Chesapeake Files Suits Against Shorewood

Business Wire, Dec 3, 1999

RICHMOND, Va.--(BUSINESS WIRE)--Dec. 3, 1999--

Chesapeake Corporation (NYSE: CSK) today announced that it has filed suit in the Court of Chancery for the State of Delaware against Shorewood Packaging Corporation (NYSE: SWD) and its directors in connection with Chesapeake's pending tender offer to purchase Shorewood's shares.

Chesapeake is seeking, among other things, an order that Shorewood's directors have breached their fiduciary duties under Delaware law. Chesapeake is also seeking injunctive relief prohibiting Shorewood and its directors from taking certain actions to thwart or interfere with the tender offer and an anticipated solicitation of written consents from Shorewood's stockholders.

Chesapeake also today filed suit in the Federal District Court for the District of Delaware against Shorewood seeking, among other things, a declaratory judgment that Chesapeake's tender offer materials comply with applicable federal securities laws.

Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging and merchandising services. Chesapeake is the largest North American producer of temporary and permanent point-of-purchase displays, the North American leader for litho-laminated packaging, the leading European folding carton, leaflet and label supplier, and a local leader in specific U.S. markets for customized, corrugated packaging. Chesapeake has over 40 locations in North America, Europe and Asia. Chesapeake's net sales in 1998 were $950.4 million. Chesapeake's website is http://www.cskcorp.com .

This news release, including comments by Thomas H. Johnson, contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that may cause Chesapeake's actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: competitive products and pricing; production costs, particularly for raw materials such as corrugated box, folding carton and display materials; fluctuations in demand; government policies and regulations affecting the environment; interest rates; currency translation movements; Year 2000 compliance; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission.