LEICESTER, NY... October 4, 2006 - CPAC, Inc. (Nasdaq: CPAK) announced today that it has entered into a new financing agreement with HSBC Business Credit (USA) Inc. ("HSBC Bank") to provide up to $12 million in Senior Secured Revolving Credit. The agreement provides asset based lending capabilities to the U.S. operations of CPAC, Inc., to finance future working capital needs, general corporate requirements and issuance of letters of credit. The arrangement was finalized on September 28, 2006. On that same date, the credit facility previously provided by Bank of America, N.A. was cancelled. The HSBC facility replaces it.

Commenting on the new arrangement, Thomas J. Weldgen, Chief Financial Officer of CPAC, Inc. said, "We have maintained a relationship with HSBC Bank for over 10 years through various international banking services, and they have provided financing and operating cash needs for our Thailand subsidiary since its inception. We are pleased to be expanding this relationship to the U.S. HSBC Bank understands our global business, and will bring greater flexibility to our routine banking activities while providing added financing opportunities for the future of the Company."



About CPAC, Inc.
Established in 1969, CPAC, Inc. (www.cpac.com) manages holdings in two industries. The Fuller Brands segment manufactures commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. The CPAC Imaging segment develops and markets innovative Imaging chemicals, equipment, and supplies at seven operations worldwide. Products are sold under more than 350 registered trademarks. 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 that 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.