Caraustar Announces Retirement of CEO

Brown to retire; succession plan announced.

Caraustar Industries Inc., Atlanta, has announced that Thomas V. Brown, president and chief executive officer, will be retiring from the company, effective with his 65th birthday June 1, 2005. Michael J. Keough, senior vice president and chief operating officer, will be appointed president and chief executive officer effective January 1, 2005.

Brown joined Caraustar as president in January 1991, and in October 1991 he was also appointed chief executive officer. In October 1992 Brown spearheaded the company's successful initial public offering and listing on NASDAQ. From sales of approximately $275 million in 1991, Caraustar has grown to revenues of almost $1 billion, with 107 facilities in 30 states as well as Mexico, Canada and the United Kingdom. Under Brown's leadership, Caraustar has grown, primarily through strategic acquisitions, to become a major recycled paperboard manufacturing and packaging company, serving all recycled boxboard packaging markets, according to a release issued by the company.

Keough, who will replace Brown as president and chief executive officer, joined Caraustar in March 2002 as senior vice president and chief operating officer, following a 26-year career with other major paper companies. Since coming to Caraustar, Keough has been deeply involved in the development and implementation of various key initiatives the company has undertaken to improve its operating efficiencies and financial performance for meeting today's market challenges, according to the company.

James E. Rogers, chairman of Caraustar's board of directors, commented, "As Caraustar's president and CEO, Tom Brown has done an outstanding job in managing the company's strategic growth to position it for long-term industry leadership in recycled paperboard packaging. I am confident that under Mike's leadership, Caraustar will continue on the path of improved overall performance and success."

Brown and Keough will work together over the next several months to effect a seamless transition of key responsibilities.

Caraustar, a recycled packaging company, bills itself as one of the largest and most cost-effective manufacturers and converters of recycled paperboard and recycled packaging products in the United States. The company has developed its leadership position in the industry through diversification and integration from raw materials to finished products. Caraustar serves the four principal recycled paperboard product markets: tubes, cores and cans; folding cartons and custom packaging; gypsum wallboard facing paper; and miscellaneous "other specialty" and converted products.