MOD-PAC CORP. Rationalizes Product Lines

* Focus on growing custom folding carton sales
* Continue to develop personalized print and stock packaging market share

BUFFALO, N.Y.--(Business Wire)--
MOD-PAC CORP. (NASDAQ: MPAC), a manufacturer of custom paper board packaging and
provider of specialty personalized print products, announced today that the
Company is rationalizing its product lines in order to capitalize on its growing
position in custom folding cartons . In addition, the Company will continue to
provide stock packaging and personalized print products, its other traditional
product lines, but will exit the commercial print market which it has been more
broadly involved in since 2005. As a result of the refined strategic focus,
MOD-PAC should realize approximately $0.9 million to $1.2 million annually in
improved operating results beginning in part in the third quarter of this year.
It will also recognize a $2.0 million to $3.0 million charge associated with the
rationalization process in the second quarter ending July 4, 2009. The majority
of the charge will be non-cash related.

Mr. Daniel G. Keane, President and CEO of MOD-PAC, noted, "We have been making
measurable strides in capturing new customers for our custom folding carton
product line while also expanding the level of business with existing customers.
Our ability to provide high quality, short-run, on demand custom folding cartons
reduces our customers costs through inventory reduction and obsolescence
avoidance. This has been a driving factor in our ability to grow custom folding
carton sales even in a challenged economy. Strategically, we believe that
focusing our resources on our traditional product lines will improve our ability
to expand our market share while also creating greater operational efficiencies
and reduced costs."

Mr. Keane added, "The commercial print services industry is being especially
hard hit during this recession and is expected to face several years of weakness
before it recovers. As we evaluated various options, it was clear that our
efforts in this market were not achieving the results we expected. Although it
is particularly difficult to lose valued employees, strategically it is
important for the Company to refine its focus."

The rationalization will involve the elimination of approximately 23 positions
in the area of specialty print and direct mail services and the reassignment of
approximately 25 positions to primarily the custom folding carton line. The
Company plans to fulfill its existing obligations to its specialty print and
direct mail customers and to transition those that have recurring requirements
to other print service providers.

ABOUT MOD-PAC CORP.

MOD-PAC CORP. is a high value-added, on demand print services firm providing
products and services in two product categories: folding cartons and
personalized print. Within folding cartons, MOD-PAC provides CUSTOM FOLDING
CARTONS for branded and private label consumer products in the food and food
service, healthcare, medical and automotive industries. The Company also offers
a line of STOCK PACKAGING primarily to the retail confectionary industry.
MOD-PAC`s PERSONALIZED PRINT product line is a comprehensive offering for
consumer and corporate social occasions.

MOD-PAC`s strategy for growth is to leverage its capabilities to innovate and
aggressively integrate technology into its production operations providing
cost-effective solutions for its customers. Through its large, centralized
facility, the Company has captured significant economies of scale by channeling
large numbers of small-to-medium-sized orders through its operations due to its
rapid order change out skills. Applying its lean manufacturing processes coupled
with state-of-the-art printing technologies, MOD-PAC is able to address
short-run, highly variable content needs of its customers with quick turn around
times relative to industry standards. .

Additional information on MOD-PAC can be found at its website:
http://www.modpac.com.

Safe Harbor Statement:This press release contains forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended.One can identify these forward-looking statements by the use of the
words such as "expect," "anticipate," "plan," "may," "will," "estimate" or other
similar expressions.Because such statements apply to future events, they are
subject to risks and uncertainties that could cause the actual results to differ
materially.Important factors, which could cause actual results to differ
materially, include market events, competitive pressures, changes in technology,
customers preferences and choices, success at entering new markets, the
execution of its strategy, marketing and sales plans, the rate of growth of
internet related sales, the effectiveness of agreements with print distributors
and other factors which are described in MOD-PAC`s annual report on Form 10K on
file with the Securities and Exchange Commission.The Company assumes no
obligation to update forward-looking information in this press release whether
to reflect changed assumptions, the occurrence of unanticipated events or
changes in future operating results, financial conditions or prospects, or
otherwise.

Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
Dpawlowski@keiadvisors.com

Copyright Business Wire 2009