occurred during the first quarter supports the wisdom of this decision," Mr. Hendrickson said.

Fuller Brands

Fuller Brands segment sales were $15.6 million for the first quarter of fiscal 2001, compared to $16.2 million in the same quarter last year. Sales were down 3.2% due to continued erosion of Fuller’s business with a major sweepstakes customer. Sales would have been flat, excluding this impact. Operating income for the Fuller Brands segment was $1.51 million in the first quarter, up 14.5 percent, in comparison to operating income of $1.32 million for the first quarter of fiscal 2000.

"The strong 14.5 percent improvement to Fuller Brands’ operating income during the quarter indicates that the restructuring steps taken during the last twelve months have begun to produce the desired effect," Mr. Hendrickson said. "In addition, we are encouraged by the revenue and profit improvement at Cleaning Technologies Group, a business that we expect to see growth from going forward."

First quarter Imaging segment sales increased 8.9 percent to $11.2 million, compared to $10.3 million for the comparable quarter. Imaging segment operating profit for the first quarter increased by 2.3 percent to $880,000, compared with $860,000 for last year.

"Our increased Imaging segment sales for the quarter reflect the strength of our international color imaging business, as well as increased equipment volume," Mr. Hendrickson said.

CPAC, Inc. is an international manufacturer and marketer of industrial and household cleaning products and related accessories, personal care products, and prepackaged chemical formulations, supplies, and equipment systems to the imaging industry. The company operates in two business segments: Cleaning and Personal Care (Fuller Brands) and Imaging. The Fuller Brands segment includes The Fuller Brush Company (commercial and consumer), Stanley Home Products, and Cleaning Technologies Group. CPAC's Imaging segment serves the global Imaging market and includes three domestic and four international chemical manufacturing operations. CPAC, Inc. shares trade on the Nasdaq National Market System under the ticker symbol "CPAK''. More information is at the Company's web site (www.cpac-fuller.com).