Chesapeake Focuses on Profitability and Growth at Annual Meeting.

RICHMOND, Va.--(BUSINESS WIRE)--April 28, 1999--

At Chesapeake Corporation's (NYSE:CSK) annual meeting today, held in Richmond, Va., Chesapeake President and Chief Executive Officer Thomas H. Johnson highlighted Chesapeake's success in 1998 in achieving its two key objectives: to rapidly improve the financial performance of the company and to position Chesapeake for long-term, sustainable growth. Johnson described plans for Chesapeake's business unit, Wisconsin Tissue, to build a new tissue mill and converting complex in North Carolina. He spoke about Chesapeake's recent acquisition of Field Group, one of Europe's leading packaging suppliers, which has led to Chesapeake raising its earnings expectations for the last three quarters of 1999.

Calling 1998 a key transition year to position Chesapeake for long-term growth and increased shareholder returns, Johnson said the company was "well on its way to achieving top quartile returns." He pointed to Chesapeake's net sales increase of 10 percent; an increase in earnings before interest and taxes of 60 percent; an earnings per share (EPS) increase of 75 percent; an improvement in return on equity (ROE) from under 3 percent to over 10 percent; and an increase in cash flow from operations of $122 million to illustrate Chesapeake's improved financial performance.

Johnson addressed why Chesapeake's shift from being a natural resources based, commodity producer to a marketing focused supplier of specialty products was so important for the company's future. "It is through this transformation that we aim to deliver improved shareholder returns and higher, sustainable growth opportunities."

Johnson emphasized how plans to build a new tissue mill and converting operation in Halifax County, North Carolina, for Chesapeake business unit Wisconsin Tissue are significant for future growth and profitability. "This project will strengthen our position in the marketplace by improving our customer service to the important growth markets of the Southeast, and by lowering our cost position through new, modern technology. Thus, it should provide attractive financial returns for our shareholders well into the 21st century."

Johnson also explained why the Field acquisition is a strategic move for Chesapeake's future by emphasizing that Field offers Chesapeake a new platform for growth. "For the partial year of our ownership, it is expected to be immediately accretive to earnings, providing $.10 to $.20 per share to Chesapeake's EPS for the last three quarters of this year."

Among Field's strengths, Johnson noted, is its leading market position as the largest packaging supplier in the United Kingdom and the third largest packaging supplier in Europe. "Field has found numerous ways to differentiate itself through an end-use marketing focus." He added, "Field enjoys a reputation for quality and innovation ...and has an excellent management team and a blue-chip customer base."

Field specializes in the design and production of cartons, containers, printed leaflets, and labels. Specific markets that Field focuses on include: international and branded products; pharmaceuticals and healthcare; and selected food and household markets.

Johnson said another important step in Chesapeake's strategic transformation took place in April 1999, when the company announced an agreement to sell the majority of Chesapeake's timberlands and its building products business for $186 million. "Proceeds from the sale will be used to reduce debt and re-purchase stock." He added, "I would like to publicly thank all of the employees of these two Chesapeake business units who have contributed so much over the years to Chesapeake."

Chesapeake Corporation, headquartered in Richmond, Va., is a tissue and specialty packaging company with over 55 locations in the United States, Canada, Mexico and Europe. Chesapeake's web site is 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.