**FORM      10-Q**

| þ | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

**July      1, 2007**

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | **CHESAPEAKE                CORPORATION**                             |   |
|--------|-----------------------------------------------------------------------|--------|
|   | (Exact                name of registrant as specified in its charter) |   |

| **Virginia**                                                                  |   | **54-0166880**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |
|                                                                          |   |                                                |
| **1021                East Cary Street**                                      |   |                                                |
| **Richmond,                Virginia**                                         |   | **23219**                                           |
| (Address                of principal executive offices)                       |   | Zip                Code                             |

| Registrant's                telephone number, including area code: |   | **804-697-1000** |   |
|--------------------------------------------------------------------|--------|------------------|--------|

|   | **Not                Applicable**                                                                                 |   |
|--------|-------------------------------------------------------------------------------------------------------------------|--------|
|   | (Former                name, former address, and former fiscal year, if changed since last                report) |   |

| Large                accelerated filer o | Accelerated                filer þ | Non-accelerated                filer o |
|------------------------------------------|-----------------------------------------|----------------------------------------|

----

**CHESAPEAKE      CORPORATION**

**FORM      10-Q**

**FOR      THE QUARTERLY PERIOD ENDED JULY 1, 2007**

**INDEX**

| PART                I. FINANCIAL                INFORMATION | PAGE                NUMBER                                                                                                                      |
|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                                                            |   |
| Item                1.                                      | Financial                Statements (Unaudited)                                                                                                 |   |
|                                                        |                                                                                                                                            |   |
|                                                        | Consolidated                Statements of Earnings - Quarters and Six Months ended July 1, 2007,                and                July 2, 2006 | 2 |
|                                                        |                                                                                                                                            |   |
|                                                        | Consolidated                Balance Sheets at July 1, 2007, and December 31, 2006                                                               | 3 |
|                                                        |                                                                                                                                            |   |
|                                                        | Consolidated                Statements of Cash Flows - Six Months ended July 1, 2007, and July                2,                2006            | 5 |
|                                                        |                                                                                                                                            |   |
|                                                        | Notes                to Consolidated Financial Statements                                                                                       | 6 |
|                                                        |                                                                                                                                            |   |
| Item                2.                                      | Management's                Discussion and Analysis of Financial Condition and Results of                Operations                             | 20 |
|                                                        |                                                                                                                                            |   |
| Item                3.                                      | Quantitative                and Qualitative Disclosures About Market Risk                                                                       | 27 |
|                                                        |                                                                                                                                            |   |
| Item                4.                                      | Controls                and Procedures                                                                                                          | 27 |
|                                                        |                                                                                                                                            |
| PART                II. OTHER                INFORMATION    |                                                                                                                                            |
|                                                        |                                                                                                                                            |   |
| Item                1.                                      | Legal                Proceedings                                                                                                                | 29 |
|                                                        |                                                                                                                                            |   |
| Item                1A.                                     | Risk                Factors                                                                                                                     | 29 |
|                                                        |                                                                                                                                            |   |
| Item                2.                                      | Unrecognized              Sales              of Equity Securities and Use of Proceeds                                                           | 29 |
|                                                        |                                                                                                                                            |   |
| Item                4.                                      | Submission                of Matters to a Vote of Security Holders                                                                              | 29 |
|                                                        |                                                                                                                                            |   |
| Item                6.                                      | Exhibits                                                                                                                                        | 30 |
|                                                        |                                                                                                                                            |
| Signature                                                   | 31                                                                                                                                              |

----

| **PART                I - FINANCIAL INFORMATION**                               |
|---------------------------------------------------------------------------------|
| **Item                1: Financial Statements**                                 |
|                                                                            |
| **CHESAPEAKE                CORPORATION AND SUBSIDIARIES**                      |
| **CONSOLIDATED                STATEMENTS OF EARNINGS**                          |
| *(in                millions, except per share data;                unaudited)* |

|                                                                                                                                                                                                                                                                                                                               |   | Quarters                  Ended |   | Six                  Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   | Jul.                  1, 2007   |   | Jul.                  2, 2006     |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |
| **Net                  sales**                                                                                                                                                                                                                                                                                                     |   | $                               | 250.9  |                              | $      | 236.3 |   | $ | 522.9 |   | $ | 489.5 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Costs                  and expenses:**                                                                                                                                                                                                                                                                                           |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Cost                  of products sold                                                                                                                                                                                                                                                                                             |   |                            | 207.9  |                              |   | 194.8 |   |   | 430.3 |   |   | 403.4 |   |
| Selling,                  general and administrative expenses                                                                                                                                                                                                                                                                      |   |                            | 35.1   |                              |   | 32.9 |   |   | 69.3 |   |   | 67.2 |   |
| Restructuring                  expenses, asset impairments and other exit costs                                                                                                                                                                                                                                                    |   |                            | 10.9   |                              |   | 2.1 |   |   | 11.7 |   |   | 6.1 |   |
| Loss                  on divestiture                                                                                                                                                                                                                                                                                               |   |                            | -      |                              |   | - |   |   | - |   |   | 1.0 |   |
| Other                  income, net                                                                                                                                                                                                                                                                                                 |   |                            | 0.4    |                              |   | 1.3 |   |   | 1.0 |   |   | 2.2 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Operating                  (loss) income**                                                                                                                                                                                                                                                                                       |   |                            | (2.6   | )                                 |   | 7.8 |   |   | 12.6 |   |   | 14.0 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Interest                  expense, net                                                                                                                                                                                                                                                                                             |   |                            | 10.8   |                              |   | 9.6 |   |   | 21.5 |   |   | 19.0 |   |
| Loss                  on extinguishment of debt                                                                                                                                                                                                                                                                                    |   |                            | -      |                              |   | - |   |   | - |   |   | 0.6 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Loss                  from continuing operations before taxes**                                                                                                                                                                                                                                                                  |   |                            | (13.4  | )                                 |   | (1.8 | ) |   | (8.9 | ) |   | (5.6 | ) |
| Income                  tax (benefit) expense                                                                                                                                                                                                                                                                                      |   |                            | (1.7   | )                                 |   | (1.1 | ) |   | 1.9 |   |   | (1.1 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Loss                  from continuing operations**                                                                                                                                                                                                                                                                               |   | $                               | (11.7  | )                                 | $      | (0.7 | ) | $ | (10.8 | ) | $ | (4.5 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Discontinued                  operations:**                                                                                                                                                                                                                                                                                      |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Loss                  from discontinued operations, net of income tax of $0.4 and $0                  for the                  quarters ended July 1, 2007 and July 2, 2006, respectively, and                  $0.9 and                  $0 for the six months ended July 1, 2007 and July 2, 2006,                  respectively |   |                            | (0.9   | )                                 |   | (4.1 | ) |   | (1.1 | ) |   | (5.0 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Net                  loss**                                                                                                                                                                                                                                                                                                      |   | $                               | (12.6  | )                                 | $      | (4.8 | ) | $ | (11.9 | ) | $ | (9.5 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Basic                  earnings per share:**                                                                                                                                                                                                                                                                                     |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                                                                                                                                                                                                                                                                   |   | $                               | (0.60  | )                                 | $      | (0.04 | ) | $ | (0.55 | ) | $ | (0.23 | ) |
| Discontinued                  operations                                                                                                                                                                                                                                                                                           |   |                            | (0.05  | )                                 |   | (0.21 | ) |   | (0.06 | ) |   | (0.26 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                          |   | $                               | (0.65  | )                                 | $      | (0.25 | ) | $ | (0.61 | ) | $ | (0.49 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Diluted                  earnings per share:**                                                                                                                                                                                                                                                                                   |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                                                                                                                                                                                                                                                                   |   | $                               | (0.60  | )                                 | $      | (0.04 | ) | $ | (0.55 | ) | $ | (0.23 | ) |
| Discontinued                  operations                                                                                                                                                                                                                                                                                           |   |                            | (0.05  | )                                 |   | (0.21 | ) |   | (0.06 | ) |   | (0.26 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                          |   | $                               | (0.65  | )                                 | $      | (0.25 | ) | $ | (0.61 | ) | $ | (0.49 | ) |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| **Weighted                  average number of common shares outstanding:**                                                                                                                                                                                                                                                         |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                              |   |                            | 19.4   |                              |   | 19.4 |   |   | 19.4 |   |   | 19.4 |   |
| Diluted                                                                                                                                                                                                                                                                                                                            |   |                            | 19.4   |                              |   | 19.4 |   |   | 19.4 |   |   | 19.4 |   |
|                                                                                                                                                                                                                                                                                                                               |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| *The                  accompanying Notes to Consolidated Financial Statements are an                  integral                  part of the financial statements**.*                                                                                                                                                               |

----

**CHESAPEAKE      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

*(in      millions; unaudited)*

|                                                                 |   | Jul.                1, 2007 |    | Dec.                31, 2006 |   |
|----------------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
| **ASSETS**                                                           |   |                        |    |                         |   |
|                                                                 |   |                        |    |                         |   |
| **Current                assets:**                                   |   |                        |    |                         |   |
| Cash                and cash equivalents                             |   | $                           | 4.1     |                         | $      | 7.8 |   |
| Accounts                receivable (less allowance of $4.3 and $3.9) |   |                        | 147.9   |                         |   | 146.7 |   |
|                                                                 |   |                        |    |                         |   |   |   |
| **Inventories:**                                                     |   |                        |    |                         |   |   |   |
| Finished                goods                                        |   |                        | 65.7    |                         |   | 59.5 |   |
| Work-in-process                                                      |   |                        | 20.4    |                         |   | 21.3 |   |
| Materials                and supplies                                |   |                        | 34.0    |                         |   | 28.6 |   |
| **Total                inventories**                                 |   |                        | 120.1   |                         |   | 109.4 |   |
|                                                                 |   |                        |    |                         |   |   |   |
| Prepaid                expenses and other current assets             |   |                        | 25.3    |                         |   | 20.4 |   |
| Income                taxes receivable                               |   |                        | 3.9     |                         |   | 2.6 |   |
| **Total                current assets**                              |   |                        | 301.3   |                         |   | 286.9 |   |
|                                                                 |   |                        |    |                         |   |   |   |
| Property,                plant and equipment, net                    |   |                        | 358.7   |                         |   | 354.1 |   |
| Goodwill                                                             |   |                        | 389.9   |                         |   | 381.2 |   |
| Other                assets                                          |   |                        | 103.2   |                         |   | 92.6 |   |
| **Total                assets**                                      |   | $                           | 1,153.1 |                         | $      | 1,114.8 |   |

*The      accompanying Notes to Consolidated Financial Statements are an integral part      of      the financial statements.*

----

**CHESAPEAKE      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

*(in      millions, except shares and per share amounts; unaudited)*

|                                                                                                                                                                 |   | Jul.                1, 2007 |    | Dec.                31, 2006 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                              |   |                        |    |                         |   |
|                                                                                                                                                                 |   |                        |    |                         |   |
| **Current                liabilities:**                                                                                                                              |   |                        |    |                         |   |
| Accounts                payable                                                                                                                                      |   | $                           | 134.7   |                         | $      | 136.8 |   |
| Accrued                expenses                                                                                                                                      |   |                        | 91.4    |                         |   | 83.9 |   |
| Income                taxes payable                                                                                                                                  |   |                        | 2.8     |                         |   | 18.1 |   |
| Current                maturities of long-term debt                                                                                                                  |   |                        | 6.5     |                         |   | 11.8 |   |
| Dividends                payable                                                                                                                                     |   |                        | -       |                         |   | 4.4 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| **Total                current liabilities**                                                                                                                         |   |                        | 235.4   |                         |   | 255.0 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Long-term                debt                                                                                                                                        |   |                        | 479.7   |                         |   | 456.0 |   |
| Environmental                liabilities                                                                                                                             |   |                        | 56.5    |                         |   | 43.6 |   |
| Pensions                and postretirement benefits                                                                                                                  |   |                        | 103.6   |                         |   | 102.7 |   |
| Deferred                income taxes                                                                                                                                 |   |                        | 5.8     |                         |   | 9.6 |   |
| Long-term                income taxes payable                                                                                                                        |   |                        | 21.1    |                         |   | - |   |
| Other                long-term liabilities                                                                                                                           |   |                        | 17.7    |                         |   | 14.2 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| **Total                liabilities**                                                                                                                                 |   |                        | 919.8   |                         |   | 881.1 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| **Stockholders'                equity:**                                                                                                                             |   |                        |    |                         |   |   |   |
| Preferred                stock, $100 par value, issuable in series; authorized, 500,000 shares;                issued, none                                          |   |                        | -       |                         |   | - |   |
| Common                stock, $1 par value; authorized, 60 million shares; outstanding, 19.9                million shares and 19.8 million shares, respectively |   |                        | 19.9    |                         |   | 19.8 |   |
| Additional                paid-in-capital                                                                                                                            |   |                        | 94.4    |                         |   | 93.6 |   |
| Accumulated                other comprehensive (loss)                                                                                                                |   |                        | (3.6    | )                            |   | (16.7 | ) |
| Retained                earnings                                                                                                                                     |   |                        | 122.6   |                         |   | 137.0 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| **Total                stockholders' equity**                                                                                                                        |   |                        | 233.3   |                         |   | 233.7 |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| **Total                liabilities and stockholders' equity**                                                                                                        |   | $                           | 1,153.1 |                         | $      | 1,114.8 |   |

*The      accompanying Notes to Consolidated Financial Statements are an integral part      of      the financial statements.*

----

**CHESAPEAKE      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

*(in      millions; unaudited)*

|                                                                                                                         |   | Six                Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                                         |   | Jul.                1, 2007     |   | Jul.                2, 2006 |   |
| **Operating                activities:**                                                                                     |   |                            |   |   |   |
| Net                loss                                                                                                      |   | $                               | (11.9  | ) | $ | (9.5 | ) |
| Adjustments                to reconcile net loss to net cash provided by (used in) operating                activities: |   |                            |   |   |   |   |   |
| Depreciation                and amortization                                                                                 |   |                            | 25.9   |   |   | 28.8 |   |
| Deferred                income taxes                                                                                         |   |                            | (0.1   | ) |   | (0.4 | ) |
| Loss                on extinguishment of debt                                                                                |   |                            | -      |   |   | 0.6 |   |
| Loss                on divestiture                                                                                           |   |                            | -      |   |   | 1.0 |   |
| Asset                impairment                                                                                              |   |                            | -      |   |   | 3.0 |   |
| Defined                benefit pension and postretirement expense                                                            |   |                            | 7.5    |   |   | 10.0 |   |
| Gain                on sales of property, plant and equipment                                                                |   |                            | (0.3   | ) |   | (1.7 | ) |
| Changes                in operating assets and liabilities, net of acquisitions and                dispositions:             |   |                            |   |   |   |   |   |
| Accounts                receivable, net                                                                                      |   |                            | 2.2    |   |   | (10.4 | ) |
| Inventories                                                                                                                  |   |                            | (8.1   | ) |   | (0.6 | ) |
| Other                assets                                                                                                  |   |                            | 1.8    |   |   | 3.9 |   |
| Accounts                payable                                                                                              |   |                            | (5.4   | ) |   | (8.3 | ) |
| Accrued                expenses                                                                                              |   |                            | 4.0    |   |   | (6.1 | ) |
| Income                taxes payable and receivable, net                                                                      |   |                            | 2.5    |   |   | (1.5 | ) |
| Contributions                to defined benefit pension plans                                                                |   |                            | (4.2   | ) |   | (11.5 | ) |
| Other                                                                                                                        |   |                            | 1.5    |   |   | 1.7 |   |
|                                                                                                                         |   |                            |   |   |   |   |   |
| **Net                cash provided by (used in) operating activities**                                                       |   |                            | 15.4   |   |   | (1.0 | ) |
|                                                                                                                         |   |                            |   |   |   |   |   |
| **Investing                activities:**                                                                                     |   |                            |   |   |   |   |   |
| Purchases                of property, plant and equipment                                                                    |   |                            | (24.9  | ) |   | (20.4 | ) |
| Proceeds                from sales of property, plant and equipment                                                          |   |                            | 1.3    |   |   | 3.4 |   |
| Proceeds                from divestiture, net of transaction costs                                                           |   |                            | -      |   |   | 15.0 |   |
| Other                                                                                                                        |   |                            | -      |   |   | 0.9 |   |
|                                                                                                                         |   |                            |   |   |   |   |   |
| **Net                cash used in investing activities**                                                                     |   |                            | (23.6  | ) |   | (1.1 | ) |
|                                                                                                                         |   |                            |   |   |   |   |   |
| **Financing                activities:**                                                                                     |   |                            |   |   |   |   |   |
| Net                borrowings on lines of credit                                                                             |   |                            | 12.5   |   |   | 20.3 |   |
| Payments                on long-term debt                                                                                    |   |                            | (1.1   | ) |   | (14.2 | ) |
| Proceeds                from long-term debt                                                                                  |   |                            | -      |   |   | 3.2 |   |
| Debt                issue costs                                                                                              |   |                            | (0.2   | ) |   | (0.8 | ) |
| Dividends                paid                                                                                                |   |                            | (8.5   | ) |   | (8.6 | ) |
| Other                                                                                                                        |   |                            | 0.6    |   |   | - |   |
|                                                                                                                         |   |                            |   |   |   |   |   |
| **Net                cash provided by (used in) financing activities**                                                       |   |                            | 3.3    |   |   | (0.1 | ) |
| **Effect                of exchange rate changes on cash and cash                equivalents**                               |   |                            | 1.2    |   |   | 0.2 |   |
|                                                                                                                         |   |                            |   |   |   |   |   |
| Decrease                in cash and cash equivalents                                                                         |   |                            | (3.7   | ) |   | (2.0 | ) |
| Cash                and cash equivalents at beginning of period                                                              |   |                            | 7.8    |   |   | 8.7 |   |
| Cash                and cash equivalents at end of period                                                                    |   | $                               | 4.1    |   | $ | 6.7 |   |

*The      accompanying Notes to Consolidated Financial Statements are an integral part      of      the financial statements.*

----

**NOTE      1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis      of Presentation**

**Adjustments      for Items Related to Prior Periods**

**New      Accounting Pronouncements**

*Fair      Value Measurements*

----

159,      *The      Fair Value Option for Financial Assets and Financial Liabilities—including an      amendment of FAS 115*      (“SFAS      159”).  SFAS 159 allows companies to choose, at specified election dates,      to measure eligible financial assets and liabilities at fair value that are      not      otherwise required to be measured at fair value. Unrealized gains and losses      shall be reported on items for which the fair value option has been elected      in      earnings at each subsequent reporting date.  SFAS 159 also establishes      presentation and disclosure requirements.  SFAS 159 is effective for fiscal      years beginning after November 15, 2007 and will be applied prospectively. We do not believe the adoption of SFAS 159      will      have a significant impact on our financial statements.

**NOTE      2. EARNINGS PER SHARE ("EPS")**

**Calculation**

**NOTE      3. COMPREHENSIVE INCOME**

| *(in                  millions)*                                                                                |   | Quarters                  Ended |   | Six                  Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|-----------------------------------|--------|
|                                                                                                            |   |                            |   |                              |   |   |   |   |   |
|                                                                                                            |   | Jul.                  1, 2007   |   | Jul.                  2, 2006     |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   |
|                                                                                                            |   |                            |   |                              |   |   |   |   |   |
| Net                  loss                                                                                       |   | $                               | (12.6  | )                                 | $      | (4.8 | ) | $ | (11.9 | ) | $ | (9.5 | ) |
| Foreign                  currency translation                                                                   |   |                            | 7.1    |                              |   | 17.5 |   |   | 8.4 |   |   | 24.0 |   |
| Change                  in fair market value of derivatives, net of tax                                         |   |                            | 0.9    |                              |   | 1.2 |   |   | 1.9 |   |   | 1.1 |   |
| Amortization                  of unrecognized amounts in net periodic benefit cost, net of                  tax |   |                            | 0.8    |                              |   | (4.0 | ) |   | 2.8 |   |   | (4.9 | ) |
|                                                                                                            |   |                            |   |                              |   |   |   |   |   |   |   |   |   |
| Comprehensive                  (loss) income                                                                    |   | $                               | (3.8   | )                                 | $      | 9.9 |   | $ | 1.2 |   | $ | 10.7 |   |

**NOTE      4. RESTRUCTURING AND OTHER EXIT COSTS**

----

| *(in                millions)*                                                                                                                        |   | Quarters                Ended |    | Six                Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|---------------------------------|--------|
|                                                                                                                                                  |   |                          |    |                            |   |   |   |   |   |
|                                                                                                                                                  |   | Jul.                1, 2007   |    | Jul.                2, 2006     |   | Jul.                1, 2007 |   | Jul.                2, 2006 |   |
|                                                                                                                                                  |   |                          |    |                            |   |   |   |   |   |
| Employee-related                  costs                                                                                                               |   | $                             | 10.7    |                            | $      | 2.7 |   | $ | 11.8 |   | $ | 6.5 |   |
| Asset                  impairment                                                                                                                     |   |                          | -  |                            |   | 3.0 |   |   | (0.5 |  ) |   | 3.0 |   |
| Loss                  on asset sales, redeployment costs, and other exit                  costs                                                       |   |                          | 0.2     |                            |   | 0.2 |   |   | 0.4 |   |   | 0.6 |   |
| Total              restructuring expenses, asset impairment              and other exit costs                                                         |   |                          | 10.9    |                            |   | 5.9  |   |   | 11.7  |   |   | 10.1  |   |
| Restructuring                  expenses, asset impairments and other exit costs attributed to                  discontinued operations                |   |                          | -  |                            |   | (3.8 |  ) |   |  - |   |   | (4.0 | )  |
| Restructuring                  expenses, asset impairments and other exit costs attributed to                  continuing                  operations |   | $                             | 10.9    |                            | $      | 2.1 |   | $ | 11.7 |   | $ | 6.1 |   |

----

| (***in                millions***)                                                                                            |   | **Employee-related                Costs** |   | **Asset                Impairments** |   | **Other                Exit Costs** |   | **Total** |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------------------------------------|--------|-------------------------------------|--------|-----------|--------|
| Balance                December 31, 2006                                                                                      |   | $                                         | 2.5    |                                 | $      | -                                   |   | $         | 0.5    |   | $ | 3.0 |   |
| Restructuring                charges, asset impairments and other exit costs (benefits), continuing                operations |   |                                      | 11.8   |                                 |   | (0.5                                | )      |      | 0.4    |   |   | 11.7 |   |
| Cash                payments                                                                                                  |   |                                      | (3.4   | )                                    |   | -                                   |   |      | (0.8   | ) |   | (4.2 | ) |
| Asset                impairment                                                                                               |   |                                      | -      |                                 |   | 0.5                                 |   |      | -      |   |   | 0.5 |   |
| Balance                July 1, 2007                                                                                           |   | $                                         | 10.9   |                                 | $      | -                                   |   | $         | 0.1    |   | $ | 11.0 |   |

**NOTE      5. LOSS ON DIVESTITURE**

***Lurgan:***

----

**NOTE      6. GOODWILL AND INTANGIBLE ASSETS **

| 2007                (remaining 6 months) | $0.8 |
|------------------------------------------|------|
| 2008                                     | 1.6  |
| 2009                                     | 1.6  |
| 2010                                     | 1.6  |
| 2011                                     | 1.6  |

**NOTE      7. DISCONTINUED OPERATIONS**

----

| *(in                millions)* |   | **Quarter                ended****Jul.                2, 2006** |   |                **Six                months ended****Jul.                2, 2006** |   |
|--------------------------------|--------|-----------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                           |   |                                                            |   |                                                                                   |   |
| Revenue                        |   | $                                                               | 7.7    |                                                                                   | $      | 13.5 |   |
|                           |   |                                                            |   |                                                                                   |   |   |   |
| Pre-tax                loss    |   | $                                                               | (3.8   | )                                                                                      | $      | (4.6 | ) |

**NOTE      8. INCOME TAXES **

----

**NOTE      9. DEBT**

**NOTE      10. EMPLOYEE RETIREMENT AND POSTRETIREMENT BENEFITS**

|                                            |   | Pension                  Benefits |   | Postretirement                  Benefits Other Than Pensions |   |
|-------------------------------------------------|--------|-----------------------------------|--------|--------------------------------------------------------------|--------|
| ***(in                  millions)***            |   | U.S.                  Plans       |   | Non-U.S.                  Plans                              |   |   |   |
| Quarters                  Ended:                |   | Jul.                  1, 2007     |   | Jul.                  2, 2006                                |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   |
| Service                  cost                   |   | $                                 | 0.1    |                                                         | $      | - |   | $ | 1.6 |   | $ | 1.8 |   | $ | - |   | $ | - |   |
| Interest                  cost                  |   |                              | 0.9    |                                                         |   | 0.9 |   |   | 5.5 |   |   | 5.4 |   |   | 0.2 |   |   | 0.2 |   |
| Expected                  return on plan assets |   |                              | (1.2   | )                                                            |   | (1.1 | ) |   | (5.8 | ) |   | (5.1 | ) |   | - |   |   | - |   |
| Recognized                  actuarial loss      |   |                              | 0.3    |                                                         |   | 0.3 |   |   | 2.0 |   |   | 2.4 |   |   | 0.1 |   |   | 0.1 |   |
|                                            |   |                              |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  pension expense            |   | $                                 | 0.1    |                                                         | $      | 0.1 |   | $ | 3.3 |   | $ | 4.5 |   | $ | 0.3 |   | $ | 0.3 |   |

|                                            |   | Pension                  Benefits |   | Postretirement                    Benefits Other Than Pensions |   |
|-------------------------------------------------|--------|-----------------------------------|--------|----------------------------------------------------------------|--------|
| ***(in                  millions)***            |   | U.S.                  Plans       |   | Non-U.S.                  Plans                                |   |   |   |
| Six                  Months Ended:              |   | Jul.                  1, 2007     |   | Jul.                  2, 2006                                  |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   | Jul.                  1, 2007 |   | Jul.                  2, 2006 |   |
| Service                  cost                   |   | $                                 | 0.1    |                                                           | $      | - |   | $ | 3.2 |   | $ | 3.5 |   | $ | - |   | $ | - |   |
| Interest                  cost                  |   |                              | 1.9    |                                                           |   | 1.8 |   |   | 11.0 |   |   | 10.5 |   |   | 0.4 |   |   | 0.4 |   |
| Expected                  return on plan assets |   |                              | (2.3   | )                                                              |   | (2.2 | ) |   | (11.5 | ) |   | (9.9 | ) |   | - |   |   | - |   |
| Recognized                  actuarial loss      |   |                              | 0.6    |                                                           |   | 0.7 |   |   | 3.9 |   |   | 4.9 |   |   | 0.2 |   |   | 0.2 |   |
| Curtailment                  loss               |   |                              | -      |                                                           |   | 0.1 |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                            |   |                              |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  pension expense            |   | $                                 | 0.3    |                                                           | $      | 0.4 |   | $ | 6.6 |   | $ | 9.0 |   | $ | 0.6 |   | $ | 0.6 |   |

**NOTE      11. COMMITMENTS AND CONTINGENCIES**

**Environmental      Matters**

----

n      January 2003 DNR and EPA released a Record of Decision (the      "OU1-2 ROD") for Operable Units 1 and 2 ("OU1" and "OU2") of the Fox River      site.      OU1 is the reach of the river that is the farthest upstream and is immediately      adjacent to the former WT mill. The OU1-2 ROD selects a remedy, consisting      primarily of dredging, to remove substantially all sediment in OU1 with      concentrations of PCBs of more than 1 part per million in order to achieve      a      surface weighted-average PCB concentration level ("SWAC") of not more than      0.25      parts per million. The OU1-2 ROD estimates the present-worth cost of the      proposed remedy for OU1 is $66.2 million. Present-worth cost as stated in the      OU1-2 ROD means capital costs in undiscounted 2001 dollars and long-term      operation, maintenance and monitoring costs discounted at 6 percent. This      estimate is an engineering cost estimate and the OU1-2 ROD states that the      actual project cost is expected to be within +50 percent to -30 percent of      the      estimate. The OU1-2 ROD estimates that the proposed dredging remedy for OU1      will      be accomplished over a six-year period after commencement of dredging. For      OU2,      the reach of the river covering approximately 20 miles downstream from OU1,      the      OU1-2 ROD was amended as of June 2007 by a Record of Decision Amendment (the      “Amended OU2-5 ROD”) to provide for dredging and disposal of a single deposit in      OU2. The remainder of OU2 will be addressed by monitored natural recovery as      provided in the original OU1-2 ROD.

----

nder      the terms of the Consent Decree WT also paid EPA and the      State of Wisconsin $375,000 for past response costs, and paid $1.5 million      for      natural resource damages ("NRD") for the Fox River site and $150,000 for past      NRD assessment costs. These payments have been credited toward WT's potential      liability for response costs and NRD associated with the Fox River site as      a      whole. As discussed later in this section we believe that WT is entitled to      substantial indemnification from a prior owner of WT with respect to these      costs, and the prior owner has reimbursed WT for the payments made as required      in the Consent Decree. 

----

n      October 25, 2000 the federal and tribal natural resources      trustees released a Restoration and Compensation Determination Plan ("RCDP")      presenting the federal and tribal trustees' planned approach for restoring      injured federal and tribal natural resources and compensating the public for      losses caused by the release of PCBs at the Fox River site. The RCDP states      that      the final natural resource damage claim (which is separate from, and in addition      to, the remediation and restoration costs that will be associated with remedial      action plans) will depend on the extent of PCB clean-up undertaken by EPA and      DNR, but estimates past interim damages to be $65 million, and, for illustrative      purposes only, estimates additional costs of restoration to address present      and      future PCB damages in a range of $111 million to $268 million. To date Wisconsin      has not issued any estimate of natural resource damages. We believe, based      on      the information currently available to us, that the estimate of natural resource      damages in the RCDP represents the reasonably likely upper limit of the total      natural resource damages. We believe that the alleged damages to natural      resources are overstated in the RCDP and joined in the PRP group comments on      the      RCDP to that effect. No final assessment of natural resource damages has been      issued. 

----

he      ultimate cost to WT of remediation and restoration costs and      natural resource damages related to the Fox River site and the time periods      over      which the costs and damages may be incurred cannot be predicted with certainty      at this time due to uncertainties with respect to: what remediation and      restoration will be implemented; the actual cost of that remediation and      restoration; WT's share of any multi-party remediation and restoration costs      and      natural resource damages; the outcome of the federal and state natural resource      damage assessments; the timing of any remediation and restoration; the evolving      nature of remediation and restoration technologies and governmental regulations;      controlling legal precedent; the extent to which contributions will be available      from other parties; and the scope of potential recoveries from insurance      carriers and prior owners of WT. While such costs and damages cannot be      predicted with certainty at this time, we believe that WT's reasonably likely      share of the ultimate remediation and restoration costs and natural resource      damages associated with the Fox River site, including disbursement on behalf      of      WT of the remaining amount deposited by WT under the terms of the Consent      Decree, may fall within the range of $35 million to $143 million, payable over      a      period of up to 40 years. In our estimate of the lower end of the range we      have      assumed remediation and restoration costs as estimated by our consultants for      OU1 and as estimated in the Amended OU2-5 ROD, and the low end of the      governments' estimates of natural resource damages and WT's share of the      aggregate liability. In our estimate of the upper end of the range we have      assumed substantial dredging in OU1, higher costs in all OUs and that our share      of the ultimate aggregate liability for all PRPs will be higher than we believe      it will ultimately be determined to be. We have accrued an amount for the Fox      River liability based on our estimate of the reasonably probable costs within      the range as described above. 

----

In      the      second quarter of 2007, we reviewed, and increased, our estimate of our      reasonably probable environmental costs based on remediation activities to      date      and other developments. Our accrued environmental liabilities totaled      approximately $72.3 million as of July 1, 2007, of which $15.8 million was      considered short-term, and $53.5 million as of December 31, 2006, of which      $9.9      million was considered short-term.

**Legal      and Other Commitments**

**Guarantees      and Indemnifications**

----

**NOTE      12. SEGMENT DISCLOSURE**

----

*Disclosures      about Segments of an Enterprise and Related Information*

| *(in                  millions)*                                                |   | **Second                  Quarter** |   | **Year                  to Date** |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------|--------|-----------------------------------|--------|
|                                                                            |   | **2007**                            |   | **2006**                          |   | **2007** |   | **2006** |   |
| **Net                  sales:**                                                 |   |                                |   |                              |   |   |   |   |   |
| Paperboard                  Packaging                                           |   | $                                   | 207.2  |                              | $      | 202.1 |   | $ | 432.5 |   | $ | 407.9 |   |
| Plastic                  Packaging                                              |   |                                | 43.7   |                              |   | 34.2 |   |   | 90.4 |   |   | 81.6 |   |
|                                                                            |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| Consolidated                  net sales                                         |   | $                                   | 250.9  |                              | $      | 236.3 |   | $ | 522.9 |   | $ | 489.5 |   |
|                                                                            |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| **Operating                  income:**                                          |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| Paperboard                  Packaging                                           |   | $                                   | 7.0    |                              | $      | 10.4 |   | $ | 19.8 |   | $ | 19.9 |   |
| Plastic                  Packaging                                              |   |                                | 6.0    |                              |   | 3.5 |   |   | 13.0 |   |   | 9.2 |   |
| Corporate                                                                       |   |                                | (4.7   | )                                 |   | (4.0 | ) |   | (8.5 | ) |   | (8.0 | ) |
| Restructuring                  expenses, asset impairments and other exit costs |   |                                | (10.9  | )                                 |   | (2.1 | ) |   | (11.7 | ) |   | (6.1 | ) |
| Loss                  on divestiture                                            |   |                                | -      |                              |   | - |   |   | - |   |   | (1.0 | ) |
|                                                                            |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| Consolidated                  operating income                                  |   | $                                   | (2.6   | )                                 | $      | 7.8 |   | $ | 12.6 |   | $ | 14.0 |   |
|                                                                            |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| **Depreciation                  and amortization:**                             |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| Paperboard                  Packaging                                           |   | $                                   | 10.9   |                              | $      | 12.0 |   | $ | 22.3 |   | $ | 24.2 |   |
| Plastic                  Packaging                                              |   |                                | 1.8    |                              |   | 1.9 |   |   | 3.5 |   |   | 4.3 |   |
| Corporate                                                                       |   |                                | -      |                              |   | 0.1 |   |   | 0.1 |   |   | 0.1 |   |
| Discontinued                  operations                                        |   |                                | -      |                              |   | 0.1 |   |   | - |   |   | 0.2 |   |
|                                                                            |   |                                |   |                              |   |   |   |   |   |   |   |   |   |
| Consolidated                  depreciation and amortization                     |   | $                                   | 12.7   |                              | $      | 14.1 |   | $ | 25.9 |   | $ | 28.8 |   |

| *(in                  millions)*          |   | **Jul.                  1,****2007** |    | **Dec                  31,**** 2006** |   |
|-------------------------------------------|--------|--------------------------------------|---------|--------------------------------------------|--------|
| **Identifiable                  assets:** |   |                                 |    |                                       |   |
| Paperboard                  Packaging     |   | $                                    | 868.5   |                                       | $      | 859.9 |   |
| Plastic                  Packaging        |   |                                 | 182.3   |                                       |   | 171.2 |   |
| Corporate                                 |   |                                 | 102.3   |                                       |   | 83.7 |   |
|                                      |   |                                 |    |                                       |   |   |   |
| Total                                     |   | $                                    | 1,153.1 |                                       | $      | 1,114.8 |   |

----

| **Item                2:** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

**Overview      **

|                                                                            |   | Quarter                  Ended |   | Quarter                  Ended    |   | Six                  Months Ended |   | Six                  Months Ended |   |
|---------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|
| *(in                  millions)*                                                |   | Jul.                  1, 2007  |   | Jul.                  2, 2006     |   | Jul.                  1, 2007     |   | Jul.                  2, 2006     |   |
|                                                                            |   | Net                  Sales     |   | Operating                  Income |   | Net                  Sales        |   | Operating                  Income |   | Net                  Sales |   | Operating                  Income |   | Net                  Sales |   | Operating                  Income |   |
| Paperboard                  Packaging                                           |   | $                              | 207.2  |                              | $      | 7.0                               |   | $                                 | 202.1  |   | $ | 10.4 |   | $ | 432.5 |   | $ | 19.8 |   | $ | 407.9 |   | $ | 19.9 |   |
| Plastic                  Packaging                                              |   |                           | 43.7   |                              |   | 6.0                               |   |                              | 34.2   |   |   | 3.5 |   |   | 90.4 |   |   | 13.0 |   |   | 81.6 |   |   | 9.2 |   |
| Corporate                                                                       |   |                           | -      |                              |   | (4.7                              | )      |                              | -      |   |   | (4.0 | ) |   | - |   |   | (8.5 | ) |   | - |   |   | (8.0 | ) |
| Restructuring                  expenses, asset impairments and other exit costs |   |                           | -      |                              |   | (10.9                             | )      |                              | -      |   |   | (2.1 | ) |   | - |   |   | (11.7 | ) |   | - |   |   | (6.1 | ) |
| Loss                  on divestiture                                            |   |                           | -      |                              |   | -                                 |   |                              | -      |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (1.0 | ) |
|                                                                            |   |                           |   |                              |   |                              |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                           |   | $                              | 250.9  |                              | $      | (2.6                              | )      | $                                 | 236.3  |   | $ | 7.8 |   | $ | 522.9 |   | $ | 12.6 |   | $ | 489.5 |   | $ | 14.0 |   |

** **

----

** **

----

**Chesapeake's      $25-Million Cost Savings Program**

** **
** **
** **

----

**Other      Restructuring Expenses, Asset Impairments and Exit Costs**

**Discontinued      Operations**

**Segment      Information **

*Paperboard      Packaging*

| *(in                millions)*           |   |                                     |   |                                     |   |  Increase/(Decrease) |   |
|------------------------------------------|--------|------------------------------------------|--------|------------------------------------------|--------|---------------------------|--------|
|                                     |   |    2007    |   |    2006    |   | $                    |   | % |   |
| Six                Months:               |   |                                     |   |                                     |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                sales                 |   | $                                        | 432.5  |                                     | $      | 407.9                     |   |   | 24.6 |   |   | 6.0 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income          |   |                                     | 19.8   |                                     |   | 19.9                      |   |   | (0.1 | ) |   | (0.5 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income margin % |   |                                     | 4.6    | %                                        |   | 4.9                       | %      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                     |   |                                     |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| *(in                millions)*           |   |                                     |   |                                     |   |  Increase/(Decrease) |   |
|------------------------------------------|--------|------------------------------------------|--------|------------------------------------------|--------|---------------------------|--------|
|                                     |   |    2007    |   |    2006    |   | $                    |   | % |   |
| Second                Quarter:           |   |                                     |   |                                     |   |                 |   |   |   |
| Net                sales                 |   | $                                        | 207.2  |                                     | $      | 202.1                     |   |   | 5.1 |   |   | 2.5 |   |
| Operating                income          |   |                                     | 7.0    |                                     |   | 10.4                      |   |   | (3.4 | ) |   | (32.7 | ) |
| Operating                income margin % |   |                                     | 3.4    | %                                        |   | 5.1                       | %      |   |   |   |   |   |   |
|                                     |   |                                     |   |                                     |   |                      |   |   |   |   |   |   |   |

----

** **

*Plastic      Packaging *

| *(in                millions)*           |   |                                                             |   |                                                              |   |  Increase/(Decrease) |   |
|------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|---------------------------|--------|
|                                     |   |     2007       |   |     2006        |   | $                    |   | % |   |
| Six                Months:               |   |                                                             |   |                                                                   |   |                 |   |   |   |
| Net                sales                 |   | $                                                                | 90.4   |                                                                   | $      | 81.6                      |   |   | 8.8 |   |   | 10.8 |   |
| Operating                income          |   |                                                             | 13.0   |                                                                   |   | 9.2                       |   |   | 3.8 |   |   | 41.3 |   |
| Operating                income margin % |   |                                                             | 14.4   | %                                                                      |   | 11.3                      | %      |   |   |   |   |   |   |
|                                     |   |                                                             |   |                                                                   |   |                      |   |   |   |   |   |   |   |

| *(in                millions)*           |   |                                                             |   |                                                                   |   |  Increase/(Decrease) |   |
|------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|---------------------------|--------|
|                                     |   |     2007       |   |     2006        |   | $                    |   | % |   |
| Second                Quarter:           |   |                                                             |   |                                                                   |   |                 |   |   |   |
| Net                sales                 |   | $                                                                | 43.7   |                                                                   | $      | 34.2                      |   |   | 9.5 |   |   | 27.8 |   |
| Operating                income          |   |                                                             | 6.0    |                                                                   |   | 3.5                       |   |   | 2.5 |   |   | 71.4 |   |
| Operating                income margin % |   |                                                             | 13.7   | %                                                                      |   | 10.2                      | %      |   |   |   |   |   |   |
|                                     |   |                                                             |   |                                                                   |   |                      |   |   |   |   |   |   |   |

----

**Liquidity      and Financial Position**

**Critical      Accounting Policies**

----

**Environmental**

**Seasonality**

**Adoption      of Financial Accounting Standards Board (“FASB”) Interpretation No. 48 (“FIN      48”), **
***Accounting      for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109,      Accounting for Income Taxes***

----

**New      Accounting Pronouncements**

*Fair      Value Measurements*

*The      Fair Value Option for Financial Assets and Financial Liabilities—including an      amendment of FAS 115*

**Forward-Looking      Statements **

| **Item                3.** | **Quantitative                and Qualitative Disclosure about Market                Risk** |
|----------------------------|---------------------------------------------------------------------------------------------|

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

*Conclusion      Regarding the Effectiveness of Disclosure Controls and      Procedures*

----

*Changes      in Internal Control over Financial Reporting *

----

**PART      II - OTHER INFORMATION**

| **Item                1.** | **Legal                Proceedings** |
|----------------------------|--------------------------------------|

| **Item                1A** | **Risk                Factors** |
|----------------------------|---------------------------------|

| **Item                2.** | **Unrecognized                Sales of Equity Securities                and Use of Proceeds** |
|----------------------------|-----------------------------------------------------------------------------------------------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

|                              |                                                     |                                                             |   |
|-----------------------------------|----------------------------------------------------------|------------------------------------------------------------------|--------|
|                              | Number                of Shares                For  | Number                of SharesAuthority                Withheld |   |
| Jeremy                S.G. Fowden | 15,693,271                                               | 458,339                                                          |   |
| Andrew                J. Kohut    | 15,604,904                                               | 546,706                                                          |   |
| Henri                D. Petit     | 15,692,746                                               | 458,865                                                          |   |
| Frank                S. Royal     | 15,511,654                                               | 639,956                                                          |   |

----

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

| (a)    | Exhibits: |
|--------|-----------|
|   | 4.1       | Amendment                No. 4 dated June 18, 2007 to the Second Amended and Restated Credit                Agreement dated as of February 23, 2004 (filed as exhibit 4.1 to                the                Registrant’s Current Report on Form 8-K dated June 18, 2007 and                incorporated herein by reference) |
|   | 31.1      | Certification                of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   | 31.2      | Certification                of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of                2002 |
|   | 32        | Certifications                of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                Section 906 of the Sarbanes-Oxley Act of                2002 |

----

**SIGNATURE**

|                                           |   | CHESAPEAKE                CORPORATION         |
|------------------------------------------------|--------|-----------------------------------------------|
|                                           |   | (Registrant)                                  |
|                                           |   |                                          |
| Date:  August                9, 2007 | BY:    | /s/                Guy N. A. Faller           |
|                                           |   | Guy                N. A. Faller               |
|                                           |   | Controller                                    |
|                                           |   | (Principal                Accounting Officer) |