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LEICESTER, NY, August 9, 2001 – CPAC,
Inc., (Nasdaq: CPAK) detailed its cost containment and top-line growth
initiatives at its 31st annual shareholders' meeting (its twentieth since going
public in 1981) on August 9th
in Mt. Morris, NY. Edited transcripts of the comments made by each presenter,
along with an edited transcript of questions and answers, have been posted to
CPAC's web site at www.cpac.com. The Company also announced that all management
proposals were passed by shareholders.
President and Chief Executive Officer, Thomas N.
Hendrickson, told those in attendance, "Although global economic conditions
have made it difficult for CPAC to meet its sales and profit targets, we are
financially stable and well-positioned to take advantage of opportunities for
top-line growth that are present in the market today."
Mr. Hendrickson commented that there is cause
for optimism in both Imaging and Fuller Brands, the two industry segments in
which CPAC operates. "Our 1994 'Vision 2000' plan to prepare this company
for the impact of digital imaging by diversifying the business by the year 2000
was well conceived. An acquisition strategy was successfully executed to create
what now is Fuller Brands. Our pessimism about conventional photography,
however, has been overstated. Yes, digital photography is growing and will
continue to grow. However, there is still much money to be made in the
traditional silver halide arena, both domestically and internationally, and we
aim to get a larger share. "
Read D. McNamara, new President of Fuller
Brands, described his optimism for the segment, stating, "While we are
definitely not out of the woods, the month of July featured all three of our
Fuller Brands' companies recording sales above the prior year. It has been quite
some time since that has happened. Amidst the negative signs in a difficult
economic environment, we are beginning to see some slight improvement in our
results. Initiatives that were implemented late last year are beginning to take
hold, even in a tough operating environment."
Mr. McNamara continued, "But we can't wait
for the economy to improve -- we have to seize the opportunity ourselves and
move ahead aggressively to promote growth. My top priority is to stabilize the
downward trend in sales this year, and position the segment for real growth next
year. Strategies will include a blend of organic growth through new marketing
initiatives, and a focused approach on tactical acquisitions."
Thomas J. Weldgen, CPAC's Chief Financial
Officer, discussed financial results for the quarter ended June 30, 2001, and
highlighted some additional information about the current conditions and outlook
for the company. He stated, "Our strong balance sheet will allow us to work
our way out of the current economic downturn and still leave our Company with
continued substantial opportunities for expansion and leverage."
CPAC, Inc. is an international manufacturer and
marketer of industrial and household cleaning products and related accessories,
and personal care products for the cleaning and personal care industry, as well
as prepackaged chemical formulations, supplies, and equipment systems for 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, 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''. For more information, or to order Fuller Brush or Stanley Home
Products, visit www.cpac.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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