<B>Chesapeake Reports Sharp Decline in Earnings</B>

Chesapeake Corp. announced fourth quarter income from continuing operations, before nonrecurring items, of $4.3 million compared to income from continuing operations, before nonrecurring items in the fourth quarter of 1999.

Income from continuing operations, before nonrecurring items, for the full year was $15.9 million, compared to full year 1999 income from continuing operations, before nonrecurring items, of $18.2 million.

Net sales from continuing operations for the fourth quarter of 2000 were $194.3 million, up 62% over 1999 fourth quarter net sales from continuing operations of $120.0 million, primarily due to the acquisitions during the year of Boxmore International, First Carton and Green Printing. On a pro forma basis, net sales from continuing operations for the fourth quarter of 2000 were $197.9 million, down 11% from pro forma net sales of $222.0 million for the fourth quarter of 1999.

Full year net sales from continuing operations in 2000 were $654.7 million, 65% above 1999 net sales from continuing operations of $396.7 million, reflecting the acquisitions completed in 1999 and 2000. On a pro forma basis, net sales for the full year 2000 were $801.3 million, down one percent from pro forma net sales of $809.2 million for full year 1999.