<B>Chesapeake Sees Slowdown</B>

Chesapeake Corp. announced net income for the third quarter of $2.3 million, compared to net income before nonrecurring items for the third quarter of 1999 of $14.1 million. The third quarter results included a non-recurring net gain of $51.7 million after tax on the sale of the company's building products business and approximately 278,000 acres of timberland, net of a revision of estimated costs associated with the disposal of the kraft products business segment. Including the non-recurring net gain, net income for the third quarter of 1999 was $65.8 million.

The decrease in operating results reflects lower sales and operating margins in the U.S. point-of-purchase display business, which was impacted by product mix and a general slowdown in promotional programs and new product launches by several major U.S. consumer products companies, the contribution of the company's tissue operations to a joint venture with Georgia-Pacific at the end of the third quarter of 1999, and the impact of unfavorable foreign exchange translation rates in Europe against the U.S. dollar.

Net sales for the third quarter were $273.3 million, down $76.9 million from net sales of $350.2 million in the third quarter of 1999. The sales decrease primarily reflects the elimination of sales from Chesapeake's former Tissue segment, lower U.S. point-of-purchase display sales and the impact of unfavorable foreign exchange translation rates in Europe against the U.S. dollar offset, in part, by increased sales due to the acquisitions of Boxmore International, Green Printing and Consumer Promotions International.

Net income before extraordinary item for the first three quarters of 2000 was $6.5 million, compared to net income before nonrecurring items of $31.0 million for the first three quarters of 1999. Net sales for the first three quarters of 2000 were $768.7 million compared to net sales of $916.8 million in the first three quarters of 1999.