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LEICESTER, NY, Aug. 2, 1999 - CPAC, Inc. (Nasdaq: CPAK) officially
marked the opening of CPAC Asia Ltd., its new photographic chemical manufacturing plant
located in the Wellgrow Industrial Park in Bangkok, Thailand. Operating as part of CPAC
Imaging Group, CPAC Asia was built in response to a growing market share of CPAC's Trebla
brand photographic chemistry in the Pacific Rim.
During a ribbon-cutting ceremony on July 23rd, CPAC
President and CEO, Thomas N. Hendrickson, stated, "While many companies were cautious
about investments in Asia, we remained committed to our strategy of developing a global
presence, and targeted Asia as a prime location. Encouraged by a compounded annual growth
rate of 140 percent in Asian chemical sales served from our U.S. plant over the last two
years, we believe that the timing was right to prepare for a turnaround in this
economy."
Visitors to the ribbon cutting ceremony included such
noted dignitaries as Thailand's Minister of the Interior and Deputy Minister, as well as
members of CPAC Inc.'s Board of Directors.
Stanley H. Gulbin, CPAC Asia's President, remarked,
"It is far more efficient to supply our existing Asian accounts from a regional
plant. Various markets will have different requirements for product type and packaging.
The generous incentives extended to CPAC by the Thai government's Board of Investment,
combined with our proximity to Asian customers, will give us a significant advantage in
the marketplace -- one that translates into increased sales volume, profits, and growth in
the Asian market."
Executive Director, Mr. Akira Mori, commented,
"Initial planning for our Asian plant began in 1996. We assessed the needs of our
customers in the region and integrated those requirements into the final design. The
result is a state-of-the-art chemical manufacturing facility where CPAC's proprietary
photographic chemical formulations can be efficiently manufactured and distributed
throughout the Pacific Rim."
Mrs. Chawvanee Mori, CPAC Asia's Managing Director, said,
"Our new location offers a positive business climate and a very strong and qualified
labor force, both of which will enable us to build our Asian customer base. CPAC
Asia is proud to be a part of the Bangkok business community and we look forward to
contributing to the growing economy of this region."
The new 33,000 square-foot plant will serve customers in
China, Japan, Korea, Hong Kong, Taiwan, Philippines, Indonesia, Malaysia, Australia, New
Zealand, India and Thailand. The facility has a current capacity of 200,000 gallons of
chemical concentrates a month. Like CPAC's recently expanded photographic chemical
manufacturing facility in Belgium, CPAC Asia can be enlarged to accommodate future growth,
up to more than double the initial size of the plant.
Over the past year, CPAC, Inc. has increased its
manufacturing and warehouse space by 168,000 square feet, culminating with the
establishment of CPAC Asia. In Herentals, Belgium, CPAC Europe recently completed a 30,000
square foot addition and The Fuller Brush Company added 105,000 square feet to its
distribution center in Great Bend, Kansas. These additions bring CPAC Inc.'s worldwide
total to nearly 870,000 square feet.
CPAC Imaging Group currently operates imaging chemical
manufacturing facilities in the United States, Belgium, Italy, South Africa and Thailand.
CPAC, Inc. is an acquirer, developer and licensee of brand names, and produces and markets
specialty chemicals and environmental compliance equipment for the worldwide imaging
industry. In addition, CPAC, Inc. manufactures chemicals and hard goods for the cleaning
and personal care market through its Fuller Brush subsidiary. The Company celebrates its
thirtieth year in business this year. More information is available at:
http://www.cpac-fuller.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.
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