ATLANTIS PLASTICS ANNOUNCES FIRST HALF RESULTS

ATLANTA, GA  - (August 9, 2001) Atlantis Plastics, Inc. (ASE:AGH) today announced its operating results for the second quarter and the six months ended June 30, 2001. Net sales for the second quarter of 2001 were $62.5 million, compared with $65.3 million for the second quarter of 2000. Net income for the second quarter of 2001 was $0.3 million, or $0.04 per diluted share, compared with $0.4 million, or $0.05 per diluted share in the second quarter of 2000. In the second quarter of 2001, the Company benefited from an extraordinary gain of $423,000, net of income taxes, or $0.05 per diluted share associated with the buyback of $6.1 million of the Company's Senior Notes. 

Net sales for the first half of 2001 were $127.2 million, compared with $129.7 million for the first half of 2000. Net income for the first half of 2001 was $0.7 million, or $0.10 per diluted share, compared with $1.4 million, or $0.18 per diluted share for the six months ended June 30, 2000. 

Sales volume for the quarter ended June 30, 2001 in Atlantis' molded products segment increased 1% over the second quarter of 2000. For the six months ended June 30, 2001, the molded products segment's net sales declined 6% from the comparable period in 2000, primarily due to continued softness in the home building and durable goods sectors. In the Company's plastic films segment, sales volume for the quarter (measured in pounds) declined 6% from the same period in 2000. Plastic films sales volume for the six months ended June 30, 2001 (measured in pounds) increased 2% over the first half of 2000.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter ended June 30, 2001 were $5.6 million, compared with $6.0 million for the second quarter of 2000. Atlantis' gross margin and operating margin for the second quarter of 2001 were 15%, and 4%, respectively, compared with 15% and 5%, respectively, for 2000. For the six months ended June 30, 2001, EBITDA, gross margin and operating margin were $12.0 million, 16%, and 5%, respectively, compared with $13.1 million, 16%, and 6%, respectively, for the six months ended June 30, 2000. Net debt (total debt less cash) at June 30, 2001 was $93.3 million, compared with $96.1 million at December 31, 2000.

Anthony F. Bova, President and Chief Executive Officer, said, "Due to increased demand in our stretch film business in the first quarter from several large customers, the planned relocation of two extruders to our new California facility were delayed until the second quarter of 2001. The relocation and the related start up costs impacted operating results in the second quarter by $0.08 per share. Although these costs were significant, the relocation was important to growing our market share in the film business, a goal to which we remain dedicated. With all lines scheduled to be at full capacity by September 2001, we believe we are well positioned to see further growth in the second half of 2001. 

The continued economic slowdown and weakness in the automotive, consumer durables, and home building sectors continued to adversely impact our molded products business in the first half of 2001. We have been successful in our plan to reduce both fixed and variable costs throughout the business and we believe our molded products business is well positioned to improve operating results as the economy recovers."

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 daylight time: 1-888-855-5428.

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


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