<B>Caraustar Closes Chicago Board Mill</B>

Caraustar Industries will permanently close Chicago Paperboard, a recycled paperboard mill located in Chicago, effective immediately.

The closing of Chicago Paperboard results from the lack of market demand for uncoated recycled paperboard. The mill was profitable through 1998, but declining sales resulted in operating losses of $2.6 million in 1999 and $1.5 million in 2000. The mill has been idle since early November due to soft market conditions.

Caraustar will incur a pre-tax charge of approximately $4.3 million in the first quarter 2001, to reflect the costs of permanently shutting down the mill and providing transition assistance to affected employees.

"We regret that market conditions make this move necessary, but we can serve our customers more cost effectively from our other facilities," said Thomas Brown, president and CEO. "We hope to recover the costs associated with the closing through the sale of the mill property, which includes 17 acres fronting on the Chicago River."