CPAC Inc. and TURA AG Discuss
Recent Agreement;
Invite Other Companies to Join in a New
Alliance
February 26, 2002 -- Orlando, FL. At a
press conference held yesterday at the Photo Marketing Association Trade Show at
the Orange County Convention Center in Orlando, FL, Thomas N. Hendrickson, Chief
Executive Officer, CPAC, Inc. (NASDAQ CPAK) and Dr. Thilo Senst, Chief Executive
Officer of TURA AG of Düren, West Germany, discussed the strategy behind the
recent expansion of their joint distribution agreement.
According to Mr. Hendrickson, "CPAC's
corporate strategy has been to grow via acquisition. Between 1985 and 1997 we
completed thirteen acquisitions, successfully transitioning CPAC from a 'silver
recovery company' to a 'specialty chemical company' with interests in both
imaging chemistry and cleaning and personal care chemicals."
"In 1997, CPAC Inc. modified its strategy
somewhat," Hendrickson said. "Rather than achieving growth primarily
through acquisition, we now seek to make strategic investments in compatible
companies. By so doing, we aim to create a formal global alliance to best serve
the traditional silver halide imaging market worldwide."
CPAC, Inc.'s Imaging segment, operating globally
as CPAC Imaging Group, provides imaging chemicals, environmental equipment, and
refining services to the traditional silver halide photographic market. TURA AG
is a 100-year-old German manufacturer and supplier of photographic paper and
film emulsion products to the same market, in addition to wide-format inkjet
printing consumables. Through a broadened partnering relationship announced on
January 10, 2002, each company's core products are now sold through each other's
respective distribution channels.
Hendrickson continued, "Our shareholders
might ask, 'Why invest in the Imaging segment of CPAC's business, which now
comprises only 40% of the Company's total sales?' There are three strong reasons
behind this strategy. First, CPAC believes that silver halide technologies have
a significant global, useful life, and thus, profit opportunities. Second, CPAC
believes that adding photographic films and paper to its product line will
strengthen its chemistry and equipment position. Finally, CPAC acknowledges that
it requires a complete spectrum of products to be competitive with the
multi-billion dollar photographic companies."
"We expect that we will make further
investments in TURA. We also expect to market a significant array of digital
products that fit our combined distribution channels. And we are confident that
the TURA/CPAC alliance will become the platform for bringing other, like-sized
companies into our 'team' strategy."
Dr. Thilo Senst of TURA AG made the following
comments: "TURA is one of the oldest and most traditional manufacturers of
photographic film and papers, and the last family-owned manufacturer of its
kind. Our strategy is to drive growth in three areas.
"In developed nations, TURA targets niche
speciality markets. Private-label film and single-use cameras have enjoyed
significant growth in these countries, and TURA supplies these products on a
just-in-time basis, offering low volume requirements and fast turnarounds. Based
on the number of private-label customers we serve, we believe our company to be
one of the top private-label film manufacturers world-wide."
Senst continued, "In developing markets,
TURA is already a top brand for film and paper. Our flexibility in these markets
has driven annual growth averaging 60% for five years running.
"Our third strategy is to invest in new
digital media. TURA now produces a range of large-format inkjet media, and is
also developing unique products, such as our LuminisFX light panels
and digital textiles that are water-resistant, inflammable, and unrippable.
These products appeal not only to our traditional customers, but also enable
entry into new markets filled with potential new customers."
In closing, Senst said, "CPAC and TURA
together now possess a full range of products, a global manufacturing
infrastructure, renowned R&D capabilities, and unparalleled technical
support. We are working to give other mid-size companies in our industry a place
within this new alliance. And we are living proof, based on TURA's 90% turnover
over last year, that it is possible to find growth in the imaging
industry."
About TURA
Headquartered in Düren, West Germany and
privately held since 1901, TURA AG supplies photographic films, papers,
chemistry, and wide-format inkjet printing consumables to customers in more than
sixty countries worldwide through a distribution network operating in forty
countries. More information is available at tura-film.com.
About CPAC, Inc.
Established in 1969, CPAC, Inc. (cpac.com) is an
international manufacturer and marketer of commercial and household cleaning
products, personal care lines, and prepackaged chemicals and equipment for the
imaging industry, with sales in FY '01 of $105 million. The Imaging Segment
includes three domestic and four international chemical and equipment
manufacturing operations: Trebla Chemical Company (treblachem.com); Allied
Diagnostic Imaging Resources, Inc. (alliedautex.com); CPAC Equipment Division (cpacequipment.com);
CPAC Europe (cpac.be); CPAC Italia (ornano.it); CPAC Africa (cpac.co.za); and
CPAC Asia (cpacasia.com). CPAC's Fuller Brands Segment includes The Fuller Brush
Co. (fullerbrush.com), Cleaning Technologies Group (cpac-ctg.com), and Stanley
Home Products (stanleyhomeproducts.com). Nasdaq: 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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NOTE TO EDITORS: Photos to accompany
this story may be accessed at www.cpac.com/tura.htm
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