By analyzing consumer markets and new product trends, Caraustar
developed several new packaging solutions for current and new customers.
These solutions included new material applications, structural designs,
graphics services and functional paperboard inks and coatings.
This consumer-driven approach to process and product development is aimed
at creating customer value and differentiating Caraustar in the marketplace.

Enhancing this strategy was the development of the Packaging Services
Operations division during 2002. This new division, with facilities that provide
design, prototyping, prepress, laser die tooling and engineering services,
supports the direct needs of customers and all of Caraustar's converting
operations, some of which had previously been provided by third-party suppliers.

Marketing the Total Company and Serving the Total Customer

Caraustar's focused and centralized marketing approach for its diversified
manufacturing operations promotes the capabilities of the entire company
and is designed to serve the complete needs of the customer.

Caraustar has proactively marketed the integrated capabilities of all four
operating business groups to its customers and is gaining greater recognition
as a full-service organization that offers a wide range of packaging solutions
and a broad array of services.

Because Caraustar's new product development process includes extensive
functional testing at its mills, the company is able to present to the customer
new products that are already tested and proven. In addition, Caraustar's design
capabilities provide graphic prototyping for new product development and
consumer market testing. Both factors shorten the cycle to market for customers'
new product introductions.

By continuing with a proactive approach to its customers' packaging challenges
and capitalizing on opportunities, Caraustar expects to bring more new and
improved products to the marketplace while strengthening relationships with its
customers as a result of the added service capabilities.

 2002
Gold Award Winners

The National Paperboard Packaging Competition, sponsored by the Paperboard Packaging Council (PPC), selects the best in paperboard packaging design and production each year. An independent panel of judges reviews hundreds of entries to honor the few that best exemplify merit and achievement in packaging.

This year, Caraustar received four Gold Awards for packaging created for Carnation (Nestle), Gerber, Hershey's and Pepperidge Farm. Caraustar also received 11 Excellence Awards for Accord Publishing, Aurora Foods, Bath & Body Works, Eveready, Gerber, Hershey's, Kong Co., Lamaur Inc., Nestle, Spectrum (United Industries) and Studio Montage.

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Caraustar Industries, Inc.