Karen McCulley
Mgr., Corp Comm
Wendy F. Clay
VP Admin
585-382-3223

CPAC, Inc. Announces Earnings of $.14 per share;
Declares Quarterly Cash Dividend of $.07

LEICESTER, NY, February 13, 2002 – CPAC, Inc., (Nasdaq: CPAK) a global manufacturer and marketer of specialty chemicals for the cleaning, personal care, and imaging industries, today reported third quarter and nine month results for the period ended December 31, 2002.

Thomas N. Hendrickson, CPAC's President and Chief Executive Officer, commented, "CPAC has met the expectations set forth in guidance provided on November 7, 2001. In light of the challenging environment for U.S. manufacturers in the quarter, we increased international imaging sales and continued to generate a profit for our shareholders. These results demonstrate that our initiatives are sound, and that we are executing them well."

CPAC’s Board of Directors today declared a quarterly cash dividend in the amount of $0.07 per share, payable on March 22, 2002 to shareholders of record at the close of business on February 22, 2002.

Consolidated Results

Third quarter consolidated net sales were $23.1 million compared to $24.7 million last year. Net income for the quarter was $726 thousand versus $1.1 million for the same period last year. Earnings per diluted share were $0.14 as against $0.19 in the same quarter last year.

For the nine-month period, CPAC Inc. net sales were $73.7 million versus $79.3 million for the same period last year. Net income for the period was $2.5 million as against $3.9 million. Nine-month earnings per diluted share were $0.48 compared to $0.69 per diluted share for the same period last year.

Thomas N. Hendrickson, CPAC President and Chief Executive Officer, commented, "In early November we projected a probable sales contraction for the third quarter and at least through this fiscal year, due primarily to the anticipated continuation of unfavorable domestic economic conditions, including post-September slowdowns in the retail and travel industries."

Fuller Brands Segment

For the third quarter, Fuller Brands' net sales were $13.0 million versus $14.1 million last year. Operating profit for the period was $752 thousand compared with $1.3 million for the third quarter of fiscal 2001.

In the nine-month period, segment net sales were $43.1 million as against $46.0 million for the same period last year. Operating profit for the nine-month period was $2.7 million compared with $4.1 million last year.

Read D. McNamara, President of Fuller Brands, remarked, "Our Cleaning Technologies Group commercial cleaning business has been impacted by slowdowns in the travel, entertainment, hospitality and retail industries. A suspension of orders from a major customer created further disruption for CTG. This customer subsequently filed for Chapter 11 bankruptcy, however our exposure to receivables loss is minimal. We continue to work with this customer, but expect that calendar year 2002 sales will be somewhat lower than last year.

"Despite these pressures, CTG should derive benefit from having recently been named a preferred supplier by a major U.S. distributor to the retail food market. This relationship strengthens CTG’s ability to penetrate a target market through this nationally recognized, full-service distributor.

"Other segment marketing initiatives are beginning to show promise, with both Fuller Brush and Stanley Home Products sales results ending Q3 above prior year. Fuller's nine-month sales are also up as against prior year."

Imaging Segment

Third quarter Imaging segment sales were $10.2 million versus $10.6 million last year. Operating profit was $533 thousand compared with $838 thousand in last year's third quarter.

Nine-month sales were $30.5 million as against $33.3 million for the same period last year, with operating profit at $1.8 million, down from $2.9 million for the first nine months of fiscal 2001.

Mr. Hendrickson commented, "Results for our domestic imaging entities reflect continued competitive challenges along with the U.S. recession and increasing growth of digital imaging technologies.

"Yet International imaging sales increased by 8% over last years' third quarter, the third such consecutive increase. Of particular note is CPAC Asia, where sales have increased year-over-year for five consecutive quarters. . . and further growth is highly likely for the next fiscal year.

Hendrickson continued, "CPAC Inc. recently expanded its partnership with TURA AG, a well-respected global supplier of photographic film, paper, chemistry, and wide-format inkjet printing consumables that enjoys strong brand recognition in Europe and beyond, especially in underdeveloped countries. This move further strengthens our position internationally by opening TURA's established markets to complementary CPAC products, and vice versa. Domestically, Trebla Chemical Company is working closely with TURA's U.S. division to achieve these same objectives. With this combination of products, we can now compete head-to-head with the industry's leading manufacturers.

"We believe that the greatest top line opportunities for TURA and CPAC reside in the global niche markets we serve from our manufacturing facilities on the European, African, and Asian continents. International sales now comprise approximately 30% of total Imaging segment sales, and we expect this figure will steadily climb as we continue our strategy of growing our share in international markets. To that end, we will aggressively exploit the 'full spectrum' product offering made possible through our relationship with TURA."

Other Financial Information

The statement of cash flows remained strong for the nine-month period. CPAC started with a cash balance of $8.9 million at March 31, expended $1.8 million to repurchase CPAC stock in the marketplace, distributed shareholder dividends of $1.1 million, and paid $0.5 million of debt. Depreciation and amortization for the first nine months was $2.1 million with total capital additions of $0.9 million. At December 31, $10.0 million in cash remained on the balance sheet.

The Company's December 31, 2001 balance sheet lists $10.5 million of goodwill related to its fiscal 1998 acquisition of Cleaning Technologies Group. In light of current economic conditions, the Company is continuing to evaluate whether any impairment has occurred. Whether temporary or permanent, economic conditions will determine whether any adjustment to CPAC's financial statements would be required when it adopts Statement of Financial Accounting Standards No. 142 (Accounting for Goodwill and Other Intangible Assets) in its 2003 fiscal first quarter.

To provide guidance, Mr. Hendrickson stated, "Recent news indicates economic recovery may be near, but we are not yet convinced about the prospect of a short-term turnaround. Thus, CPAC will continue its conservative approach to cash usage to provide an added level of protection against longer-term difficult market conditions while still allowing for strategic growth investments, such as our $1.9 million investment in TURA. We will continue to exercise cautious diligence on behalf of our shareholders as we strive to improve margins and reign in costs, and we expect to remain profitable throughout the fourth quarter and coming fiscal year."

CPAC, Inc. (Nasdaq NMM: CPAK) is an international manufacturer and marketer of prepackaged photographic chemical formulations, supplies, and equipment systems for the Imaging industry, as well as industrial, commercial, and household cleaning solutions, related accessories, and personal care products. CPAC's Imaging segment includes three domestic and four international chemical manufacturing operations. The Fuller Brands segment includes The Fuller Brush Company, Stanley Home Products, and Cleaning Technologies Group. More information is available at 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.

Nine months ended

2001

2000

% change

2001

2000

% change

Net sales:

Fuller Brands (a)

$ 12,951,874

$ 14,104,826

( 8.2)

$ 43,146,430

$ 46,037,906

( 6.3)

Imaging (a)

10,192,261

10,574,989

( 3.6)

30,533,772

33,288,668

( 8.3)

Total sales (a):

$ 23,144,135

$ 24,679,815

( 6.2)

$ 73,680,202

$ 79,326,574

( 7.1)

Net income

$ 725,609

$ 1,056,036

(31.3)

$ 2,510,749

$ 3,860,450

(35.0)

Income per common
share (diluted):

0.14

0.19

(26.3)

0.48

0.69

(30.4)

EBITDA (b)

1,982,951

2,782,481

(28.7)

6,941,336

9,613,199

(27.8)

5,152,800

5,530,351

(6.8)

5,238,901

5,591,798

(6.3)

(a)Net sales, cost of sales and selling, administrative and engineering
expenses for 2000 have been reclassified with the adoption of EITF 00-10,
"Accounting for Shipping and Handling Fees and Costs" with no change
in operating income or pretax income for the period presented.
(b) Earnings before interest, taxes, depreciation, and amortization

FULLER BRANDS

IMAGING

COMBINED

Net sales

$ 12,951,874

$ 10,192,261

$ 23,144,135

Cost of sales

6,217,164

6,230,866

12,448,030

Gross margins

6,734,710

3,961,395

10,696,105

Selling, administrative and
engineering expenses

5,854,329

3,392,322

9,246,651

Research and development
Expense

128,480

35,729

164,209

Operating income

$ 751,901

$ 533,344

$ 1,285,245

Corporate income (loss)

( 57,726)

Interest expense

(119,910)

Pretax income

$ 1,107,609

FULLER BRANDS

IMAGING

COMBINED

Net sales (a)

$ 14,104,826

$ 10,574,989

$ 24,679,815

Cost of sales (a)

7,106,048

6,641,607

13,747,655

Gross margins

6,998,778

3,933,382

10,932,160

Selling, administrative and
engineering expenses (a)

5,576,360

3,062,191

8,638,551

Research and development
Expense

117,515

33,099

150,614

Operating income

$ 1,304,903

$ 838,092

$ 2,142,995

Corporate income (loss)

(264,097)

Interest expense

(162,862)

Pretax income

$ 1,716,036

(a)Net sales, cost of sales and selling, administrative and engineering
expenses for 2000 have been reclassified with the adoption of
EITF 00-10, "Accounting for Shipping and Handling Fees
and Costs" with no change in operating income or pretax income
for the period presented.

FULLER BRANDS

IMAGING

COMBINED

Net sales

$ 43,146,430

$ 30,533,772

$ 73,680,202

Cost of sales

21,809,983

18,772,129

40,582,112

Gross margins

21,336,447

11,761,643

33,098,090

Selling, administrative and
Engineering expenses

18,305,865

9,895,155

28,201,020

Research and development
Expense

374,278

95,847

470,125

Operating income

$ 2,656,304

$ 1,770,641

$ 4,426,945

Corporate income (loss)

(109,676)

Interest expense

(399,520)

Pretax income

$ 3,917,749

FULLER BRANDS

IMAGING

COMBINED

Net sales (a)

$ 46,037,906

$ 33,288,668

$ 79,326,574

Cost of sales (a)

23,319,890

20,608,478

43,928,368

Gross margins

22,718,016

12,680,190

35,398,206

Selling, administrative and
engineering expenses (a)

18,237,103

9,659,640

27,896,743

Research and development
Expense

381,529

96,648

478,177

Operating income

$ 4,099,384

$ 2,923,902

$ 7,023,286

Corporate income (loss)

(95,605)

Interest expense

(632,231)

Pretax income

$ 6,295,450

(a)Net sales, cost of sales and selling, administrative and engineering
expenses for 2000 have been reclassified with the adoption of
EITF 00-10, "Accounting for Shipping and Handling Fees
and Costs" with no change in operating income or pretax income
for the period presented.

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