CPAC, Inc. Fourth Quarter Sales Up
Company Posts Year-End Results and Announces Dividend

Leicester, NY, June 3, 1999 – CPAC, Inc. (Nasdaq NNM: CPAK) today reported record sales for its fourth quarter and fiscal year ended March 31, 1999. The Company also stated that on June 2, 1999, its Board of Directors had declared a quarterly cash dividend of $0.065 per share payable on June 29, 1999 to shareholders of record at the close of business on June 18, 1999.

CPAC, Inc. fourth quarter sales increased 4% to $28.4 million versus $27.2 million last year. Net income for the three months was even with last year at $1.25 million. Earnings per share were up 5.6% to $0.19 per diluted share, compared to $0.18 per diluted share last year.

Fourth quarter sales for the Fuller Brands segment grew 4% to $17.2 million from $16.6 million last year. Operating income for the quarter was $1.75 million compared with $1.96 million last year. Imaging segment sales were up 6% for the quarter to $11.3 million, versus $10.6 million last year. Operating income in Imaging was $464,000 compared with $663,600 in the fourth quarter last year.

Commenting on fourth quarter results, Thomas N. Hendrickson, CPAC, Inc. Chief Executive Officer, said, "Over 75% of our minilab customers in the U.S. have now converted to our new patented TriPhaseÔ color developer. Internationally, imaging chemical and silver recovery equipment sales to Asia were strong in the fourth quarter. We are on schedule to open our new CPAC Asia plant in Thailand in the second quarter of fiscal year 2000."

Mr. Hendrickson continued, "In the Fuller Brands segment, Cleaning Technologies Group (CTG) sales were up 13% with the introduction of new distributor-based marketing programs. We also recently announced a strategic alliance for supply and joint product development. Our intent is to partner with national distributors in the commercial cleaning market to vertically integrate manufacturing, distribution and labor services. We will be announcing an E-commerce alliance for this part of our business in the very near future." Mr. Hendrickson added that CTG sales carry a lower gross margin, thus impacting quarterly operating profits for the segment.

CPAC, Inc. sales for the fiscal year were up 6% to $112.7 million from $106.0 million last year. Net income for the year was down 18% to $5.62 million or $0.82 per diluted share, from $6.82 million or $0.95 per diluted share last year.

On a segment basis, Fuller Brands’ sales were up 12% for the fiscal year to $69.3 million versus $61.8 million last year. Operating income for the segment was $6.5 million compared with $7.5 million last year. Sales in the Imaging segment were down 2% for the fiscal year to $43.4 million versus $44.3 million one year ago. Operating income for the segment was $3.4 million compared with $4.4 million last year.

Commenting on year-end results, Thomas N. Hendrickson said, "All divisions of the Fuller Brands side of the business reported higher sales for the fiscal year. Foreign imaging chemical sales were also improved with the addition of CPAC Africa in April 1998. We are continuing to invest in strategic global locations that will be capable of producing chemicals for either segment of our business."

According to Mr. Hendrickson, CPAC, Inc. net income for the year was negatively impacted by the delayed completion of a manufacturing consolidation in the Fuller Brands segment that minimized expected efficiencies from the move. "Bob Isaacs has returned to the Company as Chief Operating Officer, and we are projecting that he will bring about additional cost savings to improve the bottom line," he said.

CPAC, Inc. is an acquirer, developer, and licensee of brand names in two industry segments – Cleaning and Personal Care (Fuller Brands) and Imaging. Its Fuller Brands segment is comprised of The Fuller Brush Company, Stanley Home Products and Cleaning Technologies Group. The Imaging segment, is comprised of Allied Diagnostic Imaging Resources, Trebla Chemical Company, CPAC Equipment Division, and four international chemical manufacturing subsidiaries. CPAC, Inc. shares are traded over the Nasdaq National Market System under the ticker symbol ‘CPAK’. Additional information is available on the Company’s website (www.cpac-fuller.com).

(UNAUDITED)