CPAC, Inc. Reviews Accomplishments and Outlines Plans
at Annual Shareholder's Meeting
LEICESTER, NY... August 7, 2002 - CPAC, Inc., (Nasdaq: CPAK), a manufacturer and marketer with holdings in the Cleaning & Personal Care and Imaging industries, recapped the year's results and detailed its strategies for growth at its thirty-second annual shareholders' meeting on August 7th in Mt. Morris, NY. The Company also announced that, by a majority vote of all shareholders, the auditing firm of PricewaterhouseCoopers was reappointed and all directors were reelected.
Thomas N. Hendrickson, President and Chief Executive Officer, remarked on recent executive appointments by saying, "With Read McNamara leading the Fuller Brands segment as President, and Steve Baune as President of CPAC's Imaging segment, we now have the management structure in place to execute our strategic objectives."
"Our long-range plan is that Fuller Brands will expand into global markets as we have done with CPAC Imaging," Hendrickson continued. "Fuller Brands will accomplish this expansion using Imaging as a partner, leveraging the existing manufacturing facilities and distribution networks of the Imaging segment."
Hendrickson said, "There is no question: in today's economy, cash is king. CPAC has a strong cash position that has been maintained through sound decision-making and conservative spending policies. Our stated acquisition strategy requires that we use this valuable asset to fuel future growth. But rest assured - we have specific acquisition criteria that narrows potential candidates to only those that offer significant shareholder returns. In this way, we can remain profitable and continue to increase value to our investors."
Read D. McNamara, President of CPAC's Fuller Brands segment, stated that the segment had achieved its top priority for the past fiscal year by stabilizing sales after a downward trend. He continued by saying, "We recently made significant management changes and now have visionary leadership in the field. The entire Fuller Brands team is focused on growth going forward."
Mr. McNamara continued, "With regard to external growth, we have a well-defined acquisition strategy for the Fuller Brands segment. Our organic growth objectives place increased emphasis on new and expanded distribution channels, as illustrated by our profitable and growing relationship with QVC and new specialty catalog partners. Product development is the other cornerstone for growth, with Stanley Home Products, The Fuller Brush Company, and Cleaning Technologies Group each introducing several new products and product enhancements this year."
Steven E. Baune, President of CPAC Imaging, commented on the numerous opportunities in traditional imaging markets worldwide. He said, "There is some conversion to digital taking place in all markets, but at a much slower pace abroad. CPAC's products and services are just beginning to be introduced in many developing economies through our expanding relationship with TURA AG. We're placing more and more emphasis on these foreign countries where, quarter over quarter, we see improvements in sales and profit contributions."
Discussing growth strategies for Imaging, Mr. Baune stated, "We are intent on building alliances with large and small companies whose products complement our own. We are creating a strong, new brand identity for CPAC Imaging that will increase awareness and drive preference for the CPAC brand worldwide. And we will use all channels available to us, including partnering with Fuller Brands and leveraging our TURA relationship, to place our quality products in the hands of new customers across the globe."
Thomas J. Weldgen, CPAC's Chief Financial Officer, discussed financial results for the quarter ended June 30, 2002 and highlighted some additional information about the current conditions and outlook for the company. He stated, "No doubt you have all been concerned about the dramatic stock market swings in recent days. We are pleased to report that our stock price has been stable over the past nine months and we believe this is due to our ongoing dividends, along with our solid cash position and continued strong balance sheet relative to other companies."
An edited transcript of the meeting will be posted to CPAC's web site at www.cpac.com.
About CPAC, Inc.
Established in 1969, CPAC, Inc. (cpac.com) manages holdings in two industries. CPAC's Global Imaging Group develops and markets innovative imaging chemicals, equipment, and supplies at eight business units worldwide. The Fuller Brands segment manufactures commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. 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, 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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