Chesapeake Enters Into Letters of Intent for Packaging Plant.

RICHMOND, Va.--(BUSINESS WIRE)--July 26, 1999--

Chesapeake Corporation (NYSE:CSK) announced today that it signed a letter of intent for its wholly owned subsidiary, Chesapeake Packaging Co., to acquire a corrugated container plant near Henderson, N.C., currently owned by Georgia-Pacific Corp. (NYSE:GP).

The plant employs approximately 50 people and manufactures shipping and product packaging.

Robert F. Schick, president of Chesapeake Packaging Co., said the planned acquisition is in line with Chesapeake Packaging's growth strategy. "We are excited to acquire this plant, which we believe will enhance customer relationships and expand our geographic coverage." Chesapeake Packaging's most recently completed acquisition was of Capitol Packaging Corporation, a specialty packaging company in Denver, Colo., in November 1998.

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

Chesapeake Packaging Co.'s parent company, Chesapeake Corporation, is a specialty packaging and tissue company with over 55 locations in the United States, Canada, Mexico, and Europe. Chesapeake's web site is http://www.cskcorp.com.

This press release may contain "forward-looking statements" that involve risks and uncertainties. Political, climatic, currency, regulatory, technological, competitive, and other factors could cause actual results to differ materially from those anticipated in the forward-looking statements.