Facility Consolidation Initiative by Packaging Dynamics

Packaging Dynamics Corporation (the "Company" or "Packaging Dynamics") today announced a facility consolidation initiative within its BagcraftPapercon food packaging business.

This consolidation initiative will result in the closure of the smaller of the Company's two Chicago facilities: a plant located at 5401 South Western Boulevard which employs approximately 50 people. Operations at the Western Boulevard facility will continue into the third quarter of 2011 when production will be transferred to other locations including the Company's primary Chicago facility and headquarters located at 3900 West 43rd Street which employs approximately 300 people.

Roger Prevot, Chief Executive Officer, said, "This facility consolidation initiative reflects our commitment to serve all of our customers from modern, industry leading manufacturing facilities. We have made and are continuing to make investments to expand and upgrade production capabilities across BagcraftPapercon's national plant network to ensure a seamless transition. In addition, this action affirms our commitment to continue providing our customers throughout the United States with our broad industry leading product line."