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

June 6, 2002

CPAC, Inc. Announces Fourth Quarter and Full-Year Results;
Declares Quarterly Cash Dividend of $.07

LEICESTER, NY... June 6, 2002 - CPAC, Inc. (Nasdaq: CPAK), a manufacturer and marketer with holdings in the Cleaning & Personal Care and Imaging industries, today reported fourth quarter and full-year results for the fiscal year ended March 31, 2002. At its regular meeting on June 5, 2002, CPAC's Board of Directors declared a quarterly cash dividend in the amount of $0.07 per share, payable on June 28, 2002 to shareholders of record at the close of business on June 19, 2002.

Consolidated Results The Company reported fourth quarter net sales of $24.1 million and net income of $419 thousand, or $0.08 per diluted share, compared with net sales of $25.2 million and net income of $724 thousand, or $0.13 per diluted share, for the same period last year.

For the full year, consolidated sales were $97.8 million and net income was $2.9 million or $0.56 per diluted share, compared with net sales of $104.5 million and net income of $4.6 million, or $0.82 per diluted share, for the previous full fiscal year period.

Thomas N. Hendrickson, CPAC's President and Chief Executive Officer, commented, "CPAC's domestic businesses were impacted most heavily this year by the economic recession which continued to affect the photographic, retail, hospitality, travel, and tourism markets through the fourth quarter. We are beginning to see signs of improvement and are taking bold steps to refocus the company by segment, starting with the appointment of key management in the positions of President of the Fuller Brands segment, President of The Fuller Brush® Company, and President of CPAC's Global Imaging Group. These appointments and other initiatives implemented in the last year, coupled with a stated concrete plan for external growth, position the company to achieve top line expansion, overall profit improvement, and increased shareholder value."

Fuller Brands Highlights
-  Read D. McNamara joined CPAC as President of its Fuller Brands segment, bringing over 25 years of retail experience to the organization.

-  Stanley Home Products added e-commerce capabilities to its web site at shponline.com. Combined incremental Internet sales for Stanley and Fuller Brush now approximate $1 million per year.

-  In March, Fuller hosted its first 'Fuller Brush Household Care Hour' on QVC, the network and e-commerce leader, adding a powerful new channel of distribution for Fuller's home care products.

-  Bob Gey, former President of Pentair, Inc. with broad experience in mergers & acquisitions and corporate growth, was appointed President of The Fuller Brush Company in April 2002.

Read McNamara, President of Fuller Brands, commented, "The segment begins the year with a strengthening economy and perceptible sales momentum in all operating units. Through a new agreement announced May 14, 2002 with investment banking firm Bank of America Private Company Advisory Services, we are accelerating our external growth program with a focus on acquisitions to augment our position in branded cleaning products."

Global Imaging Group Highlights
-  CPAC's health care chemical unit, Allied Diagnostic Imaging Resources, Inc., signed multi-year agreements with Radiology Partners, Inc. and Premier, Inc. These group purchasing organizations give Allied access to more than 1800 U.S. hospitals and health care facilities and 1500 clinics and physician practices, greatly increasing Allied's visibility and strengthening end-user relationships.

-  CPAC, Inc. purchased a 19% minority equity interest in TURA AG, a German manufacturer of photographic film and paper. TURA's products, when combined with those of CPAC Imaging Group, create a comprehensive product offering for photo labs.

-  Steven E. Baune was hired in May 2002 to lead the Global Imaging Group as President, focusing the eight Imaging business units on the goal of becoming a leader in the global marketplace.

Mr. Hendrickson remarked, "Our U.S. Imaging operations struggled throughout the year with ongoing competitive pressure and the effects of the recession. In contrast, our foreign units continue to report excellent performance, increasing sales by more than 8% for the most recently completed fiscal year and posting a cumulative annual growth rate of 20.6% since FY '99, after the effect of currency translation. Our broadened relationship with TURA and the recent appointment of Steve Baune as President of CPAC Global Imaging underscore our focus on enhancing global competitiveness."

The strong U.S. dollar and high currency translation rates negatively impacted foreign sales and operating results for all foreign locations for the fiscal year. Translated at last year's rates, sales would have been $774,000 higher, resulting in a sales increase of 14.7% versus the actual increase of 8.2%. The translation rates also negatively affected pretax income. If translated at the prior year's rates, pretax income for the year would have been $88,000 higher. This negatively impacted net income by $0.01 per diluted share.

Other Financial Information
The statement of cash flows was strong for the year, starting with $8.9 million in cash. $1.7 million was invested in new property and equipment, $1.8 million of CPAC stock was repurchased in the marketplace, $0.6 million of debt was paid down, and dividends of $1.5 million were distributed to shareholders. Depreciation and amortization were approximately $3.5 million for the year with total capital additions of $1.7 million. At March 31, 2002 the Company had $8.0 million in available cash, no outstanding balance on its $20 million corporate line of credit, working capital of $30.4 million, and a strong balance sheet with continued substantial opportunity for leverage.

In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS No. 142, "Goodwill and Other Intangible Assets". Under this pronouncement, companies will no longer amortize goodwill and will be required to test on an annual basis for impairment. The Company will adopt SFAS No. 142 in the first quarter of fiscal 2003. Adoption will reduce annual amortization expense by approximately $335,000 and will result in a one-time non-cash charge. The Company is currently evaluating the one-time charge and estimates the goodwill writedown will be between $5.5 and $6.5 million, net of tax impact. Such charges are non-operational in nature and will be reflected separately as a cumulative effect of an accounting change in the consolidated statement of operations. The amortization expense and goodwill largely resulted from the Company's 1997 acquisition of Cleaning Technologies Group, a business unit in CPAC's Fuller Brands segment.

Mr. Hendrickson commented, "While the new accounting regulations require a new evaluation method for goodwill, we remain positive about the future of Cleaning Technologies Group and continue to project it to be a contributor to our growth initiatives."

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 for The Fuller Brush Company, Stanley Home Products, and Cleaning Technologies Group. 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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