Nashua Corporation announces filing of initial public offering for 3,840,000 shares of common stock of Cerion Technologies.

NASHUA, N.H.--(BUSINESS WIRE)--March 21, 1996 -- Nashua Corporation (NYSE: NSH) announced today that its subsidiary, Cerion Technologies Inc. (formerly Nashua Precision Technologies), has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of 3,840,000 shares of common stock. Of the total, 1,615,000 shares are being offered by Cerion and 2,225,000 shares are being offered by Nashua as the selling stockholder.

William Blair & Company, L.L.C. will sole-manage the offering. The selling stockholder has granted the underwriters an option to purchase up to 576,000 additional shares to cover over-allotments, if any. Upon completion of the offering, Nashua will continue to own approximately 45.3% of Cerion's common stock (approximately 37.0% if the underwriters' over-allotment option is exercised in full). The offering is expected in mid-May at an estimated price of $12 to $14 per share. Net proceeds to Cerion will be used for capital expenditures, primarily in connection with an additional manufacturing facility, working capital and other general corporate purposes. Net proceeds from the sale of shares by Nashua in the offering will be used to reduce indebtedness.

Headquartered in Champaign, Illinois, Cerion Technologies Inc. manufactures precision-machined aluminum disk substrates, which are the metallic platforms of magnetic thin film disks used in the hard drives of portable and desktop computers, network servers and add-on storage devices. Cerion also uses its core competencies in precision machining to produce aluminum organic photoconductor drum substrates for laser printer cartridges.

Nashua Corporation offers a diverse mix of products, including thermal papers, pressure-sensitive labels and specialty papers, copier and laser printer supplies and photofinishing services.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

CONTACT: Daniel M. Junius

Nashua Corporation

[phone]

or

Shez K. Bandukwala

William Blair & Company, L.L.C.

[phone]