CPAC, Inc. Announces Earnings of $.21 per share;
Declares Quarterly Cash Dividend of $.07

LEICESTER, NY, November 7, 2001 – CPAC, Inc., (Nasdaq: CPAK) a global manufacturer and marketer of specialty chemicals for the cleaning, personal care, and imaging industries, today reported second quarter and six month results for the period ended September 30, 2001. Second quarter results were in line with guidance provided on August 8, 2001.

CPAC’s Board of Directors today declared a quarterly cash dividend in the amount of $0.07 per share, payable on December 14, 2001 to shareholders of record at the close of business on November 23, 2001.

Consolidate-d net sales in the second quarter were down 2.9 percent to $26.3 million compared to $27.0 million last year. Consolidated net income for the quarter was $1.1 million versus $1.5 million for the same period last year. Second quarter earnings per diluted share were $0.21 as against $0.26 per diluted share in the prior year.

Consolidated net sales for the first half of fiscal 2002 were down 7.5 percent to $50.5 million versus $54.6 million for the same six-month period last year. Consolidated net income was $1.8 million as against $2.8 million for the first six months last year. Six-month earnings per diluted share were $0.34 compared to $0.50 per diluted share for the same period last year.

Thomas N. Hendrickson, CPAC President and Chief Executive Officer, commented, "In early August we predicted a slight weakness in sales for this quarter due to global economic conditions. This was prior to the events of September 11, the cumulative ongoing effects of which are still unknown."

Net sales for the Fuller Brands segment were $15.4 million for the second quarter versus $15.8 million last year. Second quarter operating profit was $909 thousand compared with $1.3 million for the second quarter of fiscal 2001.

Fuller Brands segment net sales were $30.2 million for the first six months of fiscal 2002 as against $31.9 million for the prior year. Operating profit for the six-month period was $1.9 million compared with $2.8 million last year.

Read D. McNamara, President of Fuller Brands, remarked, "Prior to September 11, meaningful progress was being made on initiatives outlined at the annual meeting, and sales and profit results through September 10 reflected that progress. The aftermath of the September attacks, however, dramatically and adversely affected what would have been a stronger quarter. Both Stanley Home Products and CTG suffered a sharp sales contraction in the final three weeks of the quarter. While these external events combined with the slowing economy make us guarded in our projections for the second half of the fiscal year, we are continuing to pursue key marketing initiatives that will provide future growth opportunities for the segment."

Imaging segment sales for the second quarter were $10.8 million versus $11.2 million last year. Imaging segment operating profit was $908 thousand compared with $1.2 million in last year's second quarter.

Six-month Imaging segment sales were $20.3 million as against $22.7 million for the same period last year. Segment operating profit was $1.2 million, down from $2.1 million for the first six months of fiscal 2001.

Mr. Hendrickson commented, "The greatest shortfall was realized in our domestic Imaging companies. Internationally, our CPAC Asia division had a very strong quarter, and other foreign Imaging locations all showed positive performance in their respective local currencies."

The statement of cash flows remained strong for the six-month period. CPAC started with a cash balance of $8.9 million at March 31, expended $1.6 million to repurchase CPAC stock in the marketplace, distributed shareholder dividends of $736,000, and paid $534,000 of debt. Depreciation and amortization for the first six months was $1,871,335 with total capital additions of $589,488. At September 30, $8 million in cash remains on the balance sheet.

EBITDA (earnings before interest, taxes, depreciation, and amortization) was $2.7 million for the quarter, or $0.52 per share.

To provide guidance, Mr. Hendrickson stated, "We have been careful in our evaluations of capital assets in light of economic conditions. We have also frozen employment levels at all divisions. We are monitoring cash usage and have delayed certain capital projects temporarily. CPAC companies are not immune from the precipitous slowdown evident in the retail, travel, entertainment, and hospitality industries. We therefore expect further contraction in sales in the third quarter and beyond. We will remain cautious and diligent as we continue efforts at cost containment and margin improvements, and reiterate our expectation that CPAC will remain profitable throughout the fiscal year, although results will likely be below last year's third and fourth quarters."

CPAC, Inc. (Nasdaq NMM: CPAK) 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 for the Imaging industry. 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. More information is available at www.cpac.com.