ATLANTIS PLASTICS ANNOUNCES FIRST HALF RESULTS

ATLANTA, GA - (July 26, 2000) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the second quarter and the six months ended June 30, 2000. Net sales for the second quarter of 2000 were $65.3 million compared with $65.1 million for the second quarter of 1999. Net income for the second quarter of 2000 was $0.4 million, or $0.05 per diluted share compared with $2.6 million or $0.33 per diluted share in the second quarter of 1999.

Net sales for the first half of 2000 were $129.7 million compared with $124.0 million for the comparable 1999 period. Net income for the first half of 2000 was $1.4 million, or $0.18 per diluted share compared with $4.7 million, or $0.61 per diluted share for the six months ended June 30, 1999.

Sales volume in Atlantis' molded products segment declined 6% from the second quarter of 1999 due primarily to weakness in the appliance and home building sectors. Through June 30, 2000, the molded products segment's net sales increased 4% over the first half of 1999 due to strength in these sectors in the first quarter of 2000. For the second quarter, sales volume (measured in pounds) in the Company's plastic films segment declined 4% from prior year levels due primarily to inventory corrections in the custom films business. Plastic films volume for six months ended June 30, 2000 reflected a decline of 5% from 1999 levels.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter ended June 30, 2000 were $6.0 million compared with $9.2 million for the same period in the prior year. Atlantis' gross margin for the second quarter of 2000 was 15% compared with 20% for the comparable 1999 period, while operating margin was 5% compared with 10% for the second quarter of 1999. For the six months ended June 30, 2000, EBITDA, gross margin and operating margin were $13.1 million, 16%, and 6% respectively, compared with $17.6 million, 21% and 10% respectively for the six months ended June 30, 1999.

Selling, general and administrative ("SG&A") expense was $6.2 million for the quarter ended June 30, 2000 compared with $6.5 million for the prior year comparable quarter. Through June 30, 2000 SG&A expense was $12.8 million compared with $13.0 million for the quarter ended June 30, 1999. For both periods, the decline reflects reduced accruals for incentive compensation programs.

Net interest expense for the quarter ended June 30, 2000 was $2.5 million compared with $2.3 million for the quarter ended June 30, 1999. For the six months ended June 30, 2000, net interest expense totaled $5.1 million compared with $4.6 million for the six months ended June 30, 1999. Net debt (total debt less cash) stood at $94.2 million as of June 30, 2000 compared with $89.4 million as of December 31, 1999.

Anthony F. Bova, President and Chief Executive Officer, said, "Our plastic films business continues to be impacted by extraordinarily high resin prices resulting from recent increases in energy costs, as well as an apparent inventory correction in the custom films business. The recent rescinding of a previously implemented resin price increase and the deferral of another announced increase indicate that resin prices may have peaked and may decline later this year as additional resin capacity comes on stream. Volume in the molded segment was off in the second quarter; however, we anticipate shipping our new proprietary cedar shake siding product starting in the third quarter."

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.

Forward-looking statements may include, but are not limited to, projections of revenues, income or losses, capital expenditures, raw material prices, plans for future operations, financing needs, compliance with financial covenants in loan agreements, plans for liquidation or sale of assets or businesses, plans relating to products or services of the Company, assessments of materiality, predictions of future events, the ability to obtain additional financing, the Company's ability to meet obligations as they become due, the impact of pending and possible litigation, as well as assumptions relating to the foregoing. In addition, when used in this discussion, the words "anticipates," "believes," "estimates," "expects," "intends," "plans" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, including, but not limited to, the impact of leverage, dependence on major customers, fluctuating demand for the Company's products, risks in product and technology development, fluctuating resin prices, competition, litigation, labor disputes, capital requirements, and other risk factors detailed in the Company's Securities and Exchange Commission filings, some of which cannot be predicted or quantified based on current expectations.

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