**FORM        10-Q**

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

**April        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 APRIL 1, 2007**

**INDEX**

| PART                  I. FINANCIAL                  INFORMATION | PAGE                  NUMBER                                                                                                               |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                            |                                                                                                                                       |   |
| Item                  1.                                        | Financial                  Statements (Unaudited)                                                                                          |   |
|                                                            |                                                                                                                                       |   |
|                                                            | Consolidated                  Statements of Earnings - Quarters ended April 1, 2007, and April                  2,                  2006   | 2 |
|                                                            |                                                                                                                                       |   |
|                                                            | Consolidated                  Balance Sheets at April 1, 2007, and December 31, 2006                                                       | 3 |
|                                                            |                                                                                                                                       |   |
|                                                            | Consolidated                  Statements of Cash Flows - Quarters ended April 1, 2007, and April                  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                                                                | 26 |
|                                                            |                                                                                                                                       |   |
| Item                  4.                                        | Controls                  and Procedures                                                                                                   | 26 |
|                                                            |                                                                                                                                       |
| PART                  II. OTHER                  INFORMATION    |                                                                                                                                       |
|                                                            |                                                                                                                                       |   |
| Item                  1.                                        | Legal                  Proceedings                                                                                                         | 27 |
|                                                            |                                                                                                                                       |   |
| Item                  1A.                                       | Risk                  Factors                                                                                                              | 27 |
|                                                            |                                                                                                                                       |   |
| Item                  6.                                        | Exhibits                                                                                                                                   | 27 |
|                                                            |                                                                                                                                       |
| Signature                                                       | 28                                                                                                                                         |

----

**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 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                                           |   | Apr.                  1, 2007   |   | Apr.                  2, 2006 |   |
|                                                                                                                           |   |                            |   |   |   |
| **Net                  sales**                                                                                                 |   | $                               | 272.0  |   | $ | 253.2 |   |
|                                                                                                                           |   |                            |   |   |   |   |   |
| **Costs                  and expenses:**                                                                                       |   |                            |   |   |   |   |   |
| Cost                  of products sold                                                                                         |   |                            | 222.4  |   |   | 208.6 |   |
| Selling,                  general and administrative expenses                                                                  |   |                            | 34.2   |   |   | 34.3 |   |
| Restructuring                  expenses, asset impairments and other exit costs                                                |   |                            | 0.8    |   |   | 4.0 |   |
| Loss                  on divestiture                                                                                           |   |                            | -      |   |   | 1.0 |   |
| Other                  income, net                                                                                             |   |                            | 0.6    |   |   | 0.9 |   |
| **Operating                  income**                                                                                          |   |                            | 15.2   |   |   | 6.2 |   |
|                                                                                                                           |   |                            |   |   |   |   |   |
| Interest                  expense, net                                                                                         |   |                            | 10.7   |   |   | 9.4 |   |
| Loss                  on extinguishment of debt                                                                                |   |                            | -      |   |   | 0.6 |   |
| **Income                  (loss) from continuing operations before taxes**                                                     |   |                            | 4.5    |   |   | (3.8 | ) |
| Income                  tax expense                                                                                            |   |                            | 3.6    |   |   | - |   |
| **Income                  (loss) from continuing operations**                                                                  |   | $                               | 0.9    |   | $ | (3.8 | ) |
|                                                                                                                           |   |                            |   |   |   |   |   |
| **Discontinued                  operations:**                                                                                  |   |                            |   |   |   |   |   |
| Loss                  from discontinued operations, net of income tax expense of $0.5                  and                  $0 |   |                            | (0.2   | ) |   | (0.9 | ) |
| **Net                  income (loss)**                                                                                         |   | $                               | 0.7    |   | $ | (4.7 | ) |
| **Basic                  earnings per share:**                                                                                 |   |                            |   |   |   |   |   |
| Income                  (loss) from continuing operations                                                                      |   | $                               | 0.05   |   | $ | (0.20 | ) |
| Discontinued                  operations                                                                                       |   |                            | (0.01  | ) |   | (0.04 | ) |
| Net                  income (loss)                                                                                             |   | $                               | 0.04   |   | $ | (0.24 | ) |
| **Diluted                  earnings per share:**                                                                               |   |                            |   |   |   |   |   |
| Income                  (loss) from continuing operations                                                                      |   | $                               | 0.05   |   | $ | (0.20 | ) |
| Discontinued                  operations                                                                                       |   |                            | (0.01  | ) |   | (0.04 | ) |
| Net                  income (loss)                                                                                             |   | $                               | 0.04   |   | $ | (0.24 | ) |
| **Weighted                  average number of common shares outstanding:**                                                     |   |                            |   |   |   |   |   |
| Basic                                                                                                                          |   |                            | 19.4   |   |   | 19.4 |   |
| Diluted                                                                                                                        |   |                            | 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)*

|                                                                   |   | Apr.                  1, 2007 |    | Dec.                  31, 2006 |   |
|------------------------------------------------------------------------|--------|-------------------------------|---------|--------------------------------|--------|
| **ASSETS**                                                             |   |                          |    |                           |   |
|                                                                   |   |                          |    |                           |   |
| **Current                  assets:**                                   |   |                          |    |                           |   |
| Cash                  and cash equivalents                             |   | $                             | 12.8    |                           | $      | 7.8 |   |
| Accounts                  receivable (less allowance of $4.0 and $3.9) |   |                          | 161.2   |                           |   | 146.7 |   |
|                                                                   |   |                          |    |                           |   |   |   |
| **Inventories:**                                                       |   |                          |    |                           |   |   |   |
| Finished                  goods                                        |   |                          | 59.2    |                           |   | 59.5 |   |
| Work-in-process                                                        |   |                          | 19.4    |                           |   | 21.3 |   |
| Materials                  and supplies                                |   |                          | 32.8    |                           |   | 28.6 |   |
| **Total                  inventories**                                 |   |                          | 111.4   |                           |   | 109.4 |   |
|                                                                   |   |                          |    |                           |   |   |   |
| Prepaid                  expenses and other current assets             |   |                          | 21.8    |                           |   | 20.4 |   |
| Income                  taxes receivable                               |   |                          | 3.2     |                           |   | 2.6 |   |
| **Total                  current assets**                              |   |                          | 310.4   |                           |   | 286.9 |   |
|                                                                   |   |                          |    |                           |   |   |   |
| Property,                  plant and equipment, net                    |   |                          | 351.5   |                           |   | 354.1 |   |
| Goodwill                                                               |   |                          | 382.7   |                           |   | 381.2 |   |
| Other                  assets                                          |   |                          | 89.9    |                           |   | 92.6 |   |
| **Total                  assets**                                      |   | $                             | 1,134.5 |                           | $      | 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)*

|                                                                                                                                                                     |   | Apr.                  1, 2007 |    | Dec.                  31, 2006 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------------------------------|--------|
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                |   |                          |    |                           |   |
|                                                                                                                                                                     |   |                          |    |                           |   |
| **Current                  liabilities:**                                                                                                                                |   |                          |    |                           |   |
| Accounts                  payable                                                                                                                                        |   | $                             | 143.7   |                           | $      | 136.8 |   |
| Accrued                  expenses                                                                                                                                        |   |                          | 85.0    |                           |   | 83.9 |   |
| Income                  taxes payable                                                                                                                                    |   |                          | 3.9     |                           |   | 18.1 |   |
| Current                  maturities of long-term debt                                                                                                                    |   |                          | 8.1     |                           |   | 11.8 |   |
| Dividends                  payable                                                                                                                                       |   |                          | 4.3     |                           |   | 4.4 |   |
|                                                                                                                                                                     |   |                          |    |                           |   |   |   |
| **Total                  current liabilities**                                                                                                                           |   |                          | 245.0   |                           |   | 255.0 |   |
|                                                                                                                                                                     |   |                          |    |                           |   |   |   |
| Long-term                  debt                                                                                                                                          |   |                          | 466.4   |                           |   | 456.0 |   |
| Environmental                  liabilities                                                                                                                               |   |                          | 43.2    |                           |   | 43.6 |   |
| Pensions                  and postretirement benefits                                                                                                                    |   |                          | 102.1   |                           |   | 102.7 |   |
| Deferred                  income taxes                                                                                                                                   |   |                          | 6.5     |                           |   | 9.6 |   |
| Long-term                  income taxes payable                                                                                                                          |   |                          | 20.7    |                           |   | - |   |
| Other                  long-term liabilities                                                                                                                             |   |                          | 14.2    |                           |   | 14.2 |   |
|                                                                                                                                                                     |   |                          |    |                           |   |   |   |
| **Total                  liabilities**                                                                                                                                   |   |                          | 898.1   |                           |   | 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                                                                                                                              |   |                          | 93.7    |                           |   | 93.6 |   |
| Accumulated                  other comprehensive (loss)                                                                                                                  |   |                          | (12.4   | )                              |   | (16.7 | ) |
| Retained                  earnings                                                                                                                                       |   |                          | 135.2   |                           |   | 137.0 |   |
|                                                                                                                                                                     |   |                          |    |                           |   |   |   |
| **Total                  stockholders' equity**                                                                                                                          |   |                          | 236.4   |                           |   | 233.7 |   |
|                                                                                                                                                                     |   |                          |    |                           |   |   |   |
| **Total                  liabilities and stockholders' equity**                                                                                                          |   | $                             | 1,134.5 |                           | $      | 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)*

|                                                                                                                                      |   | Quarters                  Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                                                      |   | Apr.                  1, 2007   |   | Apr.                  2, 2006 |   |
| **Operating                  activities:**                                                                                                |   |                            |   |   |   |
| Net                  income (loss)                                                                                                        |   | $                               | 0.7    |   | $ | (4.7 | ) |
| Adjustments                  to reconcile net income (loss) to net cash provided by (used in)                  operating activities: |   |                            |   |   |   |   |   |
| Depreciation                  and amortization                                                                                            |   |                            | 13.2   |   |   | 14.7 |   |
| Deferred                  income taxes                                                                                                    |   |                            | 0.7    |   |   | 0.2 |   |
| Loss                  on extinguishment of debt                                                                                           |   |                            | -      |   |   | 0.6 |   |
| Loss                  on divestiture                                                                                                      |   |                            | -      |   |   | 1.0 |   |
| Pension                  expense                                                                                                          |   |                            | 3.8    |   |   | 5.1 |   |
| Gain                  on sales of property, plant and equipment                                                                           |   |                            | (0.1   | ) |   | (0.6 | ) |
| Changes                  in operating assets and liabilities, net of acquisitions and                  dispositions:                      |   |                            |   |   |   |   |   |
| Accounts                  receivable, net                                                                                                 |   |                            | (13.6  | ) |   | (16.9 | ) |
| Inventories                                                                                                                               |   |                            | (1.4   | ) |   | (0.2 | ) |
| Other                  assets                                                                                                             |   |                            | -      |   |   | 1.8 |   |
| Accounts                  payable                                                                                                         |   |                            | 5.9    |   |   | (3.8 | ) |
| Accrued                  expenses                                                                                                         |   |                            | 4.1    |   |   | (0.7 | ) |
| Income                  taxes payable and receivable, net                                                                                 |   |                            | 3.7    |   |   | 0.6 |   |
| Contributions                  to defined benefit pension plans                                                                           |   |                            | (2.1   | ) |   | (7.7 | ) |
| Other                                                                                                                                     |   |                            | (0.7   | ) |   | (0.4 | ) |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| **Net                  cash provided by (used in) operating activities**                                                                  |   |                            | 14.2   |   |   | (11.0 | ) |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| **Investing                  activities:**                                                                                                |   |                            |   |   |   |   |   |
| Purchases                  of property, plant and equipment                                                                               |   |                            | (12.5  | ) |   | (12.4 | ) |
| Proceeds                  from sales of property, plant and equipment                                                                     |   |                            | 1.1    |   |   | 1.4 |   |
| Proceeds                  from divestiture, net of transaction costs                                                                      |   |                            | -      |   |   | 16.0 |   |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| **Net                  cash (used in) provided by investing activities**                                                                  |   |                            | (11.4  | ) |   | 5.0 |   |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| **Financing                  activities:**                                                                                                |   |                            |   |   |   |   |   |
| Net                  borrowings on lines of credit                                                                                        |   |                            | 6.1    |   |   | 16.4 |   |
| Payments                  on long-term debt                                                                                               |   |                            | (0.5   | ) |   | (10.7 | ) |
| Proceeds                  from long-term debt                                                                                             |   |                            | -      |   |   | 3.2 |   |
| Debt                  issue costs                                                                                                         |   |                            | -      |   |   | (0.8 | ) |
| Dividends                  paid                                                                                                           |   |                            | (4.3   | ) |   | (4.3 | ) |
| Other                                                                                                                                     |   |                            | 0.5    |   |   | - |   |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| **Net                  cash provided by financing activities**                                                                            |   |                            | 1.8    |   |   | 3.8 |   |
| **Effect                  of exchange rate changes on cash and cash                  equivalents**                                        |   |                            | 0.4    |   |   | - |   |
|                                                                                                                                      |   |                            |   |   |   |   |   |
| Increase                  (decrease) in cash and cash equivalents                                                                         |   |                            | 5.0    |   |   | (2.2 | ) |
| Cash                  and cash equivalents at beginning of period                                                                         |   |                            | 7.8    |   |   | 8.7 |   |
| Cash                  and cash equivalents at end of period                                                                               |   | $                               | 12.8   |   | $ | 6.5 |   |

*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**

----

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 SFAS159        will        have a significant impact on our financial statements.

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

**Calculation**

**NOTE        3. COMPREHENSIVE INCOME**

|  *(in                  millions)*                                                                          |   |  Quarters                  Ended |   |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                                                                            |   |                                  |   |   |   |
|                                                                                                            |   | Apr.                  1, 2007         |   | Apr.                  2, 2006 |   |
|                                                                                                            |   |                                  |   |   |   |
| Net                  income (loss)                                                                              |   | $                                     | 0.7    |   | $ | (4.7 | ) |
| Foreign                  currency translation                                                                   |   |                                  | 1.3    |   |   | 6.5 |   |
| Change                  in fair market value of derivatives, net of tax                                         |   |                                  | 1.0    |   |   | (0.1 | ) |
| Amortization                  of unrecognized amounts in net periodic benefit cost, net of                  tax |   |                                  | 2.0    |   |   | (0.9 | ) |
|                                                                                                            |   |                                  |   |   |   |   |   |
| Comprehensive                  income                                                                           |   | $                                     | 5.0    |   | $ | 0.8 |   |

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

----

| ***(in                  millions)***                                                                                                                          |   | Quarters                  Ended                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|                                                                                                                                                          |   | April                  1, 2007                                                             |   |   | April                  2, 2006 |   |   |
| Employee-related                  costs                                                                                                                       |   |                                                                                       |   | $ | 1.1 |   |   |   |   | $ | 3.9 |   |   |   |
| Asset                  impairment                                                                                                                             |   |                                                                                       |   |   | (0.5 | ) |   |   |   |   | — |   |   |   |
| Loss                  on asset sales, redeployment costs, and other exit costs                                                                                |   |                                                                                       |   |   | 0.2 |   |   |   |   |   | 0.3 |   |   |   |
|                                                                                                                                                          |   |                                |   |                                |
| Total                  restructuring expenses, asset impairment and other exit                  costs                                                         |   |                                                                                       |   |   | 0.8 |   |   |   |   |   | 4.2 |   |   |   |
| Less:                  Restructuring expenses, asset impairments and other exit costs                  attributed                  to discontinued operations |   |                                                                                       |   |   | — |   |   |   |   |   | 0.2 |   |   |   |
|                                                                                                                                                          |   |                                |   |                                |
| Restructuring                  expenses, asset impairments and other exit costs attributed to                  continuing                  operations         |   |                                                                                       |   | $ | 0.8 |   |   |   |   | $ | 4.0 |   |   |   |
|                                                                                                                                                          |   |                 |   |                 |
|                                                                                                                                                          |   |                                                                                       |   |   |
|                                                                                                                                                          |   |                                                                                       |   |   |

----

| (***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 |   |                                        | 1.1     |                                   |   | (0.5                                  | )      |      | 0.2     |   |   | 0.8 |   |
| Cash                  payments                                                                                                    |   |                                        | (1.9    | )                                      |   | —                               |   |      | (0.2    | ) |   | (2.1 | ) |
| Asset                  impairment                                                                                                 |   |                                        | — |                                   |   | 0.5                                   |   |      | — |   |   | 0.5 |   |
| Balance                  April 1, 2007                                                                                            |   | $                                           | 1.7     |                                   | $      | —                               |   | $         | 0.5     |   | $ | 2.2 |   |

**NOTE        5. LOSS ON DIVESTITURE**

***Lurgan:***

**NOTE        6. GOODWILL AND INTANGIBLE ASSETS **

----

| 2007                  (remaining 9 months) |   | $      | 1.2 |   |
|--------------------------------------------|--------|--------|-----|--------|
| 2008                                       |   |   | 1.6 |   |
| 2009                                       |   |   | 1.6 |   |
| 2010                                       |   |   | 1.6 |   |
| 2011                                       |   |   | 1.6 |   |

**NOTE        7. DISCONTINUED OPERATIONS**

| ***(in                  millions)*** |   |
|--------------------------------------|--------|
|                                 |   | **Quarter                  ended April 2, 2006** |   |
| Revenue                              |   |   |   |   | $ | 5.8 |   |
|                                 |   |   |   |   |   |   |   |
| Pre-tax                  loss        |   |   |   |   | $ | (0.8 | ) |
|                                 |   |   |   |   |   |   |   |

----

**NOTE        8. INCOME TAXES **

*Accounting        for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109,        Accounting for 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:                |   | Apr.                  1, 2007     |   | Apr.                  2, 2006                                |   | Apr.                  1, 2007 |   | Apr.                  2, 2006 |   | Apr.                  1, 2007 |   | Apr.                  2, 2006 |   |
| Service                  cost                   |   | $                                 | -      |                                                         | $      | - |   | $ | 1.6 |   | $ | 1.7 |   | $ | - |   | $ | - |   |
| Interest                  cost                  |   |                              | 1.0    |                                                         |   | 0.9 |   |   | 5.5 |   |   | 5.1 |   |   | 0.2 |   |   | 0.2 |   |
| Expected                  return on plan assets |   |                              | (1.1   | )                                                            |   | (1.1 | ) |   | (5.7 | ) |   | (4.8 | ) |   | - |   |   | - |   |
| Recognized                  actuarial loss      |   |                              | 0.3    |                                                         |   | 0.4 |   |   | 1.9 |   |   | 2.5 |   |   | 0.1 |   |   | 0.1 |   |
| Curtailment                  loss               |   |                              | -      |                                                         |   | 0.1 |   |   | - |   |   | - |   |   | - |   |   | - |   |
|                                            |   |                              |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  pension expense            |   | $                                 | 0.2    |                                                         | $      | 0.3 |   | $ | 3.3 |   | $ | 4.5 |   | $ | 0.3 |   | $ | 0.3 |   |

**NOTE        11. COMMITMENTS AND CONTINGENCIES**

**Environmental        Matters**

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**Legal        and Other Commitments**

**Guarantees        and Indemnifications**

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**NOTE        12. SEGMENT DISCLOSURE**

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*Disclosures        about Segments of an Enterprise and Related Information*

| *(in                  millions)*                                                |   | **First                  Quarter** |   |
|---------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                            |   | **2007**                           |   | **2006** |   |
| **Net                  sales:**                                                 |   |                               |   |   |   |
| Paperboard                  Packaging                                           |   | $                                  | 225.3  |   | $ | 205.8 |   |
| Plastic                  Packaging                                              |   |                               | 46.7   |   |   | 47.4 |   |
|                                                                            |   |                               |   |   |   |   |   |
| Consolidated                  net sales                                         |   | $                                  | 272.0  |   | $ | 253.2 |   |
|                                                                            |   |                               |   |   |   |   |   |
| **Operating                  income:**                                          |   |                               |   |   |   |   |   |
| Paperboard                  Packaging                                           |   | $                                  | 12.8   |   | $ | 9.5 |   |
| Plastic                  Packaging                                              |   |                               | 7.0    |   |   | 5.7 |   |
| Corporate                                                                       |   |                               | (3.8   | ) |   | (4.0 | ) |
| Restructuring                  expenses, asset impairments and other exit costs |   |                               | (0.8   | ) |   | (4.0 | ) |
| Loss                  on divestiture                                            |   |                               | -      |   |   | (1.0 | ) |
|                                                                            |   |                               |   |   |   |   |   |
| Consolidated                  operating income                                  |   | $                                  | 15.2   |   | $ | 6.2 |   |
|                                                                            |   |                               |   |   |   |   |   |
| **Depreciation                  and amortization:**                             |   |                               |   |   |   |   |   |
| Paperboard                  Packaging                                           |   | $                                  | 11.4   |   | $ | 12.2 |   |
| Plastic                  Packaging                                              |   |                               | 1.7    |   |   | 2.4 |   |
| Corporate                                                                       |   |                               | 0.1    |   |   | - |   |
| Discontinued                  operations                                        |   |                               | -      |   |   | 0.1 |   |
|                                                                            |   |                               |   |   |   |   |   |
| Consolidated                  depreciation and amortization                     |   | $                                  | 13.2   |   | $ | 14.7 |   |

| *(in                  millions)*          |   | **Apr.                  1, 2007** |    | **Dec.                  31, 2006** |   |
|-------------------------------------------|--------|-----------------------------------|---------|------------------------------------|--------|
| **Identifiable                  assets:** |   |                              |    |                               |   |
| Paperboard                  Packaging     |   | $                                 | 872.1   |                               | $      | 859.9 |   |
| Plastic                  Packaging        |   |                              | 179.9   |                               |   | 171.2 |   |
| Corporate                                 |   |                              | 82.5    |                               |   | 83.7 |   |
|                                      |   |                              |    |                               |   |   |   |
| Total                                     |   | $                                 | 1,134.5 |                               | $      | 1,114.8 |   |

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

**Overview        **

|                                                                            |   | Quarter                  Ended |   | Quarter                  Ended    |   |
|---------------------------------------------------------------------------------|--------|--------------------------------|--------|-----------------------------------|--------|
| *(in                  millions)*                                                |   | Apr.                  1, 2007  |   | Apr.                  2, 2006     |   |
|                                                                            |   | Net                  Sales     |   | Operating                  Income |   | Net                  Sales |   | Operating                  Income |   |
| Paperboard                  Packaging                                           |   | $                              | 225.3  |                              | $      | 12.8 |   | $ | 205.8 |   | $ | 9.5 |   |   |   |   |
| Plastic                  Packaging                                              |   |                           | 46.7   |                              |   | 7.0 |   |   | 47.4 |   |   | 5.7 |   |   |   |   |
| Corporate                                                                       |   |                           | -      |                              |   | (3.8 | ) |   | - |   |   | (4.0 | ) |   |   |   |
| Restructuring                  expenses, asset impairments and other exit costs |   |                           | -      |                              |   | (0.8 | ) |   | - |   |   | (4.0 | ) |   |   |   |
| Loss                  on divestiture                                            |   |                           | -      |                              |   | - |   |   | - |   |   | (1.0 | ) |   |   |   |
|                                                                            |   |                           |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                           |   | $                              | 272.0  |                              | $      | 15.2 |   | $ | 253.2 |   | $ | 6.2 |   |   |   |   |

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

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**Discontinued        Operations**

**Segment        Information **

*Paperboard        Packaging *

| *(in                  millions)*           |   |   |   |   |   |  Increase/(Decrease) |   |
|--------------------------------------------|--------|--------|--------|--------|--------|---------------------------|--------|
|                                       |   | 2007   |   | 2006   |   |  $                   | %      |   |
| First                  Quarter:            |   |   |   |   |   |                 |   |   |   |
| Net                  sales                 |   | $      | 225.3  |   | $      | 205.8                     |   |   | 19.5 |   |   | 9.4 |   |
| Operating                  income          |   |   | 12.8   |   |   | 9.5                       |   |   | 3.3 |   |   | 34.7 |   |
| Operating                  income margin % |   |   | 5.7    | %      |   | 4.6                       | %      |   |   |   |   |   |   |
|                                       |   |   |   |   |   |                      |   |   |   |   |   |   |   |

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*Plastic        Packaging *

| *(in                  millions)*           |   |   |   |   |   |  Increase/(Decrease) |   |
|--------------------------------------------|--------|--------|--------|--------|--------|---------------------------|--------|
|                                       |   | 2007   |   | 2006   |   | $                         | %      |   |
| First                  Quarter:            |   |   |   |   |   |                 |   |   |   |
| Net                  sales                 |   | $      | 46.7   |   | $      | 47.4                      |   |   | (0.7 | ) |   | (1.4 | ) |
| Operating                  income          |   |   | 7.0    |   |   | 5.7                       |   |   | 1.3 |   |   | 22.8 |   |
| Operating                  income margin % |   |   | 15.0   | %      |   | 12.0                      | %      |   |   |   |   |   |   |

**Liquidity        and Financial Position**

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**Critical        Accounting Policies**

**Environmental**

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**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**

**Forward-Looking        Statements **

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| **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 *

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**PART        II - OTHER INFORMATION**

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

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

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

| (a)    | Exhibits: |
|--------|-----------|
|   | 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 |

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**SIGNATURE**

|                                          |   | CHESAPEAKE                  CORPORATION         |
|-----------------------------------------------|--------|-------------------------------------------------|
|                                          |   | (Registrant)                                    |
|                                          |   |                                            |
| Date:  May                  8, 2007 | BY:    | /s/                  Guy Faller                 |
|                                          |   | Guy                  Faller                     |
|                                          |   | Controller                                      |
|                                          |   | (Principal                  Accounting Officer) |

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