Chesapeake Corporation Announces Agreements to Sell Remaining Display Operations.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--Oct. 1, 2001

Chesapeake Corporation (NYSE:CSK) today announced it has agreed to sell its permanent display operations, Consumer Promotions International, Inc., (CPI) to a management-led investment group. Chesapeake also announced today it has agreed to sell Chesapeake Display and Packaging (Canada) Limited to Atlantic Decorated & Display, Inc., a subsidiary of Atlantic Packaging Products Ltd. of Scarborough, Ontario. Closing of both sales is expected in the fourth quarter, 2001, and the cash proceeds will be used to reduce debt.

Chesapeake's Chairman, President and Chief Executive Officer Thomas H. Johnson said, "These transactions are the last in a series of divestitures that we announced earlier this year, when we announced we were discontinuing Chesapeake's Merchandising and Specialty Packaging segment. We have moved quickly to realign the Company, which will enable us to strengthen our presence in specialty packaging markets where we have leadership positions."

The CPI sale includes facilities in: Mount Vernon, NY; Leicester, England; Noisy le Grand and Rosny sous Bois, France; and Barcelona, Spain. CPI employs approximately 525 employees. CD&P Canada has one plant in Toronto and employs approximately 85 people.

Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging. Chesapeake is a leading European folding carton, leaflet and label supplier and a leader in plastics packaging for niche markets. Chesapeake has over 50 locations in North America, Europe, Africa and Asia. Chesapeake's website 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 folding carton and plastic materials; fluctuations in demand; government policies and regulations affecting the environment; interest rates; fluctuations in foreign exchange rates; the ability of the Company to remain in compliance with its debt covenants; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission. Chesapeake does not undertake any duty to update any forward-looking statements in this news release and encourages users of this release to review public disclosure by Chesapeake subsequent to the date of this release.