Atlantis Plastics: 1998 2nd Quarter Earnings FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION: A. Richard Hurwitz Vice President, Corporate Communications (305) 858-2200 ATLANTIS PLASTICS ANNOUNCES SECOND QUARTER OPERATING RESULTS ATLANTA, GA - (July 30, 1998) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the second quarter ended June 30, 1998. Net income in the 1998 second quarter was $1.6 million, or $0.20 per share, compared to a net loss of $0.3 million, or $0.04 per share in the same period of 1997. Net sales in the second quarter of 1998 were $64.1 million, compared to $65.5 million in the second quarter of 1997. Net income in the first half of the 1998 fiscal year was $3.3 million, or $0.42 per share, compared to a net loss of $1.0 million, or $0.14 per share in the same period of 1997. Net sales in the first six months of 1998 were $128.5 million, compared to $129.9 million in the same period of 1997. The operating results for the first six months of 1997 included non-recurring pretax charges of approximately $1.0 million, or $0.08 per share relating to restructuring expense in the stretch film unit and the closing of the Company's Nashville injection molding facility. The Company's gross margin in the second quarter of 1998 was 17%, compared to 14% in the same period of 1997, and operating margin in the second quarter of 1998 was 8%, compared to 4% in the same period of 1997. The improvement in profitability was due, in large part, to increased productivity, cost reduction measures, and a more favorable pricing environment in the Company's plastic films segment. Gross margins in this segment increased from 13% of net sales in the second quarter of 1997 to 20% of net sales in the same period of 1998. The Company continues to experience difficulty in its molded products segment primarily due to a reduction in sales volume in one of its injection molding plants. In June 1998, employment levels in this plant were reduced, and efforts were enhanced to secure additional business for this facility. The Company's selling, general and administrative expense declined slightly to $6.4 million in the second quarter of 1998, compared to the same period in 1997. Interest expense also declined. It was $2.7 million in the just-completed quarter, compared to $2.9 million in the second quarter of 1997. Net debt (total debt less cash) at June 30, 1998 was $90.2 million, compared to $96.8 million at December 31, 1997 and $101.5 million at June 30, 1997. In November 1996, the Board of Directors authorized the repurchase of up to one million shares of Class A common stock, or 14% of the 7.1 million Class A and Class B common shares then outstanding. In the second quarter of 1998, the Company repurchased 222,200 shares, bringing the cumulative repurchases under this program to 542,544 shares, as well as options for 55,125 shares. Anthony F. Bova, President and Chief Executive Officer, said, "We are very pleased with our 1998 second quarter operating performance which marks the fourth consecutive quarter of improved relative earnings. We remain confident that the current earnings trend will provide favorable operating comparisons for the balance of 1998." 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, and technological changes which could alter the demand for product or adversely impact the competitive cost of production. 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 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. ### ATLANTIS PLASTICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited - in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 1998 1997 1998 1997 Net sales $64,080 $65,530 $128,507 $129,853 Cost of sales 52,927 56,428 106,065 111,564 Gross profit 11,153 9,102 22,442 18,289 Selling, general and administrative expenses 6,377 6,456 12,350 12,886 Impairment of long-lived assets and restructuring charges - - - 960 Operating income 4,776 2,646 10,092 4,443 Net interest expense (2,696) (2,879) (5,444) (5,716) Income (loss) before income taxes 2,080 (233) 4,648 (1,273) Income tax (provision) benefit (504) (79) (1,385) 248 Net income (loss)$1,576 $ (312) $ 3,263 $(1,025) Net income (loss) per Common Share: Basic $0.21 ($0.04) $0.44 ($0.14) Diluted $0.20 ($0.04) $0.42 (0.14) Weighted-average number of shares used in computing income (loss) per share (in thousands): Basic 7,479 7,062 7,413 7,132 Diluted 7,833 7,062 7,736 7,132 ATLANTIS PLASTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands) June 30, December 31, 1998 1997 ASSETS Cash and equivalents $12,961 $ 8,346 Accounts receivable,net 25,046 25,444 Inventories 16,620 18,517 Other current assets 7,347 7,448 Current asset 61,974 59,755 Property and equipment,net 59,499 60,065 Goodwill, net of accumulated amortization 48,175 48,961 Other assets 1,878 2,108 $171,526 $170,889 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued expenses $ 24,075 $24,146 Current portion of long-term debt 3,245 3,254 Currentliabilities 27,320 27,400 Long-term debt, less current portion 99,889 101,862 Deferred income taxes 8,507 8,287 Other liabilities 628 791 Totalliabilities 136,344 138,340 Commitments and contingencies - - Shareholders' equity: Class A Common Stock, $.10 par value, 20,000,000 shares authorized, 4,525,054 and 4,205,028 shares issued and outstanding in 1998 and 1997 453 436 Class B Common Stock, $.10 par value, 7,000,000 shares authorized, 2,918,043 and 2,861,979 shares issued and outstanding in 1998 and 1997 292 274 Additional paid-in capital 8,910 7,117 Notes receivable from sale of Common Stock (923) - Retained earnings 26,450 24,722 Total shareholders'equity 35,182 32,549 $171,526 $170,889 ATLANTIS INC., AND SUBSIDIARIES CONSOLIDATED SELECTED INCOME STATEMENT DATA ($ in millions) 1998 1997 Q2 Q1 Q4 Q3 Q2 Q1 NET SALES Plastic Films $44.4 $44.9 $45.6 $47.6 $48.1 $45.7 Molded Plastics 19.7 19.5 16.8 16.3 17.4 18.6 TOTAL $64.1 $64.4 $62.3 $63.9 $65.5 $64.3 Percentage of Net Sales GROSS PROFIT Plastic Films 20% 19% 18% 17% 13% 13% Molded Plastics 12% 15% 17% 13% 17% 18% TOTAL 17% 18% 17% 16% 14% 14% OPERATING INCOME Plastic Films 9% 9% 7% 8% 3% 3%(a) Molded Plastics 4% 6% 5%(a) 2%(a) 6% 8%(a) TOTAL 8% 8% 7%(a) 6%(a) 4% 4%(a) NET INTEREST EXPENSE $2.7 $2.7 $2.8 $2.9 $2.9 $2.8 Ends.