ATLANTIS PLASTICS ANNOUNCES THIRD QUARTER  RESULTS

ATLANTA, GA  - (November 5, 2001) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the third quarter and the nine months ended September 30, 2001. Net sales for the third quarter of 2001 were $63.4 million, compared with $63.2 million for the third quarter of 2000. Net income for the third quarter of 2001 was $0.1 million, or $0.01 per diluted share, compared with a loss of $(0.7) million, or $(0.09) per diluted share in the third quarter of 2000.

Net sales for the first nine months of 2001 were $190.6 million, compared with $193.0 million for the first nine months of 2000. Net income for the first nine months of 2001 was $0.8 million, or $0.11 per diluted share, compared with $0.7 million, or $0.10 per diluted share for the nine months ended September 30, 2000. In the nine months ended September 30, 2001, the Company benefited from an extraordinary gain of $408,000, net of income taxes, or $0.05 per diluted share associated with the buyback of $13.2 million of the Company’s Senior Notes. 

Net Sales for the third quarter of 2001 in Atlantis’ molded products segment increased 10% over the third quarter of 2000. For the nine months ended September 30, 2001, the molded products segment’s net sales declined 1% from the comparable period in 2000, due to weakness in the home building and durable goods sectors that adversely impacted our business predominately in the first half of 2001. In the Company’s plastic films segment, sales volume for the quarter (measured in pounds) increased 6% from the same period in 2000. Plastic films sales volume for the nine months ended September 30, 2001 (measured in pounds) increased 3% over 2000 levels.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the quarter ended September 30, 2001 were $5.9 million, compared with $4.4 million for the third quarter of 2000. Atlantis’ gross margin and operating margin for the third quarter of 2001 were 16%, and 4%, respectively, compared with 13% and 3%, respectively, for 2000. For the nine months ended September 30, 2001, EBITDA, gross margin and operating margin were $17.9 million, 15%, and 5%, respectively, compared with $17.5 million, 15%, and 5%, respectively, for the nine months ended September 30, 2000. Net debt (total debt less cash) at September 30, 2001 was $92.7 million, compared with $96.1 million at December 31, 2000.

Anthony F. Bova, President and Chief Executive Officer, said, “We are pleased to report that our new stretch film facility in California is now fully operational, positioning the Company to better service the national stretch film market. Despite very challenging economic conditions, we grew 
our film volume in the quarter by 6% over the prior year and an increase of 3% for the nine months ended September 30, 2001. We believe we are well positioned to continue to increase our market share in both the fourth quarter and throughout 2002, while focusing on our goal of becoming the dominant national stretch film supplier.

The continued economic slowdown and weakness in the automotive, consumer durables, and home building sectors adversely impacted our molded products business, predominately in the first half of 2001, with sales and gross margin off 1% and 13%, respectively, for the nine months ended September 30, 2001. We have, however, been successful in our plan to reduce both fixed and variable costs throughout the business and we are beginning to see improvements in our molded products operating results. For the quarter ended September 30, 2001 we increased both our sales and gross margin in our molded products business by 10% and 12%, respectively, compared to the 2000 third quarter results. With the level of new business already committed to Atlantis from some of our major customers for 2002 and other new product opportunities, we believe that our molded products business is well positioned to show significant growth in both sales and operating income in 2002.”

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. 

This release contains forward-looking statements that relate to future events or performance. These statements reflect the Company's current expectations, and the Company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the Company's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, fluctuations in plastic resin prices, the Company's high debt level, the risks inherent with predicting revenue and earnings outcomes as well as other "Factors That May Affect Future Results" set forth in the Company's Form 10-K for 2000. 

Readers are cautioned not to place undue reliance on any forward-looking statements contained herein, which speak only as of the date hereof. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Atlantis will hold its quarterly conference call to discuss operating results today at 11:00 a.m. To participate in the conference call, please call the following number at 10:55 a.m. eastern standard time: 1-800-289-0487.

Additional information is available on the Internet at http://www.atlantisstock.com.