Company Contact:
Wendy F. Clay
VP Administration, CPAC
Karen G. McCulley
Corp. Comm. Mgr, CPAC
585-382-3223

August 6, 2002

CPAC, INC. SALES UP IN FIRST QUARTER;
DECLARES DIVIDEND OF $.07

LEICESTER, NY... August 6, 2002 - CPAC, Inc. (Nasdaq: CPAK), a manufacturer and marketer with holdings in the Cleaning & Personal Care and Imaging industries, today reported first quarter results for Fiscal Year 2003 ended June 30, 2002. These results reflect an accounting change from the Company's adoption of Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets".

At its regular meeting on August 6, 2002 CPAC's Board of Directors declared a quarterly cash dividend in the amount of $0.07 per share, payable on September 20, 2002 to shareholders of record at the close of business on August 23, 2002.

Consolidated Results
Net sales for the quarter were $24.6 million compared to $24.3 million for the first quarter of last year, an increase of 1.4%. Income before the accounting change was $711,000 or $0.14 per diluted share versus a pro forma income of $767,000 or $0.14 per diluted share for the quarter ended June 30, 2001. This pro forma number reflects an additional $59,000 of income above the reported earnings of $708,000, as if SFAS No. 142 was effective last year. (See Supplemental Pro Forma Income Comparison attached).

The accounting change resulted in a one-time $6.3 million reduction in goodwill taken in compliance with SFAS No. 142. After this adjustment, CPAC reported a net loss of $1.08 per diluted share in the most recently completed quarter. The goodwill write-down is related to the Company's 1997 acquisition of Cleaning Technologies Group. After the write-down, the Company's tangible net book value per share is $8.71.

Thomas N. Hendrickson, CPAC's President and CEO, commented, "We are encouraged by the modest revenue growth experienced by both segments, but continued worldwide economic uncertainty makes future growth predictions impossible. Part of the 7% decline in income (before the cumulative effect accounting adjustment) is a result of our decision to increase marketing initiatives for both segments of our business."

Fuller Brands
-  Fuller Brush Company sales in the first quarter exceeded prior year with operating income up significantly.

-  The Fuller Brush / QVC relationship is exceeding expectations. New 'Fuller Brush Household Care Hour' programs will be broadcast at 6:00 a.m. and 10:00 p.m. EST on August 9th and two additional one-hour shows will air in September.

-  Fuller Brush Export and Fuller Brush Catalog / Internet sales were up for the quarter over the same period in the prior year.

-  Stanley Home Products has shown renewed vitality in its recruiting efforts, resulting in an important net increase in the number of active representatives.

-  Cleaning Technology Group's sales to a large retail customer, currently in Chapter 11, did not change materially in the quarter. The Company continues to closely monitor this account.

Read McNamara, President of Fuller Brands, commented, "We've made significant progress in a number of our strategic growth areas for FY '03 - product development and channel development. We've introduced a new line of Fuller-branded power washer cleaning products, and Stanley Home Products unveiled ten new products at its convention this week in Las Vegas. We've also enhanced our channels of distribution by focusing on gaining new specialty catalog partners. We are off to a good start in the first quarter, with segment sales up over prior year."

CPAC Imaging
-  Through the introduction of new film-specific medical developing chemistries, Allied Diagnostic Imaging Resources, Inc., CPAC's Health Care imaging unit, is gaining increased promotional support from film manufacturers.

-  TURA-branded photographic chemistry is now being manufactured and sold by CPAC Europe, CPAC Asia, and CPAC Africa.

-  The general short-term worldwide demand outlook appears very difficult as has been cited by other Imaging industry leaders.

Steven E. Baune, President of CPAC Imaging, commented, "Our partnership with German film and paper manufacturer TURA AG is enhancing nearly every aspect of the CPAC Imaging business. We are seeing increased private label opportunities, and are finding acceptance for CPAC-branded products among TURA's established customer base. Both companies will exhibit at Photokina, the world's largest trade show in Cologne, Germany in September 2002 to build acceptance among European customers, a solid growth market for CPAC Imaging."

Other Financial Information
Thomas J. Weldgen, CPAC's Chief Financial Officer, remarked, "Given the challenging economic times, CPAC maintained its favorable cash position relative to other companies. Cash flows for the quarter remain solid, starting with $8.0 million in cash on April 1, 2002. In the quarter, investments of $0.5 million were made in new property and equipment, $0.4 million of debt was paid down, and dividends of $0.4 million were distributed to shareholders. At June 30, 2002 the Company had $7.4 million in available cash, no outstanding balance on its $20 million corporate line of credit with Bank of America, working capital of $31 million, and a strong balance sheet with continued substantial opportunity for leverage."

The Company will hold its twenty-first annual shareholders' meeting on August 7th at the Genesee River Restaurant and Reception Center in Mt. Morris, NY commencing at 11:00 a.m. EST. Highlights of management speeches will be posted on-line at www.cpac.com following the meeting.

About SFAS No.142
Net loss for the quarter of $5.6 million or $1.08 per share includes a one-time, non-cash charge from the Company's adoption of Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets". Under SFAS No. 142, companies are no longer allowed to amortize goodwill on their balance sheets. An annual impairment test of goodwill is performed in lieu of the quarterly goodwill amortization. CPAC completed the impairment test during the first quarter of fiscal 2003, which resulted in goodwill being reduced by $6.3 million or $1.22 per diluted share, net of income tax benefits of $4.2 million.

About CPAC, Inc.
Established in 1969, CPAC, Inc. (cpac.com) manages holdings in two industries. CPAC's Global Imaging Group develops and markets innovative imaging chemicals, equipment, and supplies at eight business units worldwide. The Fuller Brands segment manufactures commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. Stock is traded under the symbol: CPAK.

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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