CPAC, Inc. Announces Increased EPS for Fourth Quarter
and Full Year
Declares 7.7% Increase in Quarterly Cash Dividend

LEICESTER, NY, June 8, 2000 – CPAC, Inc. (Nasdaq: CPAK) an international manufacturer and marketer of cleaning chemicals and related accessories, personal care products, and prepackaged imaging chemical formulations, today reported fourth quarter and full-year results for fiscal year 2000 ended March 31, 2000. At its regular meeting on June 7, 2000, CPAC’s Board of Directors declared a quarterly cash dividend in the amount of $0.07 per share (a 7.7 percent increase), payable on June 29, 2000, to shareholders of record at the close of business on June 22, 2000.

Consolidated fourth quarter net sales were $27.9 million, compared to $28.4 million for the same period last year. Consolidated net income for the quarter was $1.6 million, an increase of 28 percent, versus $1.25 million last year.

Consolidated fourth quarter net income, excluding a tax refund, was $1.34 million, an increase of 7 percent, versus $1.25 million last year. The Company received a non-recurring tax refund of $0.04 per diluted share during the quarter, resulting from the write-off of the Company's previously owned Venezuelan investment. Fourth quarter earnings per share excluding the tax refund increased 21 percent to $0.23, from $0.19 per diluted share in the prior year. Earnings per share for the fourth quarter including the tax refund increased to $0.27 per diluted share.

Fiscal year 2000 consolidated net sales were $109.5 million, compared to $112.7 million for fiscal year 1999. Net income for fiscal year 2000 was $5.33 million excluding the tax refund, compared with $5.62 million for last year. Fiscal year 2000 net income including the tax refund was $5.6 million. Earnings per share excluding the tax refund increased 6 percent to $0.87 from $0.82 per diluted share last year, due to fewer shares outstanding. Earnings per share including the tax refund increased 11 percent to $0.91 per diluted share.

"Fiscal 2000 was a year of challenge and change within the industries we serve. We focused on positioning both of our business segments to be more competitive going forward, and made significant progress," said Thomas N. Hendrickson, CPAC President and Chief Executive Officer.  "As previously reported, we took strong actions early in the fiscal year to reduce overhead in the Fuller Brands business and made key appointments to lead these businesses into the new century. We also took steps to insure that our growing Pacific Rim imaging business remains strong and competitive."

• Completed the restructuring of Cleaning Technologies Group (CTG), including an expense reduction of $1,000,000 annually, and the appointment of Glenn Jackling as President

• Reorganized the Stanley Home Products (SHP) direct selling business with the appointment of Wendy Clay as Chief Operating Officer, to better position SHP to leverage CPAC’s resources and accelerate sales and profit growth

• Announced a new partnership to distribute Franklin Cleaning Technology™ products through the 9,000 distributor customer base of Lagasse Bros., Inc.

• Aggressively expanded our "e-business" capabilities to capitalize on the consumer brand equity of Fuller Brush, including a partnership with Quixtar, the new e-commerce business of Amway (www.quixtar.com), and Home Trends, a major marketer of household products (www.hometrendscatalog.com)

• Opened a new 33,000 square-foot CPAC Asia photographic chemical manufacturing factory in Bangkok, Thailand to serve customers in the Pacific Rim
  
• Formed an alliance with Management Cleaning Controls (MCC), a national cleaning services provider

• Opened a new 106,000 square-foot distribution facility to consolidate all warehousing and distribution operations for Fuller Brands

• Announced a new partnership with TURA AG to manufacture photographic chemistry for global distribution

• Strengthened and expanded the Board by adding Dr. Jerold L. Zimmerman, the Ronald L. Bittner Professor of Business Administration at the William E. Simon Graduate School of Business Administration at the University of Rochester

Fuller Brands segment sales for the fourth quarter were $15.8 million versus $17.2 million in the comparable quarter last year. Fourth quarter operating profit was $1.53 million, compared with $1.75 million last year.

Fiscal year 2000 sales were $64.1 million, compared to fiscal 1999 sales of $69.3 million. Operating profit for the year was $6.16 million compared with $6.5 million during fiscal year 1999.

"As we have discussed throughout the year, fourth quarter and full-year revenues were significantly impacted by a major decline in sales to a consumer catalog customer. In addition, sales in both our Cleaning Technologies Group and Stanley Home Products businesses were below internal targets," Mr. Hendrickson said. "We directed a considerable amount of effort to improving the efficiency and productivity of our Fuller Brands operation during fiscal 2000, and we are satisfied that we have programs in place that will improve the profitability of this portion of the business. Our primary focus in fiscal 2001 will be to drive top line growth to complement the progress made on the operational side."

Imaging segment sales increased 7 percent in the fourth quarter to $12.1 million, versus $11.3 million for last year’s fourth quarter. Operating profit increased by 91 percent to $879,000 compared with $464,000 million in last year’s fourth quarter.

Full year imaging segment sales increased by 5 percent to $45.5 million compared with $43.4 million last year. Operating profits increased 16 percent, to $3.96 million for the full year, versus $3.4 million for the prior year.

"Imaging segment sales and profits were up for both the quarter and fiscal year, and reflect the strength of our international color imaging business and solid performance from our black-and-white imaging subsidiary, Allied Diagnostic Imaging Resources," Mr. Hendrickson said.

"We made significant progress implementing our reorganization plan during fiscal 2000," Mr. Hendrickson commented. "With much of this work completed, we have shifted our primary focus in fiscal 2001 to growing the top line. This will include pursuing additional acquisitions that fit our strategic objectives."

CPAC, Inc. is an international manufacturer and marketer of industrial and household cleaning products and related accessories, personal care products, and prepackaged chemical formulations, supplies, and equipment systems to the imaging industry. The company operates in two business segments: Cleaning and Personal Care (Fuller Brands) and Imaging. The Fuller Brands segment includes The Fuller Brush Company (commercial and consumer), Stanley Home Products, and Cleaning Technologies Group. CPAC's Imaging segment serves the global Imaging market and includes Trebla Chemical Company, Allied Diagnostic Imaging Resources, Inc., CPAC Equipment Division, and four international chemical manufacturing operations. CPAC, Inc. shares trade on the Nasdaq National Market System under the ticker symbol "CPAK''. More information is at the Company's web site (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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**Earnings before interest, taxes, depreciation, and
amortization