CPI Plastics Group Limited



    MISSISSAUGA, ON, Jan. 7 /CNW/ - CPI Plastics Group Limited announced
today that it has been unable to withstand the ravages of the current economic
crisis and has been unable to gain the support of its secured lender to
restructure CPI's financial affairs. After the close of markets today, the
lender demanded immediate repayment of all of CPI's credit facilities and
notified CPI that the lender intends to enforce its security over all of CPI's
assets if repayment cannot be made. CPI understands that the lender will move
immediately for the court appointment of an interim receiver over all of CPI's
assets. CPI does not intend to object to the appointment.
    CPI also announced today that Peter F. Clark resigned this evening as
Chief Executive Officer and as a director of CPI after many years of service
and commitment to CPI's employees, customers and suppliers. All of CPI's other
directors have also resigned or indicated their intention to resign.

    CPI Plastics Group Ltd. is a Canadian-based plastics processor and a
recognized international leader in thermoplastics profile design, engineering,
processing and value added manufacturing. CPI is comprised of three key
divisions. CPI's Outdoor Living Products Group manufactures and markets Eon(R)
Decking and Fencing Systems, as well as high value-added cladding and
accessory components to the outdoor hot tub industry. CPI's Film Products
Group manufactures and markets the Rack Sack(R) household refuse management
system and a wide range of branded and private label household and industrial
refuse bags. CPI's Custom Products Group supplies leading OEM manufacturers
with custom profile solutions to enhance quality, cost effectiveness and
process ability. Based in Mississauga, Ontario and Pleasant Prairie,
Wisconsin, CPI's dedicated team of over 600 employees currently manufactures
out of six plants occupying 530,000 square feet of manufacturing space and
housing over 135 extruders. To learn more about CPI, visit our website at
www.cpiplastics.com.

    %SEDAR: 00011090E




For further information:

For further information: Mr. Paul Huston, Vice President, Legal Affairs
and General Counsel, (905) 795-5505

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CPI PLASTICS GROUP LIMITED

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