CPAC Reports EPS Up 23.8% for Quarter and 28.2% for Six Months
14.6% Gain in Second Quarter Net Income

LEICESTER, N.Y. – November 1, 2000 – CPAC, Inc. (Nasdaq/NNM: CPAK), an international manufacturer and marketer of cleaning chemicals and related accessories, personal care products, and prepackaged imaging chemical formulations, today announced improved earnings per share and net income for the second quarter of fiscal year 2001, ended September 30, 2000.

The Company also announced that its Board of Directors had declared a quarterly cash dividend in the amount of $0.07 per share, payable on December 15, 2000, to shareholders of record at the close of business on November 17, 2000.

Consolidated Results

Consolidated net income for the quarter increased 14.6 percent to $1.48 million, from $1.29 million last year. The increase is a result of improved operating efficiencies and higher margins.

Second quarter earnings per diluted share increased by 23.8 percent, to $0.26, compared with $0.21 per diluted share in the prior year. Weighted average common shares outstanding were 10.1 percent lower at 5,601,525 for the second quarter, compared with 6,229,944 shares outstanding last year, as a result of the company’s ongoing stock repurchase plan.

Consolidated net sales in the second quarter were $26.4 million compared to $28.0 million for the same period last year.

The gross margin percentage for the quarter increased to 45.2 percent, from 42.5 percent for the second quarter of fiscal 2000. Operating cash flow increased by 10 percent for the quarter to $3.58 million.

Six-month consolidated net income increased 15.6 percent to $2.80 million, from $2.42 million for the first six months of last year. Six-month earnings per share increased by 28.2 percent to $0.50, from prior year diluted six-month earnings per share of $0.39. Six-month weighted average common shares outstanding were 5,622,521 for the current fiscal year and 6,257,382 for the prior year period.

Consolidated net sales for the first six months of fiscal 2001 were $53.2 million compared to $54.5 million for the comparable period last year.

"We are pleased with the significant improvement in profitability, which is a result of major cost containment initiatives implemented late last year," said Thomas N. Hendrickson, CPAC President and Chief Executive Officer.

Fuller Brands

Net sales for the Fuller Brands segment were $15.3 million for the second quarter versus $16.5 million last year. Second quarter operating profit was $1.28 million compared with $1.45 million last year.

Fuller Brands segment net sales were $31.0 million for the first six months of fiscal 2001 versus $32.6 million for the prior year. Operating profit increased slightly to $2.79 million compared with $2.77 million last year.

"Segment sales are down primarily as a result of a decline with a major sweepstakes customer and a reduction in the number of direct selling representatives. This will be offset by recently announced top-line initiatives including e-commerce, marketing alliances, and new personal care products," said Mr. Hendrickson.

Imaging

Imaging segment sales for the second quarter were $11.0 million, versus $11.5 million last year as a result of currency exchanges related to the strong U.S. dollar. Imaging segment operating profit increased 9.5 percent to $1.21 million, compared with $1.1 million in last year's second quarter.

Six-month Imaging segment sales increased 2 percent to $22.3 million, versus $21.8 million for the same period last year. Segment operating profit increased 6.3 percent to $2.09 million, from $1.96 million for the first six months of fiscal 2000.

Mr. Hendrickson commented, "We are pleased with the performance at our Asian facility, which reported continued increases in shipments to new Pacific Rim customers in the second quarter. A new initiative in South America is also expected to enhance our international growth strategy."

A conference call discussing these results will take place today, November 1, 2000, at 11:00 ET. To listen, log onto www.vcall.com/NASApp/Vcall/EventPage?ID=46581 for a simultaneous broadcast, or within 90 days to access an archived version. The recorded call can be accessed by dialing 1-800-625-5288 and entering the passcode 836237.

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 (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.

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