Chesapeake's Display Business Strengthens Capabilities Through New Acquisition.

RICHMOND, Va.--(BUSINESS WIRE)--Aug. 17, 1999--

Chesapeake Corporation (NYSE:CSK) announced today that its wholly owned subsidiary, Chesapeake Display and Packaging Company, has signed a letter of intent to acquire Consumer Promotions International Incorporated (CPI), one of the world's foremost designers and manufacturers of point-of-purchase displays. CPI, based in Mount Vernon, N.Y., has operations in the United States, the United Kingdom and France, and has approximately 300 employees. CPI's annual sales are approximately $50 million. CPI President and Chief Executive Officer Michael DeGennaro has agreed to continue in his role as president when the acquisition is final.

Chesapeake President and Chief Executive Officer Thomas H. Johnson said, "CPI is recognized globally for its excellence in design and production of free-standing permanent displays. It also provides complete department store design solutions for the luxury goods, pharmaceutical and healthcare, and branded merchandise sectors. CPI has further leveraged its strengths by developing innovative merchandising concepts for today's retail environment, including e-commerce applications. We are very pleased that Michael DeGennaro will continue as president of CPI. The addition of CPI signifies the trend of Chesapeake Corporation's future as a specialty packaging and merchandising services provider, strongly focused on fast-growing markets that value creative solutions and intellectual capital. "

Chesapeake Display and Packaging, with offices in the United States, Canada and France, is the largest manufacturer of temporary, promotional displays in the world. CPI is one of the few permanent display manufacturers to offer its promotional management services on a global basis. CPI's expertise and reputation for permanent display design and production complement Chesapeake Display and Packaging's international array of display and merchandising services. DeGennaro said, "With CPI becoming part of Chesapeake, we will be able to bring an even broader array of merchandising services to help our customers promote brand awareness at the retail level."

Johnson added, "CPI's geographic reach and customer base not only complement Chesapeake Display and Packaging, but enhance the capabilities of Field Group, Chesapeake's United Kingdom-based subsidiary. Field Group is a leading European packaging supplier, specializing in the design and production of cartons, containers, printed leaflets, and labels. Chesapeake Display and Packaging's North American operations will benefit from new products and services provided by CPI, while our European display group will gain critical scale. These expected results are why we believe the acquisition of CPI will be immediately accretive to Chesapeake's earnings."

Closing of the sale is subject to customary conditions, including completion of due diligence activities, negotiation of definitive purchase agreements, and the approval of the transaction by regulatory authorities and by Chesapeake's Board of Directors.

Chesapeake Corporation is a specialty packaging and tissue company with over 50 locations in the United States, Canada, Mexico and Europe. Chesapeake's web site is www.cskcorp.com.

This news release, including comments by Thomas H. Johnson, contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that may cause Chesapeake's actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: competitive products and pricing; production costs, particularly for raw materials such as waste paper and corrugated box and display materials; the finalizing of the planned partnership agreement with Georgia-Pacific Corp.; fluctuations in demand; government policies and regulations affecting the environment; interest rates; currency translation movements; Year 2000 compliance issues; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission.