AEP Industries Inc. Announces Sale of Interest in Hitachi Chemical Filtec, Inc.

Announces Consolidation of Operations in Australia



Apr 26, 2001, 01:00 ET from AEP Industries Inc.

    SOUTH HACKENSACK, N.J., April 26 /PRNewswire/ -- AEP Industries Inc.
 (Nasdaq:   AEPI, the "Company") today reported that it entered into an agreement
 to sell its 50 percent interest in the Hitachi Chemical Filtec joint venture
 investment to its partner, Hitachi Chemical Company, Ltd., for approximately
 $10 million.
     This investment has a carrying value of approximately $16 million;
 accordingly, sale of this investment will result in a non-cash loss of
 approximately $6 million.
     "We acquired our interest in Hitachi Filtec in 1996 as part of our
 acquisition of Borden, Inc.'s global packaging business and are now selling it
 because this investment is no longer core to the Company's long-term
 strategy," stated Brendan Barba, Chairman and Chief Executive Officer of AEP.
 "The proceeds from this sale will be applied to the repayment of debt," Barba
 added.
     The Company also announced that it plans to shut down its Melbourne,
 Australia operations and consolidate those activities into the Company's new
 Sydney location.  AEP will take pre-tax restructuring charges, estimated to be
 $1.8 million over the next nine months, primarily associated with severances,
 relocation and lease close down costs of this facility.  Approximately
 $1.3 million of this restructuring charge is expected to be cash and the
 remaining $500,000 will be non-cash charges.
     "This action is another of the steps we are taking to improve the
 efficiency of our foreign operations," Mr. Barba concluded.
 
     AEP Industries Inc. manufactures, markets, and distributes an extensive
 range of plastic packaging products for the food/beverage, industrial and
 agricultural markets.  The Company now has operations in 11 countries
 throughout North America, Europe and Asia/Pacific.
 
     Except for historical information contained herein, statements in the
 release are forward-looking statements that are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties,
 which may cause the Company's actual results in future periods to differ
 materially from forecasted results.  Those risks include, but are not limited
 to, risks associated with pricing, volume and conditions of markets.  Those
 and other risks are described in the Company's filings with the Securities and
 Exchange Commission (SEC) over the last 12 months, copies of which are
 available from the SEC or may be obtained from the Company.
 
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SOURCE AEP Industries Inc.
    SOUTH HACKENSACK, N.J., April 26 /PRNewswire/ -- AEP Industries Inc.
 (Nasdaq:   AEPI, the "Company") today reported that it entered into an agreement
 to sell its 50 percent interest in the Hitachi Chemical Filtec joint venture
 investment to its partner, Hitachi Chemical Company, Ltd., for approximately
 $10 million.
     This investment has a carrying value of approximately $16 million;
 accordingly, sale of this investment will result in a non-cash loss of
 approximately $6 million.
     "We acquired our interest in Hitachi Filtec in 1996 as part of our
 acquisition of Borden, Inc.'s global packaging business and are now selling it
 because this investment is no longer core to the Company's long-term
 strategy," stated Brendan Barba, Chairman and Chief Executive Officer of AEP.
 "The proceeds from this sale will be applied to the repayment of debt," Barba
 added.
     The Company also announced that it plans to shut down its Melbourne,
 Australia operations and consolidate those activities into the Company's new
 Sydney location.  AEP will take pre-tax restructuring charges, estimated to be
 $1.8 million over the next nine months, primarily associated with severances,
 relocation and lease close down costs of this facility.  Approximately
 $1.3 million of this restructuring charge is expected to be cash and the
 remaining $500,000 will be non-cash charges.
     "This action is another of the steps we are taking to improve the
 efficiency of our foreign operations," Mr. Barba concluded.
 
     AEP Industries Inc. manufactures, markets, and distributes an extensive
 range of plastic packaging products for the food/beverage, industrial and
 agricultural markets.  The Company now has operations in 11 countries
 throughout North America, Europe and Asia/Pacific.
 
     Except for historical information contained herein, statements in the
 release are forward-looking statements that are made pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties,
 which may cause the Company's actual results in future periods to differ
 materially from forecasted results.  Those risks include, but are not limited
 to, risks associated with pricing, volume and conditions of markets.  Those
 and other risks are described in the Company's filings with the Securities and
 Exchange Commission (SEC) over the last 12 months, copies of which are
 available from the SEC or may be obtained from the Company.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X89562254
 
 SOURCE  AEP Industries Inc.