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ULTRA-PAC REPORTS SECOND QUARTER RESULTS

 MINNEAPOLIS, Sept. 13 /PRNewswire/ -- Ultra Pac, Inc. (NASDAQ: UPAC) today reported net sales of $11,198,000 for its second quarter ended July 31, 1993. This is an increase of 57 percent over net sales of $7,136,000 in last year's second quarter. Net earnings were $294,000, or 8 cents per share, in this year's second quarter, compared with net earnings of $464,000, or 13 cents per share, for the same period last year.
 For the six months ended July 31, 1993, net sales were $19,800,000 and net earnings were $347,000, or 9 cents per share. This compared with net sales of $12,653,000 and net earnings of $799,000, or 24 cents per share, in last year's first six months.
 Growth in net sales for both the second quarter and first half was primarily the result of increased demand for both new and existing products and the expansion of the company's customer base. An anticipated decline in net sales from compact disc packaging was substantially offset by an acceleration of demand for products directed toward the berry industry.
 Lower second quarter and first half earnings continued to reflect certain negative factors that were identified and addressed during the third and fourth quarters of last year, namely increased purchases of more expensive extruded plastic sheet from outside vendors and higher overhead costs. The company's programs to address these issues have begun to take effect and are expected to have a positive impact on results during the balance of the fiscal year. In addition, earnings in the first half of fiscal 1994 have been impacted by competitive pricing pressures, as well as start-up costs associated with the company's new recycling facility installed in March 1993.
 Cal Krupa, president and CEO said, "We expect our profit margins to improve gradually during the balance of the year as our new recycling facility begins to reduce raw-material costs and our third extrusion line is installed during September. This will reduce, but not entirely eliminate, our need to purchase plastic sheet from outside vendors. We will be using our new third extrusion line primarily for clear plastic sheet, rather than side-by-side, multi-colored material, so we do not anticipate the same problems we experienced with our second extrusion line."
 Ultra Pac, Inc., based in Rogers, Minn., is a market leader in the design, manufacture and marketing of plastic packaging made primarily from polyethylene teraphthalate (PETE), the world's most widely recycled plastic material. The company offers a wide range of products and value-added services to the bakery, produce, deli and floral industries.
 ULTRA PAC, INC.
 STATEMENTS OF EARNINGS
 (Unaudited)
 (000)
 Three months ended Six months ended
 July 31, July 31,
 1993 1992 1993 1992
 Net sales $11,198 $ 7,136 $19,800 $12,653
 Cost of products sold 8,053 4,755 14,248 8,282
 Gross profit 3,145 2,381 5,552 4,371
 Operating expenses
 Marketing and sales expense 2,102 1,329 3,883 2,403
 Administrative expense 393 271 803 545
 Total operating expense 2,495 1,600 4,686 2,948
 Operating profit 650 781 866 1,423
 Interest expense 184 46 314 157
 Earnings before income taxes 466 735 552 1,266
 Income taxes 172 271 205 467
 Net earnings $294 $464 $347 $799
 Earnings per common and common
 equivalent share $0.08 $0.13 $0.09 $0.24
 Weighted average number of
 common and common equivalent
 shares outstanding 3,767,338 3,629,220 3,767,537 3,389,872
 -0- 9/13/93
 /CONTACT: Jack Falker of Swenson Falker Associates, 612-371-0000; or Brad Yopp of Ultra Pac, 612-428-8340/
 (UPAC)


CO: Ultra Pac, Inc. ST: Minnesota IN: SU: ERN

KH-xx -- MN011 -- 1291 09/13/93 12:06 EDT
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Date:Sep 13, 1993
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