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Astronics to Spin-Off Printing-Packaging Unit to Shareholders

Friday, September 27, 2002

Press release from the issuing company

BUFFALO, N.Y., Sept. 26 -- Astronics Corporation today announced that it has taken the initial steps to spin-off its 100% equity ownership in MOD-PAC CORP. The results of the transaction will be two strong publicly-traded companies, each focused on its own customers, products and markets. The transaction, expected to be completed near year-end, will be structured as a tax-free distribution of MOD-PAC CORP stock to Astronics' shareholders. The spin-off is subject to various approvals and procedures including a favorable tax ruling from the Internal Revenue Service (IRS), registering the shares of MOD-PAC CORP with the Securities and Exchange Commission and listing MOD-PAC's shares with the NASDAQ. A ruling request has been filed with the IRS. Astronics will continue to operate the aerospace lighting and electronics business. MOD-PAC manufactures folding cartons and is engaged in short run commercial printing. These two businesses have completely different markets, operating characteristics and customer requirements. The separation will allow management to focus on their specific industries and to deploy tailored strategies in order to build value for customers, employees and shareholders. For example, the spin-off will extend Astronics' ability to take advantage of opportunities reserved by the US government for small defense contractors at a critical juncture in the aerospace-defense industry. "This is a major step in strategically positioning our Aerospace-Electronics business and our Printing-Packaging business for the next stage of their growth. This step is being taken from a position of strength as each business has performed at highly profitable levels and will be sufficiently capitalized to build on the momentum already achieved," said Kevin T. Keane, Astronics' Chairman and CEO. For further information, access the company's web site at http://www.astronics.com.




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