1

                                                                   Exhibit 99.1


                                 TUSCARORA LOGO   

NEWS RELEASE

     FOR IMMEDIATE RELEASE                        INVESTOR RELATIONS CONTACT:
     CONTACT:  Brian C. Mullins                   John Nesbett/Jason Thompson
      412/843-8200                                Lippert/Heilshorn & Associates
                                                  212/838-3777

          TUSCARORA ANNOUNCES PRELIMINARY SECOND QUARTER EARNINGS AND
                           COST REDUCTION INITIATIVES

     NEW BRIGHTON, PA - FEBRUARY 2, 1998 -- Tuscarora Incorporated
(NASDAQ:TUSC) announced today that despite higher sales, the company
anticipates a shortfall in earnings for its current quarter which will end on
February 28, 1998, and that it will also take a restructuring charge in the
second quarter.

     Specific initiatives to reduce costs, increase efficiency, and improve
future financial performance will be undertaken immediately. Through the
restructuring, the company hopes to achieve annualized pre-tax net savings of
approximately $1.5 million.

     These initiatives will result in a one time, pre-tax charge of
approximately $3.5 million to be taken in the company's second quarter of fiscal
1998. This charge will be taken to cover the cost of terminations and early
retirements as well as the write-down of certain obsolete or impaired assets
such as buildings not in-service and specific equipment that will no longer be
employed in the company's operations.

     The company indicated that while sales for the second quarter will be
approximately 15% ahead of the same period in the prior year, earnings per
share will be less than the prior year's earnings of $.22 per share of common
stock. Although it is too early to predict earnings precisely for the period,
management believes that earnings from ongoing operations are more likely to
be in the range of $.10 - $.15 per share for the second quarter. The company
will formally report second quarter earnings on March 18, 1998.

     The second quarter earnings decline is attributed to previously disclosed
operating problems in the company's United Kingdom and thermoforming operation,
as well as an unexpectedly severe post-Christmas seasonal slowdown in some of
the company's more mature markets. This seasonal slowdown is most marked in the
company's electronics sector, the largest and fastest growing portion of
Tuscarora's business. John O'Leary, President and CEO, commented, "Although we
have recognized in recent years that most of our high technology and consumer
electronics customers are extremely busy in the latter portion of the calendar
year, we experienced more pronounced seasonality this year as these customers
skewed their output toward year-end and have now slowed their production in the
early part of the new year. Our cost and organizational structure are
apparently not flexible enough to adjust to this new reality and, as a result,
our earnings for the current period will be adversely affected. We must
re-position and re-organize our business to more appropriately respond to the
impact of this seasonality."       
   2


     The company announced that the reorganization and streamlining of its
corporate and sales management structure will result in the elimination of
approximately 30 salaried jobs from a total of 175 positions currently in
existence in these functions. Reductions in field sales personnel, design,
manufacturing service, marketing and general corporate overhead will be
announced and implemented over the next several days.

     Although plant consolidations are not considered to be of significant
impact in this initiative, studies will be undertaken to examine the
feasibility of combining certain Tuscarora facilities in regions where two or
more plants are located in close geographic proximity. Satellite design centers
located in Holden, MA and Burlington, WI will be closed. Design work currently
performed at these locations will be absorbed into the company's design centers
in New Brighton, PA and Grand Blanc, MI.

     John O'Leary further commented, "Although this restructuring is quite
painful and is the first such charge the company has taken in its 35 year
history, management believes it is a necessary and appropriate step to be taken
at this time."

     Looking to the future, O'Leary said, "Tuscarora's solid balance sheet and
strong cash flow continue to provide long-term financial stability for the
business. With new sales activity running at satisfactory levels and operating
improvements expected through the balance of the fiscal year, we believe it is
quite possible to post meaningful period over period gains for the third and
fourth quarters of the current fiscal year."

     Tuscarora Incorporated custom designs and manufacturers interior
protective packaging, material handling solutions and componentry from a broad
range of materials. One of the world's largest manufacturers of custom molded
products made from expanded foam plastic materials, Tuscarora also integrates
multiple materials, such as corrugated paperboard, molded and/or diecut foam
plastics, thermoformed plastics and wood, to meet each customer's specific
end-use requirements. Tuscarora serves more than 3,500 customers located in the
United States, Canada, Mexico and the United Kingdom from 37 manufacturing
locations. Among the company's customers are major manufacturers in the high
technology, consumer electronics, automotive and major appliance and industries.

     This release, other than historical financial information, includes
forward-looking statements that involve risks and uncertainties. Actual results
may differ from those expected. Readers are referred to the documents filed by
the Company with the SEC, particularly the most recent annual report on Form
10-K and subsequent quarterly reports, which may identify risks that could
cause actual results to differ from the forward-looking statements.



                                      ###