Atlantis Plastics: Earnings News Release FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION: A. Richard Hurwitz Vice President, Corporate Communications (305) 858-2200 ATLANTIS PLASTICS ANNOUNCES RECORD 1998 FIRST QUARTER OPERATING RESULTS ATLANTA, GA - (April 30, 1998) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the first quarter ended March 31, 1998. Net sales were $64.4 million, approximately the same as the first quarter of 1997. Net income in the 1998 first quarter was $1.7 million, or $0.22 per share, compared to a net loss of $0.7 million, or $0.10 per share in the 1997 first quarter. Four of the Company's five businesses posted better operating results in the 1998 first quarter. Net sales in the molded products segment in the first quarter of 1998 increased 5%, while sales in the plastic films segment (measured in pounds) were approximately the same as the 1997 first quarter. However, the plastic films segment reported a strong improvement in gross margin, despite intense competitive selling pressures, increasing from 13% of sales in the first quarter of 1997, to 19% of sales in the first quarter of 1998. The Company's gross margin in the first quarter of 1998 was 18%, compared to 14% in the first quarter of 1997. Atlantis' operating income in the first quarter of 1998 was 8% of sales, compared to 3% of sales in the first quarter of 1997. Anthony F. Bova, President and Chief Executive Officer, said, "We are very pleased with our record 1998 first quarter operating performance, which marks the third consecutive quarter of improved relative earnings. We continue to receive excellent market acceptance of our new machine wrap stretch film products and, in custom film, we continue to increase sales in several targeted value-added segments. "Our new $6.2 million Whirlpool contract is beginning to impact 1998 revenues, and we expect to show improved operating comparisons in injection molding for the balance of the year. In our profile extrusion unit, operating income remains strong. Recently, two new proprietary extruded products were introduced for use in the building supply trade. We remain confident that the current earnings trend will provide favorable operating comparisons for the balance of 1998." Selling, general and administrative expenses declined 7%, from $6.4 million in the first quarter of 1997 to $6.0 million in the same period of 1998, primarily due to the Company's ongoing cost reduction programs. Interest expense decreased slightly from $2.8 million in the first quarter of 1997 to $2.7 million in the first quarter of 1998, while net debt (total debt less cash) at March 31, 1998 was $93.3 million, compared to $101.5 million at March 31, 1997. The 1997 first quarter results included non-recurring pretax charges of approximately $1.0 million, relating to restructuring expense in the stretch film unit and the closing of the Company's Nashville injection molding facility. Net loss, prior to non-recurring items, was $0.1 million or $0.01 per share. This news release contains certain forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from these statements. These risks include, but are not limited to, raw material costs and the ability to pass price increases to customers in a timely fashion, industry overcapacity, product acceptance, technological changes which could alter the demand for product or adversely impact the competitive cost of production, etc. All forward-looking statements should be considered in light of these risks and uncertainties. Atlantis Plastics, Inc. is a leading U.S. manufacturer of polyethylene stretch and custom films and molded plastic products. Stretch films are used principally to wrap pallets of materials for shipping or storage, and custom films, which are made-to-order specialty film products, are used in the industrial and packaging markets. Atlantis' molded plastic products are used primarily in the appliance, automotive, agricultural, building supply, and recreational vehicle industries. Additional information on Atlantis Plastics, Inc. is available on the Internet World Wide Web at this address: http://www.cfonews.com/agh; or interested parties may dial direct by modem to (718) 279-3590; or may send E-mail to cfo@panix.com, with the subject agh. ### ATLANTIS PLASTICS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited - In thousands) March 31, December 31, 1998 1997 ASSETS Cash and equivalents................................. $11,153 $ 8,346 Accounts receivable,net..................... 26,116 25,444 Inventories................................. 18,545 18,517 Other current assets........................ 6,290 7,448 Current assets.......................... 62,104 59,755 Property and equipment,net.................. 59,887 60,065 Goodwill, net of accumulated amortization................................ 48,568 48,961 Other assets................................ 1,994 2,108 Total assets............................ $172,553 $170,889 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses........ $24,055 $24,146 Current portion of long-term debt............ 3,256 3,254 Current liabilities...................... 27,311 27,400 Long-term debt, less current portion......... 101,199 101,862 Deferred income taxes........................ 8,366 8,287 Other liabilities............................ 710,791 Total liabilities........................ 137,586 138,340 Commitments and contingencies - - Shareholders' equity: Class A common stock, $.10 par value, 20,000,000 shares authorized, 4,622,937 and 4,358,516 shares issued and outstanding in 1998 and 1997............................. 462 436 Class B common stock, $.10 par value, 7,000,000 shares authorized, 2,945,605 and 2,742,280 shares issued and outstanding in 1998 and 1997 295 274 Additional paid-in capital................. 8,791 7,117 Notes receivable from sale of common stock. (990) - Retained earnings............................ 26,409 24,722 Total shareholders'equity................ 34,967 32,549 $172,553 $170,889 ATLANTIS PLASTICS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited - In thousands, except per share data) Three Months Ended March 31, 1998 1997 Net sales............................... $64,427 $64,323 Cost of sales........................... 53,138 55,136 Gross profit......... 11,289 9,187 Selling, general and administrative expenses 5,973 6,430 Impairment of long-lived assets and restructuring charges................... - 960 Operating income...... 5,316 1,797 Net interest expense..................... (2,748) (2,837) Income (loss) before income taxes......... 2,568 (1,040) Income tax (provision)benefit............ (881) 327 Net Income(loss)...... $1,687 ($713) Net income (Loss) per Common Share Basic $0.23 ($0.10) Diluted $0.22 ($0.10) Weighted-average number of shares used in computing income (loss) per share (in thousands): Basic 7,347 7,203 Diluted 7,617 7,203 ATLANTIS PLASTICS, INC. SELECTED INCOME STATEMENT DATA ($ in millions) 1998 1997 Q1 Q4 Q3 Q2 Q1 NET SALES Plastic Films $44.9 $45.6 $47.6 $48.1 $45.7 Molded Plastics 19.5 16.8 16.3 17.4 18.6 TOTAL $64.4 $62.3 $63.9 $65.5 $64.3 Percentage of Net Sales GROSS PROFIT Plastic Films 19% 18% 17% 13% 13% Molded Plastics 15% 17% 13% 17% 18% TOTAL 18% 17% 16% 14% 14% OPERATING INCOME Plastic Films 9% 7% 8% 3% 3%(a) Molded Plastics 6% 5%(a) 2%(a) 6% 8%(a) TOTAL 8% 7%(a) 6%(a) 4% 4%(a) NET INTEREST EXPENSE $2.7 $2.8 $2.9 $2.9 $2.8 (a)Amounts exclude the effects of the 1997 impairment of long-lived assets and restructuring charges totaling $815,000 and more fully described in Note 4 of Notes to the Consolidated Financial Statements. Ends.