CANAL 8-K Other Events

April 25, 2007

Chesapeake

Annual Meeting

2006 Financial Highlights

•

Net sales decreased 1% to $995.4 million

Operating income* of $44.9 million compared to $47.7 million in 2005

•

•

Reported net loss per share of $1.67

Excludes gains or losses on divestitures, impairment and restructuring charges, and loss on extinguishment of debt.

* 

2

Earnings Per Share

Reconciliation of

Reported to Adjusted EPS

3

* Excludes gains or losses on divestitures and impairment, restructuring costs and  loss on extinguishment of debt.

Operating Income*

($ in millions)

2005 vs. 2006

4

•

U.S. defined benefit plan benefits frozen; U.S.

qualified plan fully funded

•

U.K. plan closed to new entrants

•

Incremental total funding in 2004-2006 of $35 million

•

Total plan deficits reduced from $153 million

at YE 2005 to $96 million at YE 2006

•

Future improvements expected

Proactive Management of

Pension Obligations

5

$25-Million

Cost Savings Program

•

$16 million in annualized savings to date

•

Closed three plants:

–

Birmingham, England

–

Bedford, England

–

Ezy sur Eure, France

•

Sold French luxury packaging business

•

Sold plastics operation in Northern Ireland

6

Operational Excellence

7

Growth Initiatives

“As important as continuous cost savings are to our organization, I want to assure you that we understand that a vibrant organization needs growth as well to be successful.”

4^th Quarter Earnings Conference Call

8

Blue Chip

Pharma Customers

9

Braille Pharma Packs

10

Anti-Counterfeiting

Solutions

11

New China

Paperboard Plant 

•

Enables growth opportunities in Pharma

•

World-Class facility

•

Offers anti-counterfeiting solutions

12

Alcoholic Drinks Market

13

East Kilbride

Modernization

14

Lithoprint Relocation

•

State-of-the-art facility for alcoholic drinks labels

•

Enthusiastic customer response

15

Agrochemical Twinpack

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Hungarian Joint Venture

•

Will produce large specialty plastic containers for agrochemicals and specialty chemicals markets

•

Supporting major contract with Syngenta

•

Near Budapest with established JV partner

17

Cape Town

Harrismith

Mauritius

African Operations

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Cost Savings Program - $25 million

Organic Growth - Worldwide

pharmaceutical packaging demand

expected to grow 5% per year to 2009,

CSK position with majority of top 20 global pharmaceutical companies

Strategic Initiatives - Arlington Press,

South Africa, China, Hungarian JV

Increased

Cash Flow

& Profitability 

Proactive Management of

Pension Obligations 

#1 Focus -- Increase Cash

Flow and Profitability

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2007 Operating Earnings

“We are convinced we are making the right moves; however, an improvement in operating earnings, exclusive of costs associated with our global cost savings program, will be a challenge in 2007.”

4^th Quarter Earnings Conference Call

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Thank you for your continued support.

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xzzzzz

Non-GAAP Financial Measures

Operating income from continuing operations, in each case exclusive of losses associated with the extinguishments  of debt, restructuring expenses, asset impairments, gains or losses on divestitures, and goodwill impairment are non-GAAP financial measures.  The company’s management believes these non-GAAP measures provide investors, potential investors, securities analysts and others with useful information to evaluate the performance of the business, because they exclude gains and losses that management believes are not indicative of the ongoing operating results of the business.  In addition, these non-GAAP measures are used by management to evaluate the operating performance of the company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for income from continuing operations and earnings per share as determined in accordance with GAAP. 

Disclaimer

This presentation contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause Chesapeake's actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: the company's inability to realize the full extent of the expected savings or benefits from the cost savings program and to complete such activities in accordance with its planned timetable and within the cost range; competitive products and pricing; production costs, particularly for raw materials such as folding carton and plastics materials, and the ability of the company to pass through increases in raw material costs to its customers; fluctuations in demand; possible recessionary trends in U.S. and global economies; government policies and regulations affecting the environment; interest rates; fluctuations in foreign exchange rates; the ability of the company to remain in compliance with its debt covenants; and other risks that are detailed from time to time in reports filed by the company with the Securities and Exchange Commission.  This presentation speaks only as of the date of this presentation and Chesapeake assumes no obligation to update  the presentation.  Users of the presentation are advised to review public disclosure by Chesapeake subsequent to the date of this presentation.

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Disclaimer

	Full Year
	2006			2005
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in millions)
Operating (loss) income	$	0.3		$	(277.8	)
Add: goodwill impairment charge	$	14.3		$	312.0
Add: restructuring expenses, asset impairments and other exit costs	$	33.4		$	10.7
Less/Add: (gain) loss on divestitures	$	(3.1	)	$	2.8
Operating income exclusive of goodwill impairments, restructuring expenses, asset impairments, and gains or losses on divestitures	$	44.9		$	47.7

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April 25, 2007

Chesapeake

Annual Meeting