<b>Caraustar Sees Sharp Drop in Quarter</b>

Caraustar Industries announced that revenues for the first quarter were $220.1 million, a decrease of 11.5 percent from revenues of $248.6 million for the first quarter of 2000. The net loss for the first quarter was $10.8 million, compared to first quarter 2000 net income of $2.1 million.

The net loss for the first quarter of 2001 includes pre-tax restructuring charges of $4.4 million related to the permanent shutdown of its Chicago paperboard mill and $2.6 million related to the consolidation of the operations of the Salt Lake City, Utah carton plant into the Denver, Col., carton plant.

Net loss before extraordinary loss and excluding restructuring costs for the first quarter of 2001 was $3.7 million, compared to net income excluding restructuring costs for the same period last year of $6.5 million.

Total unit volume in the mills and converting businesses decreased 52,000 tons to 250,000 tons in the first quarter of 2001 from 302,000 tons in the first quarter of 2000. Compared to the first quarter of 2000, gypsum facing paper volume declined 20,000 tons, folding carton grades declined 19,000 tons, other specialty grades declined 9,000 tons, and tube, core and can volume decreased 4,000 tons.

Paperboard mill volume decreased 19 percent to 218,000 tons and converted products volume decreased 11 percent to 117,000 tons compared to the first quarter of 2000. Tube, core and can converted product volume declined by 4 percent to 53,000 tons in the first quarter, compared to the first quarter of 2000. Converted carton volume declined by 15 percent to 36,000 tons, excluding acquisitions, and increased by 2 percent to 43,000 tons, including acquisitions, in the first quarter of 2001 compared to the first quarter of 2000. Converted volume of other specialty products declined by 40 percent to 20,000 tons in the first quarter of 2001 compared to the prior year period.

Gross paperboard margins at the company's paperboard mills decreased $4 per ton in the first quarter of 2001 compared to the fourth quarter of 2000, as paperboard selling prices decreased $10 per ton and recovered fiber costs declined $6 per ton. Energy costs at the company's paperboard mills increased $4 per ton in the first quarter of 2001, compared to the fourth quarter of 2000. Paperboard margins on tubes and cores decreased by $6 per ton as selling prices decreased by $7 per ton and paperboard costs decreased by $1 per ton in the first quarter of 2001 compared to the fourth quarter of 2000.