|   | [X] | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | [   ] | 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 |
| Securities      registered pursuant to Section 12(b) of the Act:                       |
| Title of each class                                                                    | Name of each exchange on which      registered |
| Common      Stock, par value $1                                                        | New      York Stock Exchange |
| Preferred      Stock Purchase Rights                                                   | New      York Stock Exchange |
| Securities      registered pursuant to Section 12(g) of the      Act:  None  |

----

| PART I       |           |  1 |
|--------------|----------------|---------|
|         |           |    |
|         |           |    |
| Item      1. | Business  | 2       |

| Item      1A. | Risk      Factors  | 16 |
|---------------|-------------------------|----|

| Item      1B. | Unresolved      Staff Comments  | 23 |
|---------------|--------------------------------------|----|

| Item      2. | Properties  | 24 |
|--------------|------------------|----|

| Item      3. | Legal      Proceedings  | 24 |
|--------------|------------------------------|----|

| Item      4. | Submission      of Matters to a Vote of Security Holders  | 24 |
|--------------|----------------------------------------------------------------|----|

| Item      X. | Executive      Officers of the Registrant  | 25 |
|--------------|-------------------------------------------------|----|

| PART II  |                                                                                                                               |  25 |
|---------------|------------------------------------------------------------------------------------------------------------------------------------|----------|
| Item      5.  | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities  | 25       |

| Item      6. | Selected      Financial Data  | 27 |
|--------------|------------------------------------|----|

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations  | 28 |
|--------------|-------------------------------------------------------------------------------------------------------------|----|

| Item      7A. | Quantitative      and Qualitative Disclosures about Market Risk  | 44 |
|---------------|-----------------------------------------------------------------------|----|

| Item      8. | Financial      Statements and Supplementary Data  | 45 |
|--------------|--------------------------------------------------------|----|

| Item      9. | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure  | 81 |
|--------------|------------------------------------------------------------------------------------------------------|----|

| Item      9A. | Controls      and Procedures  | 82 |
|---------------|------------------------------------|----|

| Item      9B. | Other      Information | 82 |
|---------------|------------------------|----|

| PART III  |                                                              |  83 |
|----------------|-------------------------------------------------------------------|----------|
| Item      10.  | Directors,      Executive Officers and Corporate Governance  | 83       |

| Item      11. | Executive      Compensation  | 83 |
|---------------|-----------------------------------|----|

| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters  | 83 |
|---------------|----------------------------------------------------------------------------------------------------------------|----|

| Item      13. | Certain      Relationships and Related Transactions, and Director      Independence  | 83 |
|---------------|-------------------------------------------------------------------------------------------|----|

| Item      14. | Principal      Accountant Fees and Services  | 83 |
|---------------|---------------------------------------------------|----|

| PART IV  |                                                  |  84 |
|---------------|-------------------------------------------------------|----------|
| Item      15. | Exhibits      and Financial Statement Schedules  | 84       |

| SIGNATURES |  85 |
|------------|----------|

| EXHIBIT      INDEX  |  86 |
|--------------------------|----------|

----

| ·   | future      results of operations; |
|--------------------|------------------------------------|

| ·   | liquidity,      cash flow and capital expenditures; |
|--------------------|-----------------------------------------------------|

| ·   | acquisition      and disposition activities and the effect of completed acquisitions and      dispositions, including expected synergies and cost    savings; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | projected      costs and savings associated with restructuring and other cost saving      programs; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | pending      or anticipated litigation; |
|--------------------|-----------------------------------------|

| ·   | debt      levels and the ability to obtain additional financing or make payments on      our debt, and to meet our debt covenant  requirements; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | liabilities      and cash funding obligations associated with defined benefit pension      plans; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | regulatory      developments, industry conditions and market conditions;    and |
|--------------------|---------------------------------------------------------------------------------|

| ·   | general      economic conditions. |
|--------------------|-----------------------------------|

----

| Item      1.   | Business |
|--------------------------|----------|

| ·   | Paperboard      Packaging.  Our Paperboard Packaging segment designs and      manufactures folding cartons, spirally wound composite tubes, leaflets,      labels and other paper and paperboard packaging products.  Our      primary end-use markets are pharmaceutical and healthcare and branded      products (such as alcoholic drinks, confectioneries, foods and      tobacco).  We are one of the leading European suppliers of      paperboard packaging products within several of our end-use markets,      including pharmaceutical and healthcare, alcoholic drinks and      confectioneries.  For the fiscal year ended December 30, 2007,      our Paperboard Packaging segment produced revenues and operating income      (as defined in Item 7 “Management’s Discussion and Analysis of Financial      Condition and Results of Operations – Review of Consolidated Results of      Operations”) of $879.7 million and $36.9 million, respectively, and      accounted for 83% of our net sales. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Plastic      Packaging.  Our Plastic Packaging segment designs and      manufactures plastic containers, bottles, and preforms.  Our      primary end-use markets are agrochemicals, other specialty chemicals, and      food and beverages.  We believe that our Plastic Packaging      segment holds leadership positions within several sectors of our end-use      markets, including HDPE fluorinated barrier containers for agrochemicals      and other specialty chemicals markets, primarily in Europe and China, HDPE      bottles for the Irish dairy market and PET bottles and preforms for soft      drink markets in South Africa.  For the fiscal year ended      December 30, 2007, our Plastic Packaging segment produced revenues and      operating income (as defined in Item 7 “Management’s Discussion and      Analysis of Financial Condition and Results of Operations – Review of      Consolidated Results of Operations”) of $179.9 million and $20.4 million,      respectively, and accounted for 17% of our net  sales. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | creative      packaging designs to position their brands with consumers and      differentiate those brands on the retailshelf; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | technical      expertise and production capabilities to address their special packaging      requirements and desire for innovative packaging  solutions; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | a      broad range of printing processes and a one-stop-shop approach to their      specialty packaging needs; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | suppliers      able and willing to provide innovative solutions beyond their core product      offering; and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | broad      geographic coverage and effective supply chain  offerings. |
|--------------------|-----------------------------------------------------------------------|

----

| ·   | increasing      our focus on business operations that are aligned with our global      strategic vision and that possess what we believe are the driving forces      that will enable us to achieve improved performance in the      market; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | improving      our operational processes; and |
|--------------------|-----------------------------------------------|

| ·   | reducing      our overall company-wide coststructure. |
|--------------------|-------------------------------------------------------|

| ·   | Markets that offer higher      growth potential—pharmaceutical and      healthcare.  We believe that global demand for      pharmaceutical and healthcare products packaging will grow significantly      over the next decade as a result of global population growth, an aging      population in industrialized countries, new drug technology and new      regulatory requirements.  As a leading supplier of      pharmaceutical and healthcare paperboard packaging in Europe, and as a      supplier of plastic packaging for pharmaceutical and healthcare products,      we expect to benefit from this market growth.  We also intend to      increase our share of this market by looking for opportunities to expand      our offerings beyond an already comprehensive range of paperboard      packaging, leaflets and labels. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Markets where brand      positioning and differentiation are important—branded products;      over-the-counter pharmaceutical and healthcare.  Brand      leaders in these markets value our ability to provide sophisticated      creative and structural designs, intricate graphic and embossed details,      and value-added service enhancements.  These process      capabilities have led severalinternational |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | manufacturers      of branded products to designate us as their primary paperboard packaging      supplier.  Many manufacturers of branded products also rely on      us to create and supply the packaging for their product range extensions      or geographic market expansions, which we believe will continue to      generate additional growth opportunities forus. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Markets that have special      packaging requirements.  We are a market leader in      several end-use markets that have special packaging      requirements.  In our Paperboard Packaging segment, our      pharmaceutical packaging plants comply with the Pharmaceutical Supplier      Code of Practice, and individual plants are accredited by their respective      pharmaceutical customers, reflecting our ability to consistently satisfy      the stringent quality standards of our customers.  As a result      of our ability to provide innovative packaging solutions (such as special      features designed to prevent counterfeiting of prescription drugs and      custom dose “patient packs”), together with leaflets and labels, often in      multiple languages, we are one of the largest suppliers of paper-based      pharmaceutical and healthcare packaging in Europe.  In our      Plastic Packaging segment, our proprietary process for blow molding of      fluorinated HDPE barrier containers has helped us to achieve a significant      position in the European market for such containers.  Also in      our Plastic Packaging segment, our South African operation has pioneered      the use of multi-layer technology in PET bottles to prolong the shelf-life      of carbonated products.  This technology is particularly      beneficial in environments with high temperatures and under-developed      distribution channels. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Markets where packaging and      packaging procurement play an important role in supply chain management –      pharmaceuticals; milk; carbonated soft drinks; specialty      chemicals.  We are currently a market leader in the      supply of packaging materials to these markets.  We also have      several product and service offerings in development to help customers      reduce their total cost of supply. These include system-wide monitoring      management tools, anti-counterfeiting developments, and consumer-friendly      packaging innovations. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Geographic markets that offer      the opportunity to leverage a product or market      niche.  As an example, the developing nature of the South      African market offers the opportunity to be a leader by introducing      technology and products that are commonplace in more developed      markets.  By being a leading presence, we can take advantage of      the growth opportunities we believe this market  provides. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sophisticated design and      manufacturing capabilities.  Our sophisticated structural      and creative package design skills, and our experience in printing and      manufacturing complex package designs, are important competitive      strengths.  For example, our pharmaceutical and healthcare      customers rely on our ability to provide both regulatory and marketing      information in attractive and functional paperboard packaging, while      meeting stringent standards for quality and text      integrity.   To support the multifaceted needs of these      customers, we have a packaging designcenter |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | dedicated      solely to the pharmaceutical and healthcare      industries.  Similarly, we are a leading European designer and      supplier of creative paperboard packaging that supports the brand images      of internationally recognized branded products.  For these      customers, our design skills and ability to print and manufacture      packaging that incorporates design and construction features with      intricate graphic and embossed detailing are important to successfully      marketing their products.  In our Plastic Packaging segment, our      technical expertise and experience relating to in-mold fluorinated      blow-molding of HDPE barrier containers is an important competitive      strength.  Additionally, we have recently installed capacity to      produce multilayer PET barrier preforms in South Africa.  New      and existing customers are looking for solutions like multilayer PET      barrier bottles that will extend the shelf life of fruit juice and various      carbonated beverages in Africa where temperatures are elevated and      refrigeration is not widespread.  We have plans to introduce      this new product in several sub-Saharan African  markets. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Understanding of how our      products and services impact our customers’ supply      chains.  In our pharmaceutical and healthcare and branded      products paperboard packaging markets, we have developed a sophisticated,      web-based, system solution to enable our customers to manage and optimize      their packaging supply chain.  This system takes customer demand      information and converts it into amalgamated raw material      requirements.  These requirements can then be cross-checked      against strategically-placed inventories, increasing the speed of      paperboard sourcing and reducing lead times at our      factories.  The system also interfaces with the paperboard      making cycle data from our own approved suppliers.  This type of      capability positions us with our customers as more than simply a      manufacturer of paperboardpackaging. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strong customer      relationships.  We have long standing customer      relationships with many of the world’s largest branded products and      pharmaceutical and healthcare products companies.  Our major      customers include operating units of 3M Company; Diageo plc; Japan Tobacco      International; GlaxoSmithKline plc; Nestlé S.A.; Pernod Ricard S.A.;      Schering-Plough Corporation; Storck KG; and Syngenta AG.  These      long-term relationships, together with our global manufacturing footprint,      enhance our competitive position. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Broad geographic manufacturing      network including pan-European service.  We supply      specialty paperboard and plastic packaging products throughout the world      from a strategically located network of 36 paperboard packaging facilities      in Europe, North America and Asia, and eight plastic packaging facilities      in Europe, Africa and Asia.  Our facilities are generally      located in close proximity to our largest customers.  Our      strategic manufacturing footprint meets our customers’ needs for reduced      delivery times and flexibility in both order size and      geography. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | pharmaceutical      and healthcare; and |
|--------------------|-----------------------------------------|

| ·   | branded      products, such as alcoholic drinks, confectioneries, foods and      tobacco. |
|--------------------|-------------------------------------------------------------------------------------------|

----

----

| ·   | Alcoholic Drinks—We are      the leading supplier of paperboard packaging to alcoholic drinks      manufacturers in Europe.  Our packaging products for the drinks      sector include folding cartons, spirally wound composite tubes, and      self-adhesive or wet applied labels, and are generally complex,      higher-value-added products involving special finishes such as gold      blocking and embossing.  Our competitive strengths in this      market include our experience in designing and manufacturing high graphic      content packaging with a broad range of finishes and effects, and our      one-stop shop approach to supplying labels to complement the principal      packaging application.  Our principal alcoholic drinks customers      include operating units of Diageo plc, William Grant & Sons Inc. and      Pernod Ricard S.A. Products for which we manufacture and design packaging      include international brands such as Johnnie Walker™, J&B®, Chivas      Regal®, Ballentine’s®, Glenfiddich®, Beefeater® and Baileys®. These      products are distributed by our customers to global retail      markets. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Confectioneries—We are      a leading supplier of paperboard packaging to the European confectioneries      industry.  A key feature of this market is the demand for      innovative packaging designs for year-end holiday and Easter      products.  Our competitive strengths in this market include      internationally recognized creative and structural design resources and      process controls designed to prevent taint and odor problems that could      affect confectionery products.  Our principal confectioneries      customers include operating units of Nestlé S.A.; Storck KG; Mars,      Incorporated; Cadbury Schweppes plc; and Chocoladefabriken Lindt &      Sprüngli AG, for their brands which include After Eight®, Mars®      Celebrations®, Merci® and Cadbury’s® Milk Tray®.  These products      are distributed by our customers primarily to European retail markets and,      more recently, in the UnitedStates. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tobacco Products—We are      also a supplier of paperboard packaging for the tobacco industry,      including offset and gravure cartons, carton outers, printed paper and      film, and inner frame board. Our customers, including operating units of      JT International S.A.; Imperial Tobacco Group plc; British American      Tobacco plc; and Altadis, S.A., use our packaging for brands that are      marketed globally.  Our competitive strengths include in-line      high speed gravure printing, embossing and gold leaf processes. Chesapeake      can supply the full range of tobacco printed packaging as well as an      innovative approach to design and service. Brands which use our packaging      include Benson & Hedges® , Silk Cut®, Embassy® and      Fortuna®.  Product packaging has become one of the leading      promotional vehicles for tobacco products because of stringent limitations      on other forms of marketing tobacco products in many      countries. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| ·   | agrochemicals      and other specialty chemicals; and |
|--------------------|-------------------------------------------------------|

| ·   | food      and beverages. |
|--------------------|--------------------------|

----

----

----

Employees

----

|   | • | make it more difficult for us to      generate sufficient cash to satisfy our obligations with respect to      our  indebtedness; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | require us to dedicate a      substantial portion of our cash flow from operations to payments on our      indebtedness, reducing the amount of our cash flow available for other      purposes, including capital expenditures, acquisitions and other general      corporate purposes; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | require us to sell debt or equity      securities or to sell some of our core assets, possibly on less than      favorable terms, to meet debt payment  obligations; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | expose us to risks that are      inherent in interest rate fluctuations because a part of our indebtedness      bears variable rates ofinterest. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | • | initiatives we are contemplating      may require consultation with various works councils, employee      representatives or regulators, and such consultations may influence the      timing, costs and extent of expected  savings; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | initiatives will also require      close coordination with customers with respect to the transfer of existing      business to other company locations, and certain business may not      ultimately be retained as a result of possible closures or consolidations      of facilities; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | projected savings, including      proceeds from sales of related real estate and other assets, contemplated      under this program may fall short of  targets. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | • | The      integration process could disrupt the activities of the businesses that      are being combined. The combination of the businesses or plants may      require, among other things, coordination of administrative and other      functions and consolidation of production capacity. Plant consolidation      may strain our ability to deliver products of acceptable quality in a      timely manner from consolidated facilities. We may experience attrition      among the skilled labor force at the companies acquired in reaction to      being acquired and in reaction to our consolidation of    plants. |
|--------|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   |   | •       | The execution of our integration      plans may divert the attention of our management from operating our      business. |
|--------|--------|---------------|--------------------------------------------------------------------------------------------------------------------------|
|   |   |          |                                                                                                                     |
|   |   | •  |  We      may assume known and unanticipated liabilities and  contingencies.                                         |

|   |   | • | Future acquisitions could cause a      reduction of our reported earnings per share because of the issuance of      additional securities or debt, increased interest costs, goodwill      write-offs and increased income tax  rates. |
|--------|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | costs (such as labor, raw      materials and equipment costs) that fluctuate in the countries in which we      do business because such costs are denominated in non-U.S.      currencies; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | issues      relating to uncertainties of laws and enforcement relating to pensions and      the protection of intellectualproperty; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | changes in trading policies and      regulatory requirements, including export license requirements, trade      barriers, tariffs and taxlaws; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | expropriation of assets,      including bank accounts, intellectual property and physical assets, by      non-U.S. governments; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | divide      our board of directors into three classes of directors serving staggered      three-year terms; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | provide      that directors may be removed only by the affirmative vote of the holders      of at least 80% of the outstanding shares of our common stock (which      required vote may only be changed by the affirmative vote of a majority of      our continuing directors and the holders of two-thirds of our outstanding      common stock); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | require      the affirmative vote of holders of at least 80% of our outstanding shares      of common stock to approve certain business combinations;    and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | require      approval of material acquisition transactions (such as mergers, share      exchanges, and material dispositions of corporate assets not in the      ordinary course of business) between our company and any holder of more      than 10 percent of any class of our outstanding voting shares by the      holders of at least two-thirds of the remaining voting shares of our      company. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item      2.   | Properties |
|--------------------------|------------|

|   | Belgium:  Bornem,      Brussels, Gent |
|--------|-------------------------------------------------|

|   | England:  Bourne,      Bradford, Bristol*, Greenford*, Leicester, Loughborough*, Newcastle,      Nottingham, Portsmouth*, Tewkesbury*,Thatcham* |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | France:  Angoulême,      Lisses, St. Pierre des Corps, Ussel |
|--------|-----------------------------------------------------------------------------|

|   | Germany:  Düren,      Hiddenhausen*, Melle, Neu-Isenburg,Stuttgart |
|--------|-----------------------------------------------------------------------------------|

|   | Netherlands:  Oss |
|--------|-----------------------------|

|   | Northern      Ireland:  Belfast |
|--------|-------------------------------------------|

|   | People’s Republic of      China:  Kunshan* |
|--------|------------------------------------------------------------|

|   | Republic of      Ireland:  Dublin*, Limerick,  Westport |
|--------|-------------------------------------------------------------------|

|   | Scotland:  East      Kilbride, Hamilton*, Hillington* |
|--------|-----------------------------------------------------------------|

|   | Spain:  Madrid* |
|--------|---------------------------|

|   | United      States:  Lake Success, NY*; Lexington, NC; Raleigh,      NC* |
|--------|------------------------------------------------------------------------------------|

|   | Wales:  Wrexham* |
|--------|----------------------------|

|   | England:  Crewe |
|--------|---------------------------|

|   | France:  St.      Etienne |
|--------|-------------------------------------|

|   | Hungary:  Peremarton-gyartelep*** |
|--------|---------------------------------------------|

|   | Mauritius:  Port      Louis* |
|--------|----------------------------------------|

|   | People’s Republic of      China:  Kunshan** |
|--------|-------------------------------------------------------------|

|   | Republic of      Ireland:  Cavan |
|--------|--------------------------------------------|

|   | South      Africa:  Cape Town*,  Harrismith* |
|--------|--------------------------------------------------------|

| * |   Leased      facility. |
|---|-----------------------------------|

| ** |   Facility      owned by a joint venture in which we own a 50%  interest. |
|----|-------------------------------------------------------------------------------------|

| *** |   Facility      owned by a joint venture in which we own a 51%  interest. |
|-----|-------------------------------------------------------------------------------------|

| ****    Two      buildings, one of which is leased. |
|-------------------------------------------------------------------------|

| Item      3.   | Legal      Proceedings |
|--------------------------|------------------------|

| Item      4.   | Submission      of Matters to a Vote of SecurityHolders |
|--------------------------|---------------------------------------------------------|

----

| Item      X. | Executive      Officers of the Registrant |
|--------------|-------------------------------------------|

|   | President      & Chief Executive Officer, Invesprint Corporation, a Canadian      manufacturer of labels (2003-2004) |
|--------|--------------------------------------------------------------------------------------------------------------------------|

| Item      5.   | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------|

----

|                |   | Market      Price |   |   |   |   |
|---------------------|--------|-------------------|--------|--------|--------|--------|
|                |   | High              |   |   | Low    |   |   | DividendsDeclared |   |
| 2007                |   |              |   |   |   |   |   |   |   |
| First      quarter  |   | $                 | 18.68  |   |   | $      | 13.55 |   |   | $ | 0.22 |   |
| Second      quarter |   |              | 16.07  |   |   |   | 12.14 |   |   |   | — |   |
| Third      quarter  |   |              | 13.21  |   |   |   | 8.32 |   |   |   | — |   |
| Fourth      quarter |   |              | 9.20   |   |   |   | 4.81 |   |   |   | — |   |
| 2006                |   |              |   |   |   |   |   |   |   |   |   |   |
| First      quarter  |   | $                 | 17.27  |   |   | $      | 13.08 |   |   | $ | 0.22 |   |
| Second      quarter |   |              | 16.48  |   |   |   | 13.13 |   |   |   | 0.22 |   |
| Third      quarter  |   |              | 16.78  |   |   |   | 12.94 |   |   |   | — |   |
| Fourth      quarter |   |              | 17.50  |   |   |   | 13.72 |   |   |   | 0.44 |   |

|                                                            |   |   Number      of securities to be issued upon exercise of outstanding options, warrants      and rights |   |   Weighted-average      exercise price of outstanding options, warrants and rights |   | Number      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected in column      (a)) |
|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Plan category                                                   |   | (a)                                                                                                               |   | (b)                                                                                          |   | (c)                                                                                                                                                        |
| Equity      compensation plans approved by security holders     |   | 1,306,230                                                                                                         |   | $25.83                                                                                       |   | 4,974,517                                                                                                                                                  |
| Equity      compensation plans not approved by security holders |   | -                                                                                                                 |   | -                                                                                            |   | -                                                                                                                                                          |
| Total                                                           |   | 1,306,230                                                                                                         |   | $25.83                                                                                       |   | 4,974,517                                                                                                                                                  |

----

| Item      6.   | Selected      Financial Data |
|--------------------------|------------------------------|

| (dollar amounts in millions,      except per share data) |   | 2007(1) |    |   | 2006(2) |   |    | 2005(3) |   |   | 2004(4) |   |   | 2003(5) |    |
|----------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---------|---------|
| Operating      Results                                   |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |
| Net sales                                                |   | $       | 1,059.6 |   |    | $      | 995.4   |    |   | $      | 1,009.2 |   |   | $       | 997.9   |   |   | $ | 850.4 |   |
| (Loss) income from continuing      operations            |   |    | (13.8   | )      |    |   | (32.4   | )       |   |   | (306.7  | )      |   |    | 16.2    |   |   |   | 24.1 |   |
| Discontinued      operations                             |   |    | (1.7    | )      |    |   | (7.2    | )       |   |   | (7.6    | )      |   |    | (4.5    | ) |   |   | 2.8 |   |
| Net (loss) income                                        |   |    | (15.5   | )      |    |   | (39.6   | )       |   |   | (314.3  | )      |   |    | 11.7    |   |   |   | 26.9 |   |
| Cash dividends declared on common      stock             |   |    | 4.1     |   |    |   | 17.3    |    |   |   | 17.1    |   |   |    | 17.0    |   |   |   | 13.4 |   |
| Net cash provided by operating      activities           |   |    | 24.1    |   |    |   | 21.7    |    |   |   | 44.6    |   |   |    | 93.1    |   |   |   | 80.0 |   |
| Common      Stock                                        |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |   |   |   |   |   |
| Number of stockholders of record      at year-end        |   |    | 4,041   |   |    |   | 4,304   |    |   |   | 4,422   |   |   |    | 4,553   |   |   |   | 4,744 |   |
| Shares outstanding at year-end      (in millions)        |   |    | 19.9    |   |    |   | 19.8    |    |   |   | 19.6    |   |   |    | 19.6    |   |   |   | 15.3 |   |
| Per share                                                |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |   |   |   |   |   |
| Basic earnings from continuing      operations           |   | $       | (0.71   | )      |    | $      | (1.67   | )       |   | $      | (15.81  | )      |   | $       | 0.88    |   |   | $ | 1.59 |   |
| Basic earnings                                           |   |    | (0.80   | )      |    |   | (2.04   | )       |   |   | (16.20  | )      |   |    | 0.63    |   |   |   | 1.77 |   |
| Diluted earnings from continuing      operations         |   |    | (0.71   | )      |    |   | (1.67   | )       |   |   | (15.81  | )      |   |    | 0.88    |   |   |   | 1.59 |   |
| Diluted earnings                                         |   |    | (0.80   | )      |    |   | (2.04   | )       |   |   | (16.20  | )      |   |    | 0.63    |   |   |   | 1.77 |   |
| Dividendsdeclared                                        |   |    | 0.22    |   |    |   | 0.88    |    |   |   | 0.88    |   |   |    | 0.88    |   |   |   | 0.88 |   |
| Year-end stockholders’      equity                 |   |    | 14.13   |   |    |   | 11.80   |    |   |   | 15.07   |   |   |    | 36.34   |   |   |   | 37.26 |   |
| Financial      Position at Year-end                      |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |   |   |   |   |   |
| Working capital                                          |   | $       | 93.9    |   |    | $      | 31.9    |    |   | $      | 8.8     |   |   | $       | 21.3    |   |   | $ | 62.9 |   |
| Property, plant and equipment,      net                  |   |    | 358.7   |   |    |   | 354.1   |    |   |   | 372.0   |   |   |    | 427.2   |   |   |   | 431.6 |   |
| Total assets                                             |   |    | 1,213.7 |   |    |   | 1,114.8 |    |   |   | 1,123.0 |   |   |    | 1,557.0 |   |   |   | 1,492.8 |   |
| Debt                                                     |   |    | 515.3   |   |    |   | 467.8   |    |   |   | 432.9   |   |   |    | 428.9   |   |   |   | 486.9 |   |
| Stockholders’    equity                            |   |    | 281.2   |   |    |   | 233.7   |    |   |   | 295.3   |   |   |    | 712.2   |   |   |   | 570.1 |   |
| Total capital                                            |   |    | 796.5   |   |    |   | 701.5   |    |   |   | 728.2   |   |   |    | 1,141.1 |   |   |   | 1,057.0 |   |
| Percent of debt                                          |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |   |   |   |   |   |
| To total capital                                         |   |    | 64.7    | %      |    |   | 66.7    | %       |   |   | 59.4    | %      |   |    | 37.6    | % |   |   | 46.1 | % |
| To stockholders’      equity                       |   |    | 183.3   |   |    |   | 200.2   |    |   |   | 146.6   |   |   |    | 60.2    |   |   |   | 85.4 |   |
| Additional      Data                                     |   |    |    |   |    |   |    |    |   |   |    |   |   |    |    |   |   |   |   |   |
| Number of employees at      year-end                     |   |    | 5,427   |   |    |   | 5,553   |    |   |   | 6,129   |   |   |    | 5,988   |   |   |   | 5,875 |   |

|   | Notes to Five-Year Comparative      Record: |
|--------|---------------------------------------------|

| (1) | Continuing      operations included after-tax restructuring charges of $13.4 million; an      after-tax gain on divestitures of $1.5 million; an income tax benefit $3.8      million related to the resolution of income tax contingencies; and an      income tax benefit of $1.2 million resulting from a re-evaluation of our      deferred taxes for changes in U.K. tax law and changes in statutory tax      rates for the U.K. and Germany. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | Continuing      operations included an after-tax goodwill impairment charge of $14.3      million; after-tax restructuring charges of $27.4 million; an after-tax      gain on divestitures of $2.9 million; and an after-tax loss on      extinguishment of debt of $0.6 million.  Continuing operations      also included an income tax benefit of $5.7 million as a result of      management’s reassessment of the Company’s deferred tax assets in France      following the sale of CLP and the favorable settlements of income tax      contingencies with income taxauthorities. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Continuing      operations included an after-tax goodwill impairment charge of $311.7      million; after-tax restructuring charges of $8.7 million; an after-tax      loss on divestitures of $2.8 million; an after-tax loss on extinguishment      of debt of $0.5 million; and an income tax benefit of $1.9 million related      to the resolution of income taxcontingencies. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Continuing      operations included an after-tax loss on extinguishment of debt of $6.2      million and a $3.3 million tax benefit related to favorable settlements of      U.S. and U.K. tax return audits. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Continuing      operations included an after-tax gain on the settlement of environmental      indemnity obligations of $7.7million. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7.   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|--------------------------|-------------------------------------------------------------------------------------------------------|

----

----

----

----

| (dollars  in      millions) |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |   |   |   |
| Net      sales                        |   | $      | 879.7  |   |   | $      | 840.4  |   |   | $ | 827.4 |   |
| Operating      income                 |   |   | 36.9   |   |   |   | 42.9   |   |   |   | 49.8 |   |
| Operating      income margin %        |   |   | 4.2    | %      |   |   | 5.1    | %      |   |   | 6.0 | % |

----

| (dollars  in      millions) |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |   |   |   |
| Net      sales                        |   | $      | 179.9  |   |   | $      | 155.0  |   |   | $ | 181.8 |   |
| Operating      income                 |   |   | 20.4   |   |   |   | 17.9   |   |   |   | 15.0 |   |
| Operating      income margin %        |   |   | 11.3   | %      |   |   | 11.5   | %      |   |   | 8.3 | % |

| ·   | increasing      our focus on business operations that are aligned with our global      strategic vision and that possess what we believe are the driving forces      that will enable us to achieve improved performance in the      market; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | improving      our operational processes; and |
|--------------------|-----------------------------------------------|

| ·   | reducing      our overall company-wide coststructure. |
|--------------------|-------------------------------------------------------|

----

|                                             |   | 2007   |   |   | 2006           |   |   | 2005   |   |
|--------------------------------------------------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|
| (in      millions, except per share data)        |   | Amount |   |   | Per      Share |   |   | Amount |   |   | Per      Share |   |   | Amount |   |   | Per      Share |   |
|                                             |   |   |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      operations:                    |   |   |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from discontinued operations  |   | $      | 0.3    |   |           | $      | 0.01   |   |   | $ | (4.4 | ) |   | $ | (0.23 | ) |   | $ | (5.2 | ) |   | $ | (0.27 | ) |
| Loss      on disposal of discontinued operations |   | $      | (2.0   | )      |           | $      | (0.10  | )      |   | $ | (2.8 | ) |   | $ | (0.14 | ) |   | $ | (2.4 | ) |   | $ | (0.12 | ) |

----

|                                    |   | Payments      Due by Period(1) |   |
|-----------------------------------------|--------|--------------------------------|--------|
| (in      millions)                      |   | Total                          |   |   | Less      Than 1 Year |   |   | 1-3      Years |   |   | 3-5      Years |   |   | After      5 Years |   |
|                                    |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt(2)                  |   | $                              | 512.4  |   |   | $ | 7.0 |   |   | $ | 172.1 |   |   | $ | 136.2 |   |   | $ | 197.1 |   |
| Interest(3)                             |   |                           | 164.9  |   |   |   | 28.0 |   |   |   | 55.0 |   |   |   | 40.8 |   |   |   | 41.1 |   |
| Operating      leases                   |   |                           | 26.3   |   |   |   | 6.7 |   |   |   | 8.9 |   |   |   | 5.2 |   |   |   | 5.5 |   |
| Other      commitments(4)               |   |                           | 16.5   |   |   |   | 15.5 |   |   |   | 0.6 |   |   |   | 0.4 |   |   |   | - |   |
| Total      contractual cash obligations |   | $                              | 720.1  |   |   | $ | 57.2 |   |   | $ | 236.6 |   |   | $ | 182.6 |   |   | $ | 243.7 |   |

| (1) | Cash      requirements related to current liabilities reflected on the balance      sheet, such as accounts payable, income taxes payable, dividends payable      and accrued expenses, are payable within one year and are not included in      this table. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts      exclude non-cash amortizing premiums or discounts classified in our      balance sheet as long-term debt.  Borrowings under the senior      credit facility are classified as due at the facility’s maturity in      2009.  Borrowings under uncommitted lines of credit are      classified as due in less than 1year. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Contractual      interest payments are calculated using outstanding debt balances, interest      rates and foreign exchange rates in effect at December 30,      2007.  Estimates do not include the effects of any potential      early redemptions or refinancings.  Interest on amounts owed      under lines of credit is notincluded. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amounts      exclude required employer contributions which are expected to approximate      $21.1 million.  This includes required supplementary employer      pension contributions under a pension recovery plan, which are expected to      approximate at least $12 million per year under current valuations and      will continue for an undetermined time period. Furthermore, future      supplementary employer pension contributions as provided under the pension      recovery plan may need to be materially increased if the funding level of      one of our U.K. pension plans is not at least 90% by April 5,      2008.  In addition, amounts exclude $28.5 million of      unrecognized tax benefits related to uncertain tax      positions.  The timing of settlement of these uncertain tax      positions is not estimable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in      millions)                  |   | Total      Amounts Committed |   |   | Less      Than 1 Year |   |    | 1-3      Years |   |   | 3-5      Years |   |
|-------------------------------------|--------|------------------------------|--------|--------|----------------------------|--------|---------|----------------|--------|--------|----------------|--------|
|                                |   |                         |   |   |                       |   |    |           |   |   |           |   |
| Committed      lines of credit(1)   |   | $                            | 250.0  |   |                       | $      | — |           |   | $      | 250.0          |   |   | $ | — |   |
| Uncommitted      lines of credit(2) |   |                         | 11.8   |   |                       |   | 11.8    |           |   |   | —        |   |   |   | — |   |
| Standby      letters of credit(3)   |   |                         | 1.6    |   |                       |   | 1.6     |           |   |   | —        |   |   |   | — |   |
| Total      commercial commitments   |   | $                            | 263.4  |   |                       | $      | 13.4    |           |   | $      | 250.0          |   |   | $ | — |   |

| (1) | Borrowings      of $165.9 million under these lines of credit were included in long-term      debt at December 30, 2007.  Amounts available to be borrowed      under the lines of credit are limited by the amount currently borrowed,      the amounts of outstanding letters of credit ($1.5 million at December 30,      2007) and any debt covenantrestrictions. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Borrowings      of $4.5 million  under uncommitted lines of credit, were      included in long-term debt at December 30,2007. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      $0.1 million of back-up letters ofcredit. |
|-----|---------------------------------------------------------|

----

----

----

----

----

----

----

----

| Item      7A.   | Quantitative      and Qualitative Disclosures about MarketRisk |
|---------------------------|----------------------------------------------------------------|

----

| Item      8.   | Financial      Statements and Supplementary Data |
|--------------------------|--------------------------------------------------|

| Consolidated      Balance Sheets as of December 30, 2007 and December 31,    2006 |
|-----------------------------------------------------------------------------------|

| Consolidated      Statements of Operations for the years ended December 30, 2007, December      31, 2006, and January 1, 2006 |
|-------------------------------------------------------------------------------------------------------------------------------|

| Consolidated      Statements of Cash Flows for the years ended December 30, 2007, December      31, 2006, and January 1, 2006 |
|-------------------------------------------------------------------------------------------------------------------------------|

| Consolidated      Statements of Changes in Stockholders’ Equity for the years ended December      30, 2007, December 31, 2006, and January 1,2006 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| Notes      to Consolidated FinancialStatements |
|------------------------------------------------|

| Recent      Quarterly Results |
|-------------------------------|

| Report      of Independent Registered Public AccountingFirm |
|-------------------------------------------------------------|

----

|                                                                                                                                       |   | December      30,2007 |    |   | December      31,2006 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|
| (in      millions)                                                                                                                         |   |                  |    |   |                  |   |
| Assets                                                                                                                                     |   |                  |    |   |                  |   |
| Current      assets:                                                                                                                       |   |                  |    |   |                  |   |
| Cash      and cash equivalents                                                                                                             |   | $                     | 10.0    |   |                  | $      | 7.8 |   |
| Accounts      receivable (less allowance of $3.6 and $3.9)                                                                                 |   |                  | 163.6   |   |                  |   | 146.7 |   |
| Inventories                                                                                                                                |   |                  | 121.4   |   |                  |   | 109.4 |   |
| Prepaid      expenses and other current assets                                                                                             |   |                  | 29.9    |   |                  |   | 20.4 |   |
|         Income      taxes receivable                                                               |   |                  | 6.3     |   |                  |   | 2.6 |   |
| Total      current assets                                                                                                                  |   |                  | 331.2   |   |                  |   | 286.9 |   |
|                                                                                                                                       |   |                  |    |   |                  |   |   |   |
| Property,      plant and equipment:                                                                                                        |   |                  |    |   |                  |   |   |   |
| Plant      sites and buildings                                                                                                             |   |                  | 188.8   |   |                  |   | 188.2 |   |
| Machinery      and equipment                                                                                                               |   |                  | 388.6   |   |                  |   | 402.5 |   |
| Construction      in progress                                                                                                              |   |                  | 12.8    |   |                  |   | 7.5 |   |
|                                                                                                                                       |   |                  | 590.2   |   |                  |   | 598.2 |   |
| Less      accumulated depreciation                                                                                                         |   |                  | 231.5   |   |                  |   | 244.1 |   |
| Net      property, plant and equipment                                                                                                     |   |                  | 358.7   |   |                  |   | 354.1 |   |
| Goodwill                                                                                                                                   |   |                  | 387.4   |   |                  |   | 381.2 |   |
| Other      assets                                                                                                                          |   |                  | 136.4   |   |                  |   | 92.6 |   |
| Total      assets                                                                                                                          |   | $                     | 1,213.7 |   |                  | $      | 1,114.8 |   |
|                                                                                                                                       |   |                  |    |   |                  |   |   |   |
| Liabilities      and Stockholders’ Equity                                                                                            |   |                  |    |   |                  |   |   |   |
| Current      liabilities:                                                                                                                  |   |                  |    |   |                  |   |   |   |
| Accounts      payable                                                                                                                      |   | $                     | 147.2   |   |                  | $      | 136.8 |   |
| Accrued      expenses                                                                                                                      |   |                  | 81.4    |   |                  |   | 83.9 |   |
| Income      taxes payable                                                                                                                  |   |                  | 1.8     |   |                  |   | 18.1 |   |
| Current      portion of long-term debt                                                                                                     |   |                  | 6.9     |   |                  |   | 11.8 |   |
| Dividends      payable                                                                                                                     |   |                  | — |   |                  |   | 4.4 |   |
| Total      current liabilities                                                                                                             |   |                  | 237.3   |   |                  |   | 255.0 |   |
|                                                                                                                                       |   |                  |    |   |                  |   |   |   |
| Long-term      debt                                                                                                                        |   |                  | 508.4   |   |                  |   | 456.0 |   |
| Environmental      liabilities                                                                                                             |   |                  | 58.9    |   |                  |   | 43.6 |   |
| Pensions      and postretirement benefits                                                                                                  |   |                  | 38.5    |   |                  |   | 102.7 |   |
| Deferred      income taxes                                                                                                                 |   |                  | 43.8    |   |                  |   | 9.6 |   |
| Long-term      income taxes payable                                                                                                        |   |                  | 28.5    |   |                  |   | — |   |
| Other      long-term liabilities                                                                                                           |   |                  | 17.1    |   |                  |   | 14.2 |   |
| Total      liabilities                                                                                                                     |   |                  | 932.5   |   |                  |   | 881.1 |   |
|                                                                                                                                       |   |                  |    |   |                  |   |   |   |
| Stockholders’      equity:                                                                                                           |   |                  |    |   |                  |   |   |   |
| 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                                                                                                            |   |                  | 94.2    |   |                  |   | 93.6 |   |
| Accumulated      other comprehensive income (loss)                                                                                         |   |                  | 47.9    |   |                  |   | (16.7 | ) |
| Retained      earnings                                                                                                                     |   |                  | 119.2   |   |                  |   | 137.0 |   |
| Total      stockholders’ equity                                                                                                      |   |                  | 281.2   |   |                  |   | 233.7 |   |
| Total      liabilities and stockholders’ equity                                                                                      |   | $                     | 1,213.7 |   |                  | $      | 1,114.8 |   |

----

| For      the fiscal years ended:(in      millions, except per share data)                                       |   | December      30,2007 |    |   | December      31,2006 |   |   | January      1,2006 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                            |   |                  |    |   |                  |   |   |                |   |
| Operations:                                                                                                     |   |                  |    |   |                  |   |   |                |   |
| Net      sales                                                                                                  |   | $                     | 1,059.6 |   |                  | $      | 995.4  |                |   | $ | 1,009.2 |   |
| Cost      of products sold                                                                                      |   |                  | 880.4   |   |                  |   | 820.1  |                |   |   | 827.8 |   |
| Selling,      general and administrative expenses                                                               |   |                  | 142.4   |   |                  |   | 134.1  |                |   |   | 135.2 |   |
| Goodwill      impairment charge                                                                                 |   |                  | -       |   |                  |   | 14.3   |                |   |   | 312.0 |   |
| Restructuring      expenses, asset impairments and otherexit      costs                                         |   |                  | 15.8    |   |                  |   | 33.4   |                |   |   | 10.7 |   |
| (Gain)      loss on divestitures                                                                                |   |                  | (1.5    | )      |                  |   | (3.1   | )                   |   |   | 2.8 |   |
| Other      income, net                                                                                          |   |                  | 4.2     |   |                  |   | 3.7    |                |   |   | 1.5 |   |
| Operating      income (loss)                                                                                    |   |                  | 26.7    |   |                  |   | 0.3    |                |   |   | (277.8 | ) |
| Interest      expense, net                                                                                      |   |                  | 44.6    |   |                  |   | 39.8   |                |   |   | 32.8 |   |
|  Loss      on extinguishment of debt                                                                       |   |                  | -       |   |                  |   | 0.6    |                |   |   | 0.5 |   |
| Loss      from continuing operations before taxes                                                               |   |                  | (17.9   | )      |                  |   | (40.1  | )                   |   |   | (311.1 | ) |
| Income      tax benefit                                                                                         |   |                  | (4.1    | )      |                  |   | (7.7   | )                   |   |   | (4.4 | ) |
| Loss      from continuing operations                                                                            |   |                  | (13.8   | )      |                  |   | (32.4  | )                   |   |   | (306.7 | ) |
| Income      (loss) from discontinued operations, net of income tax expense of $0.1,      $0.0 and $0.1          |   |                  | 0.3     |   |                  |   | (4.4   | )                   |   |   | (5.2 | ) |
| Loss      on disposal of discontinued operations, net of income tax expense of $1.6,      $0.0 and $0.0         |   |                  | (2.0    | )      |                  |   | (2.8   | )                   |   |   | (2.4 | ) |
| Net      loss                                                                                                   |   | $                     | (15.5   | )      |                  | $      | (39.6  | )                   |   | $ | (314.3 | ) |
| Basic      earnings per share:                                                                                  |   |                  |    |   |                  |   |   |                |   |   |   |   |
| Loss      from continuing operations                                                                            |   | $                     | (0.71   | )      |                  | $      | (1.67  | )                   |   | $ | (15.81 | ) |
| Discontinued      operations, net of income taxes                                                               |   |                  | (0.09   | )      |                  |   | (0.37  | )                   |   |   | (0.39 | ) |
| Basic      loss per share                                                                                       |   | $                     | (0.80   | )      |                  | $      | (2.04  | )                   |   | $ | (16.20 | ) |
| Diluted      earnings per share:                                                                                |   |                  |    |   |                  |   |   |                |   |   |   |   |
| Loss      from continuing operations                                                                            |   | $                     | (0.71   | )      |                  | $      | (1.67  | )                   |   | $ | (15.81 | ) |
| Discontinued      operations, net of income taxes                                                               |   |                  | (0.09   | )      |                  |   | (0.37  | )                   |   |   | (0.39 | ) |
| Diluted      loss per share                                                                                     |   | $                     | (0.80   | )      |                  | $      | (2.04  | )                   |   | $ | (16.20 | ) |
| Comprehensive      income:                                                                                      |   |                  |    |   |                  |   |   |                |   |   |   |   |
| Net      loss                                                                                                   |   | $                     | (15.5   | )      |                  | $      | (39.6  | )                   |   | $ | (314.3 | ) |
| Other      comprehensive income:                                                                                |   |                  |    |   |                  |   |   |                |   |   |   |   |
| Pension      and other postretirement benefit adjustments (net of deferred taxes of      $17.1, $15.6 and $1.4) |   |                  | 51.0    |   |                  |   | 27.1   |                |   |   | (3.1 | ) |
| Foreign      currency translation                                                                               |   |                  | 12.1    |   |                  |   | 40.2   |                |   |   | (76.9 | ) |
| Change      in fair market value of derivatives                                                                 |   |                  | 1.5     |   |                  |   | 4.8    |                |   |   | (5.8 | ) |
| Comprehensive      income (loss)                                                                                |   | $                     | 49.1    |   |                  | $      | 32.5   |                |   | $ | (400.1 | ) |

----

| For      the fiscal years ended:(in      millions, except per share data)                    |   | December      30,2007 |    |   | December      31,2006 |   |    | January      1,2006 |   |
|----------------------------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|---------------------|--------|
| Operating      activities:                                                                   |   |                  |    |   |                  |   |    |                |   |
| Net      loss                                                                                |   | $                     | (15.5   | )      |                  | $      | (39.6   | )                   |   | $ | (314.3 | ) |
| Adjustments      to reconcile net loss to net cash provided by operating      activities:    |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Depreciation      and amortization                                                           |   |                  | 53.4    |   |                  |   | 56.6    |                |   |   | 59.2 |   |
| Goodwill      impairment charge                                                              |   |                  | — |   |                  |   | 14.3    |                |   |   | 312.0 |   |
| Asset      impairment charge                                                                 |   |                  | — |   |                  |   | 27.9    |                |   |   | — |   |
| Deferred      income taxes                                                                   |   |                  | (6.2    | )      |                  |   | (7.9    | )                   |   |   | (11.4 | ) |
| Loss      on extinguishment of debt                                                          |   |                  | — |   |                  |   | 0.6     |                |   |   | 0.5 |   |
| Loss      (gain) on sale of property, plant and equipment                                    |   |                  | 4.1     |   |                  |   | (2.9    | )                   |   |   | (1.3 | ) |
| (Gain)      loss on divestitures                                                             |   |                  | (1.5    | )      |                  |   | (1.7    | )                   |   |   | 5.8 |   |
| Non-cash      pension expense                                                                |   |                  | 15.3    |   |                  |   | 20.6    |                |   |   | 13.6 |   |
| Changes      in operating assets and liabilities, net of acquisitions and      dispositions: |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Accounts      receivable, net                                                                |   |                  | 0.6     |   |                  |   | (10.6   | )                   |   |   | 0.8 |   |
| Inventories                                                                                  |   |                  | (5.5    | )      |                  |   | 0.7     |                |   |   | (6.1 | ) |
| Other      assets                                                                            |   |                  | (2.3    | )      |                  |   | 3.2     |                |   |   | 0.6 |   |
| Accounts      payable and accrued expenses                                                   |   |                  | (12.8   | )      |                  |   | (9.9    | )                   |   |   | 4.5 |   |
| Income      taxes payable                                                                    |   |                  | 6.1     |   |                  |   | (7.4    | )                   |   |   | 2.1 |   |
| Premium      paid for early extinguishment of debt                                           |   |                  | — |   |                  |   | (0.5    | )                   |   |   | (0.4 | ) |
| Contributions      to defined benefit pension plans                                          |   |                  | (19.2   | )      |                  |   | (23.8   | )                   |   |   | (21.4 | ) |
| Other                                                                                        |   |                  | 7.6     |   |                  |   | 2.1     |                |   |   | 0.4 |   |
| Net      cash provided by operating activities                                               |   |                  | 24.1    |   |                  |   | 21.7    |                |   |   | 44.6 |   |
|                                                                                         |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Investing      activities:                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Purchases      of property, plant and equipment                                              |   |                  | (49.6   | )      |                  |   | (35.8   | )                   |   |   | (38.3 | ) |
| Acquisitions                                                                                 |   |                  | — |   |                  |   | — |                |   |   | (78.4 | ) |
| Divestitures                                                                                 |   |                  | — |   |                  |   | 19.2    |                |   |   | — |   |
| Proceeds      from sales of property, plant and equipment                                    |   |                  | 4.1     |   |                  |   | 9.9     |                |   |   | 5.6 |   |
| Other                                                                                        |   |                  | — |   |                  |   | — |                |   |   | 0.5 |   |
| Net      cash used in investing activities                                                   |   |                  | (45.5   | )      |                  |   | (6.7    | )                   |   |   | (110.6 | ) |
|                                                                                         |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Financing      activities:                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Net      borrowings on credit lines                                                          |   |                  | 33.4    |   |                  |   | 22.5    |                |   |   | 116.5 |   |
| Payments      on long-term debt                                                              |   |                  | (2.2    | )      |                  |   | (23.5   | )                   |   |   | (81.2 | ) |
| Proceeds      from long-term debt                                                            |   |                  | — |   |                  |   | 3.6     |                |   |   | 3.3 |   |
| Debt      issuance costs                                                                     |   |                  | (0.3    | )      |                  |   | (0.9    | )                   |   |   | — |   |
| Dividends      paid                                                                          |   |                  | (8.5    | )      |                  |   | (17.1   | )                   |   |   | (17.1 | ) |
| Other                                                                                        |   |                  | 0.5     |   |                  |   | — |                |   |   | (0.1 | ) |
| Net      cash provided by (used in) financing activities                                     |   |                  | 22.9    |   |                  |   | (15.4   | )                   |   |   | 21.4 |   |
| Effect      of foreign exchange rate changes on cash and cash    equivalents                 |   |                  | 0.7     |   |                  |   | (0.5    | )                   |   |   | (1.0 | ) |
| Increase      (decrease) in cash and cash equivalents                                        |   |                  | 2.2     |   |                  |   | (0.9    | )                   |   |   | (45.6 | ) |
| Cash      and cash equivalents at beginning of year                                          |   |                  | 7.8     |   |                  |   | 8.7     |                |   |   | 54.3 |   |
| Cash      and cash equivalents at end of year                                                |   | $                     | 10.0    |   |                  | $      | 7.8     |                |   | $ | 8.7 |   |

----

| For      the fiscal years ended:(in      millions)                     |   | December      30,2007 |    |   | December      31,2006 |   |    | January      1,2006 |   |
|------------------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|---------|---------------------|--------|
| Common      stock:                                                     |   |                  |    |   |                  |   |    |                |   |
| Balance,      beginning of year                                        |   | $                     | 19.8    |   |                  | $      | 19.6    |                |   | $ | 19.6 |   |
| Issuance      from public stock offering                               |   |                  | — |   |                  |   | — |                |   |   | — |   |
| Issuance      for employee stock plans                                 |   |                  | 0.1     |   |                  |   | 0.2     |                |   |   | — |   |
| Balance,      end of year                                              |   |                  | 19.9    |   |                  |   | 19.8    |                |   |   | 19.6 |   |
|                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Additional      paid-in capital:                                       |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Balance,      beginning of year                                        |   |                  | 93.6    |   |                  |   | 96.6    |                |   |   | 96.1 |   |
| Issuance      for employee stock plans, net of forfeitures             |   |                  | 0.3     |   |                  |   | 0.2     |                |   |   | 0.5 |   |
| Elimination      of unearned compensation upon adoption of SFAS 123(R) |   |                  | — |   |                  |   | (3.9    | )                   |   |   | — |   |
| Compensation      expense                                              |   |                  | 0.3     |   |                  |   | 0.7     |                |   |   | — |   |
| Balance,      end of year                                              |   |                  | 94.2    |   |                  |   | 93.6    |                |   |   | 96.6 |   |
|                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Unearned      compensation:                                            |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Balance,      beginning of year                                        |   |                  | — |   |                  |   | (3.9    | )                   |   |   | (3.7 | ) |
| Compensation      expense                                              |   |                  | — |   |                  |   | — |                |   |   | 0.1 |   |
| Issuance      for employee stock plans, net of forfeitures             |   |                  | — |   |                  |   | — |                |   |   | (0.3 | ) |
| Elimination      of unearned compensation upon adoption of SFAS 123(R) |   |                  | — |   |                  |   | 3.9     |                |   |   | — |   |
| Balance,      end of year                                              |   |                  | — |   |                  |   | — |                |   |   | (3.9 | ) |
|                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Accumulated      other comprehensive (loss) income:                    |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Balance,      beginning of year                                        |   |                  | (16.7   | )      |                  |   | (10.9   | )                   |   |   | 74.9 |   |
| Foreign      currency translation                                      |   |                  | 12.1    |   |                  |   | 40.2    |                |   |   | (76.9 | ) |
| Pension      and other postretirement benefits adjustments             |   |                  | 51.0    |   |                  |   | 27.1    |                |   |   | (3.1 | ) |
| Change      in fair market value of derivatives                        |   |                  | 1.5     |   |                  |   | 4.8     |                |   |   | (5.8 | ) |
| Adoption      of FASB Statement No. 158                                |   |                  | — |   |                  |   | (77.9   | )                   |   |   | — |   |
| Balance,      end of year                                              |   |                  | 47.9    |   |                  |   | (16.7   | )                   |   |   | (10.9 | ) |
|                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Retained      earnings:                                                |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Balance,      beginning of year                                        |   |                  | 137.0   |   |                  |   | 193.9   |                |   |   | 525.3 |   |
| Net      loss                                                          |   |                  | (15.5   | )      |                  |   | (39.6   | )                   |   |   | (314.3 | ) |
| Cash      dividends declared                                           |   |                  | (4.1    | )      |                  |   | (17.3   | )                   |   |   | (17.1 | ) |
| Adoption      of FIN 48                                                |   |                  | 1.8     |   |                  |   | — |                |   |   | — |   |
| Balance,      end of year                                              |   |                  | 119.2   |   |                  |   | 137.0   |                |   |   | 193.9 |   |
|                                                                   |   |                  |    |   |                  |   |    |                |   |   |   |   |
| Stockholders’      equity, end of year                           |   | $                     | 281.2   |   |                  | $      | 233.7   |                |   | $ | 295.3 |   |

----

| 1   | Summary      of Significant Accounting Policies |
|---------------|-------------------------------------------------|

----

----

----

----

| 2   | Discontinued      Operations |
|---------------|------------------------------|

----

| (in      millions) |   | 12      Months Ended |   |
|--------------------|--------|----------------------|--------|
|               |   | 2007                 |   |   | 2006 |   |   | 2005 |   |
| Revenue            |   |                 | N/A    |   |   | $ | 16.7 |   |   | $ | 32.9 |   |
|               |   |                 |   |   |   |   |   |   |   |   |   |   |
| Pre-tax      loss  |   |                 | N/A    |   |   | $ | (4.4 | ) |   | $ | (5.2 | ) |

| 3   | (Gain)      Loss on Divestitures |
|---------------|----------------------------------|

----

| 4   | Goodwill      and Intangible Assets |
|---------------|-------------------------------------|

|   | (in      millions)                      |   | Paperboard      Packaging |    |   | Plastic      Packaging |   |    | Total  |   |
|--------|-----------------------------------------|--------|---------------------------|---------|--------|------------------------|--------|---------|--------|--------|
|   | Balance      January 1, 2006            |   | $                         | 283.1   |   |                   | $      | 70.9    |   |   | $ | 354.0 |   |
|   | Goodwill purchase price      adjustment |   |                      | (0.7    | )      |                   |   | — |   |   |   | (0.7 | ) |
|   | Divestiture                             |   |                      | — |   |                   |   | (5.6    | )      |   |   | (5.6 | ) |
|   | Impairment loss                         |   |                      | (14.3   | )      |                   |   | — |   |   |   | (14.3 | ) |
|   | Foreign currency      translation       |   |                      | 38.5    |   |                   |   | 9.3     |   |   |   | 47.8 |   |
|   | Balance      December 31, 2006          |   |                      | 306.6   |   |                   |   | 74.6    |   |   |   | 381.2 |   |
|   | Foreign currency      translation       |   |                      | 4.9     |   |                   |   | 1.3     |   |   |   | 6.2 |   |
|   | Balance      December 30, 2007          |   | $                         | 311.5   |   |                   | $      | 75.9    |   |   | $ | 387.4 |   |

| 2008 | $1.6 |
|------|------|
| 2009 | 1.6  |
| 2010 | 1.6  |
| 2011 | 1.6  |
| 2012 | 1.6  |

| 5   | Restructuring      Charges |
|---------------|----------------------------|

----

|   |                                                                                                                 |   | 12      Months Ended |   |
|--------|----------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|   | (in      millions)                                                                                                   |   | Dec.      30, 2007   |   |   | Dec.      31, 2006 |   |   | Jan.      1, 2006 |   |
|   |                                                                                                                 |   |                 |   |   |   |   |   |   |   |
|   | Employee-related      costs                                                                                          |   | $                    | 10.3   |   |   | $ | 9.8 |   |   | $ | 12.2 |   |
|   | Asset      impairment                                                                                                |   |                 | 0.3    |   |   |   | 27.9 |   |   |   | — |   |
|   | Loss      on asset sales, redeployment costs, and other      exit   costs                             |   |                 | 5.0    |   |   |   | (0.3 | ) |   |   | 0.9 |   |
|   | Total      restructuring expenses, asset impairment and other exit    costs                                          |   |                 | 15.6   |   |   |   | 37.4 |   |   |   | 13.1 |   |
|   | Less:      Restructuring expenses, asset impairments and other exit costs attributed      to discontinued operations |   |                 | (0.2   | ) |   |   | 4.0 |   |   |   | 2.4 |   |
|   | Restructuring      expenses, asset impairments and other exit costs attributed to continuing      operations         |   | $                    | 15.8   |   |   | $ | 33.4 |   |   | $ | 10.7 |   |

----

|   | (in      millions)                                                                                        |   | Employee-related      Costs |    |   | Asset      Impairments |   |    | Other      Exit Costs |   |   | Total   |   |
|--------|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|------------------------|--------|---------|-----------------------|--------|--------|---------|--------|
|   | Balance      January 1, 2006                                                                              |   | $                           | 6.9     |   |                   | $      | — |                  |   | $      | — |   |   | $ | 6.9 |   |
|   | Restructuring      charges, asset impairments and other exit costs (benefits), continuing      operations |   |                        | 9.0     |   |                   |   | 24.9    |                  |   |   | (0.5    | )      |   |   | 33.4 |   |
|   | Restructuring      charges, asset impairments and other exit costs, discontinued      operations          |   |                        | 0.8     |   |                   |   | 3.0     |                  |   |   | 0.2     |   |   |   | 4.0 |   |
|   | Cash payments                                                                                             |   |                        | (14.7   | )      |                   |   | — |                  |   |   | (1.6    | )      |   |   | (16.3 | ) |
|   | Asset    impairments                                                                                      |   |                        | — |   |                   |   | (27.9   | )                     |   |   | — |   |   |   | (27.9 | ) |
|   | Gain on asset    sales                                                                                    |   |                        | — |   |                   |   | — |                  |   |   | 2.4     |   |   |   | 2.4 |   |
|   | Other items – non      cash                                                                         |   |                        | 0.5     |   |                   |   | — |                  |   |   | — |   |   |   | 0.5 |   |
|   | Balance      December 31, 2006                                                                            |   |                        | 2.5     |   |                   |   | — |                  |   |   | 0.5     |   |   |   | 3.0 |   |
|   | Restructuring      charges, asset impairments and other exit costs, continuing      operations            |   |                        | 10.5    |   |                   |   | 0.3     |                  |   |   | 5.0     |   |   |   | 15.8 |   |
|   | Restructuring      charges, asset impairments and other exit benefits, discontinued      operations       |   |                        | (0.2    | )      |                   |   | — |                  |   |   | — |   |   |   | (0.2 | ) |
|   | Cash payments                                                                                             |   |                        | (10.3   | )      |                   |   | — |                  |   |   | (1.1    | )      |   |   | (11.4 | ) |
|   | Asset    impairments                                                                                      |   |                        | — |   |                   |   | (0.3    | )                     |   |   | — |   |   |   | (0.3 | ) |

|        | (Loss) on asset      sales        |   |   | — |   |   |   | — |   |   |   | (4.7 | )      |   |   | (4.7 | )      |
|--------|-----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|------|--------|--------|--------|------|--------|
|   | Other items – non      cash |   |   | 0.2     |   |   |   | — |   |   |   | 0.4  |   |   |   | 0.6  |   |
|   | Balance      December 30, 2007    |   | $      | 2.7     |   |   | $      | — |   |   | $      | 0.1  |   |   | $      | 2.8  |   |

----

| 6   | Inventories |
|---------------|-------------|

|   | (in      millions)          |   | 2007   |   |   | 2006   |   |
|--------|-----------------------------|--------|--------|--------|--------|--------|--------|
|   | Finished      goods         |   | $      | 70.4   |   |   | $      | 59.5 |   |
|   | Work-in-process             |   |   | 17.1   |   |   |   | 21.3 |   |
|   | Materials      and supplies |   |   | 33.9   |   |   |   | 28.6 |   |
|   | Total                       |   | $      | 121.4  |   |   | $      | 109.4 |   |

| 7   | Long-Term      Debt |
|---------------|---------------------|

|   | (in      millions)                               |   | 2007   |   |   | 2006   |   |
|--------|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Notes      payable – banks:                |   |   |   |   |   |   |
|   | Credit      lines                                |   | $      | 170.4  |   |   | $      | 138.6 |   |
|   | Unsecured      notes:                            |   |   |   |   |   |   |   |   |
|   | 10.375%      Senior Subordinated Notes, due 2011 |   |   | 133.7  |   |   |   | 131.4 |   |
|   | 7%      Senior Subordinated Notes, due 2014      |   |   | 147.1  |   |   |   | 132.0 |   |
|   | IDA      notes, average interest 6.3%, due 2019  |   |   | 50.0   |   |   |   | 50.0 |   |
|   | Other      debt, average interest 5.2%           |   |   | 14.1   |   |   |   | 15.8 |   |
|   | Total      debt                                  |   |   | 515.3  |   |   |   | 467.8 |   |
|   | Less      current portion                        |   |   | 6.9    |   |   |   | 11.8 |   |
|   | Total      long-term debt                        |   | $      | 508.4  |   |   | $      | 456.0 |   |

----

----

| 8   | Financial      Instruments and Risk Concentration |
|---------------|---------------------------------------------------|

| 9   | Income      Taxes |
|---------------|-------------------|

|   | (in      millions)               |   | 2007   |   |   | 2006   |   |    | 2005   |   |
|--------|----------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|   | Current      (benefit) expense:  |   |   |   |   |   |   |    |   |   |
|   | Federal                          |   | $      | (3.5   | )      |   | $      | (2.7    | )      |   | $ | (2.1 | ) |
|   | State                            |   |   | 0.1    |   |   |   | — |   |   |   | (0.8 | ) |
|   | Foreign                          |   |   | 5.5    |   |   |   | 2.9     |   |   |   | 9.9 |   |
|   | Total current                    |   | $      | 2.1    |   |   | $      | 0.2     |   |   | $ | 7.0 |   |
|   | Deferred      expense (benefit): |   |   |   |   |   |   |    |   |   |   |   |   |
|   | Federal                          |   | $      | 2.4    |   |   | $      | 2.8     |   |   | $ | (2.8 | ) |
|   | State                            |   |   | 0.1    |   |   |   | (0.2    | )      |   |   | (0.4 | ) |
|   | Foreign                          |   |   | (8.7   | )      |   |   | (10.5   | )      |   |   | (8.2 | ) |
|   | Total deferred                   |   | $      | (6.2   | )      |   | $      | (7.9    | )      |   | $ | (11.4 | ) |
|   |                             |   |   |   |   |   |   |    |   |   |   |   |   |
|   | Total incometaxes                |   | $      | (4.1   | )      |   | $      | (7.7    | )      |   | $ | (4.4 | ) |

----

|   | (in      millions)                                                     |   | 2007   |   |   | 2006   |   |
|--------|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   |                                                                   |   |   |   |   |   |   |
|   | Pension      accrual                                                   |   | $      | 1.3    |   |   | $      | 27.7 |   |
|   | Accrued      liabilities                                               |   |   | 7.3    |   |   |   | 8.4 |   |
|   | Tax      credit and net operating loss carryforward benefits           |   |   | 52.1   |   |   |   | 34.7 |   |
|   | Deferred      income                                                   |   |   | 1.1    |   |   |   | 1.4 |   |
|   | Other                                                                  |   |   | 0.2    |   |   |   | 0.4 |   |
|   | Total deferred tax      assets                                         |   |   | 62.0   |   |   |   | 72.6 |   |
|   | Valuation      allowance                                               |   |   | (47.0  | )      |   |   | (42.6 | ) |
|   |        Net      deferred tax assets |   |   | 15.0   |   |   |   | 30.0 |   |
|   |                                                                   |   |   |   |   |   |   |   |   |
|   | Accumulated      depreciation/amortization                             |   |   | (32.4  | )      |   |   | (30.8 | ) |
|   | Other                                                                  |   |   | (0.1   | )      |   |   | (0.1 | ) |
|   | Deferred tax      liabilities                                          |   |   | (32.5  | )      |   |   | (30.9 | ) |
|   | Net deferred tax      liabilities                                      |   | $      | (17.5  | )      |   | $      | (0.9 | ) |

|   | Balance      sheet presentation:                                                                         |   |   |   |   |   |   |
|--------|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Current      deferred income tax assets (included within prepaid expenses and other      current assets) |   | $      | 0.9    |   |   | $      | 0.4 |   |
|   | Deferred      income tax assets (included within other assets)                                           |   |   | 25.4   |   |   |   | 8.3 |   |
|   | Deferred      income tax liabilities                                                                     |   |   | (43.8  | )      |   |   | (9.6 | ) |
|   |                                                                                                     |   |   |   |   |   |   |   |   |

|   |                                                     |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|--------|----------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|   | (in      millions, except percentages)                   |   |   |    |   |   |   |    |   |   |
|   | Loss      from continuing operations before income taxes |   | $      | (17.9   | )      |   | $      | (40.1   | )      |   | $ | (311.1 | ) |
|   | Tax      benefit at U.S. statutory rate of 35%           |   |   | (6.3    | )      |   |   | (14.0   | )      |   |   | (108.9 | ) |
|   | State      income taxes, net of federal benefit          |   |   | (0.7    | )      |   |   | (1.0    | )      |   |   | (1.1 | ) |
|   | Foreign      income taxes rate differential              |   |   | (2.5    | )      |   |   | (3.5    | )      |   |   | (4.8 | ) |
|   | Non-deductible      goodwill                             |   |   | — |   |   |   | 5.0     |   |   |   | 105.0 |   |
|   | Valuation      allowances                                |   |   | 2.5     |   |   |   | 15.1    |   |   |   | 7.5 |   |
|   | Tax      audit settlements and tax return adjustments    |   |   | (3.3    | )      |   |   | (3.5    | )      |   |   | (2.1 | ) |
|   | Tax      rate adjustments                                |   |   | (1.1    | )      |   |   | — |   |   |   | — |   |
|   | Tax/book      basis differences                          |   |   | 6.7     |   |   |   | (5.7    | )      |   |   | — |   |
|   | Other      permanent items                               |   |   | 0.6     |   |   |   | (0.1    | )      |   |   | — |   |
|   | Total      tax benefit                                   |   | $      | (4.1    | )      |   | $      | (7.7    | )      |   | $ | (4.4 | ) |
|   |                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
|   | Effective      income tax rate                           |   |   | 22.9    | %      |   |   | 19.2    | %      |   |   | 1.4 | % |

----

|   | (in      millions)                                       |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|--------|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                     |   |   |   |   |   |   |   |   |   |
|   | Domestic                                                 |   | $      | (17.8  | )      |   | $      | (16.0  | )      |   | $ | (36.0 | ) |
|   | Foreign                                                  |   |   | (0.1   | )      |   |   | (24.1  | )      |   |   | (275.1 | ) |
|   |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Loss      from continuing operations before income taxes |   | $      | (17.9  | )      |   | $      | (40.1  | )      |   | $ | (311.1 | ) |

|   | (in      millions)                                    |   |   |    |
|--------|-------------------------------------------------------|--------|--------|---------|
|   | Balance      at January 1, 2007                       |   | $      | 26.2    |   |
|   | Gross      increases – Current period           |   |   | 2.6     |   |
|   | Gross      decreases – Current period           |   |   | — |   |
|   | Decreases      - Settlements                          |   |   | — |   |
|   | Reductions      – Statute of Limitations        |   |   | (0.3    | ) |
|   | Unrecognized      tax benefits – Ending Balance |   | $      | 28.5    |   |

| 10   | Employee      Retirement and PostretirementBenefits |
|----------------|-----------------------------------------------------|

----

|                                               |   | Pre-SFAS      158 |   |   | SFAS      158 Adoption Adjustments |   |   | Post-SFAS      158 |   |
|----------------------------------------------------|--------|-------------------|--------|--------|------------------------------------|--------|--------|--------------------|--------|
| (in      millions)                                 |   |              |   |   |                               |   |   |               |   |
| Assets                                             |   |              |   |   |                               |   |   |               |   |
| Prepaid      expenses and other current assets     |   | $                 | 21.7   |   |                               | $      | (1.3   | )                  |   | $ | 20.4 |   |
| Other      assets                                  |   |              | 114.0  |   |                               |   | (21.4  | )                  |   |   | 92.6 |   |
| Liabilities                                        |   |              |   |   |                               |   |   |               |   |   |   |   |
| Accrued      expenses                              |   |              | 82.9   |   |                               |   | 1.0    |               |   |   | 83.9 |   |
| Pension      and postretirement benefits           |   |              | 25.1   |   |                               |   | 77.6   |               |   |   | 102.7 |   |
| Deferred      income taxes                         |   |              | 33.0   |   |                               |   | (23.4  | )                  |   |   | 9.6 |   |
| Stockholders’      Equity                    |   |              |   |   |                               |   |   |               |   |   |   |   |
| Accumulated      other comprehensive income (loss) |   |              | 61.2   |   |                               |   | (77.9  | )                  |   |   | (16.7 | ) |

|                      |   | Pension |   |   | Postretirement |   |   | Total  |   |
|---------------------------|--------|---------|--------|--------|----------------|--------|--------|--------|--------|
| (in      millions)        |   |    |   |   |           |   |   |   |   |
| Prior      service credit |   | $       | (0.3   | )      |           | $      | (0.4   | )      |   | $ | (0.7 | ) |
| Net      loss             |   |    | 4.8    |   |           |   | 0.9    |   |   |   | 5.7 |   |

----

|                                                |   |                  |    |   |                     |   |    |   |   |   |   |   |   | Postretirement      Benefits |   |
|-----------------------------------------------------|--------|-----------------------|---------|--------|--------------------------|--------|---------|--------|--------|--------|--------|--------|--------|------------------------------|--------|
|                                                |   | Pension      Benefits |    |   | Other      Than Pensions |   |
|                                                |   | U.S.      Plans       |    |   | Non      U.S. Plans      |   |    |   |   |
| (in      millions)                                  |   | 2007                  |    |   | 2006                     |   |    | 2007   |   |   | 2006   |   |   | 2007                         |   |   | 2006 |   |
| Benefit      obligation at beginning of year        |   | $                     | 69.7    |   |                     | $      | 71.7    |   |   | $      | 450.6  |   |   | $                            | 409.6  |   |   | $ | 14.9 |   |   | $ | 14.3 |   |
| Service      cost                                   |   |                  | 0.1     |   |                     |   | 0.2     |   |   |   | 6.5    |   |   |                         | 7.2    |   |   |   | — |   |   |   | — |   |
| Interest      cost                                  |   |                  | 3.9     |   |                     |   | 3.9     |   |   |   | 22.4   |   |   |                         | 21.6   |   |   |   | 0.7 |   |   |   | 0.7 |   |
| Plan      participants’ contributions         |   |                  | — |   |                     |   | — |   |   |   | 4.7    |   |   |                         | 5.0    |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Actuarial      (gain) loss                          |   |                  | (3.8    | )      |                     |   | (1.4    | )      |   |   | (44.6  | )      |   |                         | (34.3  | ) |   |   | (0.6 | ) |   |   | 2.9 |   |
| Exchange      rate changes/other                    |   |                  | — |   |                     |   | — |   |   |   | 21.9   |   |   |                         | 56.6   |   |   |   | — |   |   |   | — |   |
| Benefits      paid                                  |   |                  | (4.7    | )      |                     |   | (4.7    | )      |   |   | (14.8  | )      |   |                         | (15.1  | ) |   |   | (2.1 | ) |   |   | (3.2 | ) |
|                                                |   |                  |    |   |                     |   |    |   |   |   |   |   |   |                         |   |   |   |   |   |   |   |   |   |   |
| Benefit      obligation at end of year              |   | $                     | 65.2    |   |                     | $      | 69.7    |   |   | $      | 446.7  |   |   | $                            | 450.6  |   |   | $ | 13.1 |   |   | $ | 14.9 |   |
|                                                |   |                  |    |   |                     |   |    |   |   |   |   |   |   |                         |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year |   |                  | 63.5    |   |                     |   | 61.6    |   |   |   | 376.1  |   |   |                         | 281.1  |   |   |   | — |   |   |   | — |   |
| Actual      return on plan assets                   |   |                  | 9.3     |   |                     |   | 5.1     |   |   |   | 33.4   |   |   |                         | 37.9   |   |   |   | — |   |   |   | — |   |
| Employer      contributions                         |   |                  | 0.9     |   |                     |   | 1.5     |   |   |   | 18.3   |   |   |                         | 23.2   |   |   |   | 1.9 |   |   |   | 3.0 |   |
| Plan      participants’ contributions         |   |                  | — |   |                     |   | — |   |   |   | 4.7    |   |   |                         | 5.0    |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Exchange      rate changes/other                    |   |                  | — |   |                     |   | — |   |   |   | 20.2   |   |   |                         | 44.0   |   |   |   | — |   |   |   | — |   |
| Benefits      paid                                  |   |                  | (4.7    | )      |                     |   | (4.7    | )      |   |   | (14.8  | )      |   |                         | (15.1  | ) |   |   | (2.1 | ) |   |   | (3.2 | ) |
|                                                |   |                  |    |   |                     |   |    |   |   |   |   |   |   |                         |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at end of year       |   | $                     | 69.0    |   |                     | $      | 63.5    |   |   | $      | 437.9  |   |   | $                            | 376.1  |   |   | $ | — |   |   | $ | — |   |
| Funded      status at end of year                   |   | $                     | 3.8     |   |                     | $      | (6.2    | )      |   | $      | (8.8   | )      |   | $                            | (74.5  | ) |   | $ | (13.1 | ) |   | $ | (14.9 | ) |

|                         |   |                  |   |   |                     |   |   |   |   |   |   |   |   | Postretirement      Benefits |   |
|------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------------------------|--------|
|                         |   | Pension      Benefits |   |   | Other      Than Pensions |   |
|                         |   | U.S.      Plans       |   |   | Non      U.S. Plans      |   |   |   |   |
| (in      millions)           |   | 2007                  |   |   | 2006                     |   |   | 2007   |   |   | 2006   |   |   | 2007                         |   |   | 2006 |   |
| Net      loss                |   | $                     | 23.0   |   |                     | $      | 31.5   |   |   | $      | 58.8   |   |   | $                            | 117.8  |   |   | $ | 10.9 |   |   | $ | 7.7 |   |
| Prior      service cost      |   |                  | (1.0   | )      |                     |   | 0.5    |   |   |   | (0.3   | )      |   |                         | (0.4   | ) |   |   | (4.0 | ) |   |   | — |   |
| Total      amount recognized |   | $                     | 22.0   |   |                     | $      | 32.0   |   |   | $      | 58.5   |   |   | $                            | 117.4  |   |   | $ | 6.9 |   |   | $ | 7.7 |   |

|                                        |   |                  |   |   |                     |   |   |   |   |   |   |   |   | Postretirement      Benefits |   |
|---------------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------------------------|--------|
|                                        |   | Pension      Benefits |   |   | Other      Than Pensions |   |
|                                        |   | U.S.      Plans       |   |   | Non      U.S. Plans      |   |   |   |   |
| (in      millions)                          |   | 2007                  |   |   | 2006                     |   |   | 2007   |   |   | 2006   |   |   | 2007                         |   |   | 2006 |   |
| Prepaid      benefit cost                   |   | $                     | 12.4   |   |                     | $      | 5.9    |   |   | $      | 8.7    |   |   | $                            | 1.6    |   |   | $ | — |   |   | $ | — |   |
| Accrued      benefit liability              |   |                  | (8.6   | )      |                     |   | (12.1  | )      |   |   | (17.6  | )      |   |                         | (76.1  | ) |   |   | (13.1 | ) |   |   | (14.9 | ) |
| Accumulated      other comprehensive income |   |                  | 22.0   |   |                     |   | 32.0   |   |   |   | 58.5   |   |   |                         | 117.4  |   |   |   | 6.9 |   |   |   | 7.7 |   |
|                                        |   |                  |   |   |                     |   |   |   |   |   |   |   |   |                         |   |   |   |   |   |   |   |   |   |   |
| Net      amount recognized                  |   | $                     | 25.8   |   |                     | $      | 25.8   |   |   | $      | 49.6   |   |   | $                            | 42.9   |   |   | $ | (6.2 | ) |   | $ | (7.2 | ) |

|                                                                                                         |   |   |    |   |   |   |   |   |   |   |    |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Pension      plans in which accumulated benefit obligation exceeds plan assets at the      measurement date: |   |   |    |   |   |   |   |   |   |   |    |   |
| Projected      benefit obligation                                                                            |   | $      | 8.6     |   |   | $      | 19.2   |   |   | $      | 7.3     |   |   | $ | 396.1 |   |
| Accumulated      benefit obligation                                                                          |   |   | 8.6     |   |   |   | 16.6   |   |   |   | 6.9     |   |   |   | 338.3 |   |
| Fair      value of plan assets                                                                               |   | $      | — |   |   | $      | 7.1    |   |   | $      | — |   |   | $ | 322.9 |   |

----

|                               |   |                  |   |   |                     |   |   |   |   |   |   |   |   | Postretirement      Benefits |   |
|------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------------------------|--------|
|                               |   | Pension      Benefits |   |   | Other      Than Pensions |   |
|                               |   | U.S.      Plans       |   |   | Non      U.S. Plans      |   |   |   |   |
|                               |   | 2007                  |   |   | 2006                     |   |   | 2007   |   |   | 2006   |   |   | 2007                         |   |   | 2006 |   |
| Discount      rate                 |   |                  | 6.25   | %      |                     |   | 5.88   | %      |   |   | 5.80   | %      |   |                         | 5.00   | % |   |   | 6.25 | % |   |   | 5.88 | % |
| Rate      of compensation increase |   |                  | 4.50   | %      |                     |   | 4.50   | %      |   |   | 3.90   | %      |   |                         | 3.50   | % |   |   | 4.50 | % |   |   | 4.50 | % |

|                    |   | Pension      Benefits |
|-------------------------|--------|-----------------------|
|                    |   | U.S.      Plans       |   | Non      U.S. Plans |
|                    |   | 2007                  |   | 2006 |   | 2007 |   | 2006 |
| Equity      securities* |   |                  | 68 | % |   |   | 66 | % |   |   | 52 | % |   |   | 65 | % |
| Debt      securities*   |   |                  | 32 |   |   |   | 33 |   |   |   | 44 |   |   |   | 34 |   |
| Other                   |   |                  | — |   |   |   | 1 |   |   |   | 4 |   |   |   | 1 |   |
| Total                   |   |                  | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

| * | Plan      assets were not invested in Chesapeake securities during 2007 or      2006. |
|---|---------------------------------------------------------------------------------------|

----

|                                                       |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Postretirement      Benefits |   |
|------------------------------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------------------------|--------|
|                                                       |   | Pension      Benefits |   |   | Other      Than Pensions |   |
|                                                       |   | U.S.      Plans       |   |   | Non      U.S. Plans      |   |   |   |   |   |   |   |   |   |   |
| (dollars      in millions)                                 |   | 2007                  |   |   | 2006                     |   |   | 2005   |   |   | 2007   |   |   | 2006   |   |   | 2005   |   |   | 2007                         |   |   | 2006 |   |   | 2005 |   |
| Service      cost                                          |   | $                     | 0.1    |   |                     | $      | 0.2    |   |   | $      | 0.5    |   |   | $      | 6.5    |   |   | $      | 7.2    |                         |   | $ | 5.7 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
|                                                       |   |                  |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      cost                                         |   |                  | 3.9    |   |                     |   | 3.9    |   |   |   | 3.8    |   |   |   | 22.4   |   |   |   | 21.6   |                         |   |   | 19.2 |   |   |   | 0.8 |   |   |   | 0.8 |   |   |   | 0.9 |   |
| Expected      return on plan assets                        |   |                  | (4.6   | )      |                     |   | (4.5   | )      |   |   | (4.9   | )      |   |   | (23.2  | )      |   |   | (20.9  | )                            |   |   | (19.9 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Amortization      of prior service cost and actuarial loss |   |                  | 1.3    |   |                     |   | 1.7    |   |   |   | 2.2    |   |   |   | 7.7    |   |   |   | 10.4   |                         |   |   | 5.7 |   |   |   | 0.4 |   |   |   | 0.3 |   |   |   | 0.4 |   |
| Net      expense                                           |   | $                     | 0.7    |   |                     | $      | 1.3    |   |   | $      | 1.6    |   |   | $      | 13.4   |   |   | $      | 18.3   |                         |   | $ | 10.7 |   |   | $ | 1.2 |   |   | $ | 1.1 |   |   | $ | 1.3 |   |
| Discount      rate                                         |   |                  | 5.88   | %      |                     |   | 5.50   | %      |   |   | 5.88   | %      |   |   | 5.00   | %      |   |   | 5.00   | %                            |   |   | 5.60 | % |   |   | 5.88 | % |   |   | 5.50 | % |   |   | 5.88 | % |
| Expected      return on plan assets                        |   |                  | 8.00   | %      |                     |   | 8.00   | %      |   |   | 8.25   | %      |   |   | 6.60   | %      |   |   | 6.90   | %                            |   |   | 7.40 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
| Rate      of compensation increase                         |   |                  | 4.50   | %      |                     |   | 4.50   | %      |   |   | 4.50   | %      |   |   | 3.50   | %      |   |   | 3.90   | %                            |   |   | 3.90 | % |   |   | 4.50 | % |   |   | 4.50 | % |   |   | 4.50 | % |

|                                                                                                            |   | Pension      Benefits |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|
| (in      millions)                                                                                              |   | 2007                  |   |   | 2006 |   |   | 2005 |   |
| Decrease      (increase) in minimum pension liability included in other comprehensive      income, net of taxes |   |                  | N/A    |   |   | $ | 27.1 |   |   | $ | (3.1 | ) |

|                 |    | Pension      Plans |   | OtherBenefits      |
|----------------------|---------|--------------------|--------|--------------------|
| (in      millions)   |    | U.S.      Plans    |   | NonU.S.      Plans |   |   |
| 2008                 | $  |  4.7          |   | $                  | 16.0 |   |   | $ | 1.3 |   |
| 2009                 |    | 4.6                |   |               | 17.2 |   |   |   | 1.2 |   |
| 2010                 |    | 4.5                |   |               | 17.4 |   |   |   | 1.1 |   |
| 2011                 |    | 4.6                |   |               | 18.0 |   |   |   | 1.1 |   |
| 2012                 |    | 4.7                |   |               | 18.9 |   |   |   | 1.0 |   |
| Years      2013-2017 |    | 23.5               |   |               | 97.2 |   |   |   | 4.0 |   |

----

|                                                                                        |   | 2007   |   |   | 2006   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Healthcare      cost trend rate assumed for next year                                       |   |   | 8      | %      |   |   | 9 | % |
| Rate      to which the cost trend rate is assumed to decline (the ultimate trend      rate) |   |   | 5      | %      |   |   | 5 | % |
| Year      that the rate reaches the ultimate trend rate                                     |   | 2011   |   |   | 2011   |   |

| (in      millions)                                |   | OnePercentIncrease |    |   | OnePercentDecrease |   |
|---------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
| Effect      on total of service and interest cost |   | $                  | — |   |               | $      | — |   |
| Effect      on postretirement benefit obligation  |   | $                  | 0.3     |   |               | $      | (0.3 | ) |

| 11   | Stockholders’      Equity |
|----------------|---------------------------------|

----

| 12   | Stock      Option and Award Plans |
|----------------|-----------------------------------|

|   |                                                      | 2007          |   | 2006   |   | 2005          |
|--------|-----------------------------------------------------------|---------------|--------|--------|--------|---------------|
|   | Weighted-average      fair value of options at grant date |        $ | $3.86  |   |   |        $ | $4.85 |   |   |        $ | $6.51 |   |
|   | Dividend      yield                                       |          | 5.3    | %      |   |          | 6.0 | % |   |   | 4.1 | % |
|   | Risk-free      interest rates                             |          | 4.7    | %      |   |          | 4.7 | % |   |   | 4.1 | % |
|   | Volatility                                                |          | 34.7   | %      |   |          | 57.4 | % |   |   | 44.6 | % |
|   | Expected      option term (years)                         |          | 6.0    |   |   |          | 5.8 |   |   |   | 5.0 |   |

----

|                               |   |              Number of            Stock            Options |      |   | Weighted-AverageExercisePrice |   |   | Weighted-Average      Remaining Contractual Term (Years) |   |   | Aggregate      Intrinsic Value |   |
|------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|-------------------------------|--------|--------|----------------------------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding      December 31, 2006 |   |                                                                                                                                                 | 1,399,573 |   |                          | $      | 26.93  |                                                     |   |   | 3.8                            |   |   |   |   |
| Granted                            |   |                                                                                                                                                 | 87,900    |   |                          |   | 16.50  |                                                     |   |   | 10.0                           |   |   |   |   |
| Exercised                          |   |                                                                                                                                                 | --        |   |                          |   | --     |                                                     |   |   | --                             |   |   |   |   |
| Forfeited/expired                  |   |                                                                                                                                                 | (181,243  | )      |                          |   | 31.19  |                                                     |   |   | --                             |   |   |   |   |
|                               |   |                                                                                                                                                 |      |   |                          |   |   |                                                     |   |   |                           |   |   |   |   |
| Outstanding      December 30, 2007 |   |                                                                                                                                                 | 1,306,230 |   |                          |   | 25.83  |                                                     |   |   | 3.4                            |   |   |   | -- |   |
|                               |   |                                                                                                                                                 |      |   |                          |   |   |                                                     |   |   |                           |   |   |   |   |   |
| Exercisable      December 30, 2007 |   |                                                                                                                                                 | 1,157,581 |   |                          |   | 27.03  |                                                     |   |   | 2.7                            |   |   |   | -- |   |
|                               |   |                                                                                                                                                 |      |   |                          |   |   |                                                     |   |   |                           |   |   |   |   |   |

|                          | Options      Outstanding | Options      Exercisable                                    |
|-------------------------------|--------------------------|-------------------------------------------------------------|
| Range      of Exercise Prices | NumberOutstanding        | Weighted      -AverageRemainingContractualLife      (Years) | Weighted -AverageExercise Price | NumberExercisable | Weighted -AverageExercise Price |
|                          |                     |                                                        |   |   |   |
| $14.60      - $19.22          | 229,619                  | 7.5                                                         | $15.86 | 97,520 | $16.23 |
| $19.23      - $23.07          | 211,168                  | 4.0                                                         | $21.93 | 194,618 | $21.95 |
| $23.08      - $26.91          | 142,223                  | 4.1                                                         | $25.45 | 142,223 | $25.45 |
| $26.92      - $30.76          | 605,967                  | 2.0                                                         | $28.58 | 605,967 | $28.58 |
| $30.77      - $34.60          | 5,000                    | 1.8                                                         | $31.78 | 5,000 | $31.78 |
| $34.61      - $38.45          | 112,253                  | 0.6                                                         | $37.97 | 112,253 | $37.97 |
|                          | 1,306,230                |                                                        |   | 1,157,581 |   |

----

| (in      millions, except per share data)                                                         |   | 2005   |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|
| Stock-based      compensation expense, net of tax, included in net (loss) income as      reported |   | $      | 0.1    |   |
| Net      (loss) income as reported                                                                |   |   | (314.3 | ) |
| Pro      forma stock-based compensation expense, net of tax                                       |   |   | 0.6    |   |
| Pro      forma net (loss) income                                                                  |   |   | (314.9 | ) |
| (Loss)      earnings per share                                                                    |   |   |   |   |
| As      reported:                                                                                 |   |   |   |   |
| Basic                                                                                             |   | $      | (16.20 | ) |
| Diluted                                                                                           |   |   | (16.20 | ) |
| Pro      forma:                                                                                   |   |   |   |   |
| Basic                                                                                             |   | $      | (16.23 | ) |
| Diluted                                                                                           |   |   | (16.23 | ) |

|                                         |   | Shares |     |   | Weighted-Average      GrantDate      Value |   |
|----------------------------------------------|--------|--------|----------|--------|--------------------------------------------|--------|
|                                         |   |   |     |   |                                       |   |
| Outstanding      grants at December 31, 2006 |   |   | 382,550  |   |                                       |   | $21.98 |   |
| New      shares granted                      |   |   | 196,100  |   |                                       |   | 16.50 |   |
| Shares      forfeited                        |   |   | (167,066 | )      |                                       |   | 22.77 |   |
| Shares      vested                           |   |   | (600     | )      |                                       |   | 19.64 |   |
| Outstanding      grants at December 30, 2007 |   |   | 410,984  |   |                                       |   | $19.05 |   |

----

| 13   | Supplemental      Balance Sheet and Cash FlowInformation |
|----------------|----------------------------------------------------------|

| (in      millions)                                                      |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued      expenses:                                                  |   |   |   |   |   |   |
| Compensation      and employee benefits                                 |   | $      | 28.2   |   |   | $      | 28.2 |   |
| Short-term      portion of environmental liability                      |   |   | 16.2   |   |   |   | 9.9 |   |
| Fixed      asset purchases                                              |   |   | 12.4   |   |   |   | 12.6 |   |
| Restructuring                                                           |   |   | 2.8    |   |   |   | 3.0 |   |
| Interest                                                                |   |   | 4.7    |   |   |   | 5.5 |   |
| Accrued      other taxes                                                |   |   | 4.8    |   |   |   | 6.4 |   |
| Sales      rebates                                                      |   |   | 3.7    |   |   |   | 4.4 |   |
| Government      Grants                                                  |   |   | 4.8    |   |   |   | 5.5 |   |
| Other                                                                   |   |   | 3.8    |   |   |   | 8.4 |   |
| Total                                                                   |   | $      | 81.4   |   |   | $      | 83.9 |   |
|                                                                    |   |   |   |   |   |   |   |   |
| Accumulated      other comprehensive income (loss):                     |   |   |   |   |   |   |   |   |
| Foreign      currency translation                                       |   | $      | 108.3  |   |   | $      | 96.2 |   |
| Pension      and other postretirement benefits adjustments, net oftaxes |   |   | (66.9  | )      |   |   | (117.9 | ) |
| Fair      market value of derivatives, net of tax                       |   |   | 6.5    |   |   |   | 5.0 |   |
| Total                                                                   |   | $      | 47.9   |   |   | $      | (16.7 | ) |

| (in      millions)                                                                                                                                                         |   | 2007   |    |   | 2006   |   |   | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |
| Cash      paid for:                                                                                                                                                        |   |   |    |   |   |   |   |   |   |
| Interest      (net of amounts capitalized)                                                                                                                                 |   | $      | 44.1    |   |   | $      | 38.9   |   |   | $ | 33.1 |   |
| Income      taxes                                                                                                                                                          |   |   | (1.3    | )      |   |   | 4.6    |   |   |   | 13.1 |   |
| Supplemental      investing and financing non-cash transactions:Issuance      of common stock for long-term incentive and employee benefit plans (net of      forfeitures) |   | $      | 0.4     |   |   | $      | 0.4    |   |   | $ | 0.5 |   |
| Dividends      declared not paid                                                                                                                                           |   |   | — |   |   |   | 4.4    |   |   |   | 4.3 |   |
| Assets      obtained by capital lease                                                                                                                                      |   |   | 0.6     |   |   |   | 0.2    |   |   |   | 6.5 |   |
| Assets      financed*                                                                                                                                                      |   |   | 12.4    |   |   |   | 12.6   |   |   |   | 12.1 |   |

----

| * | Amounts      reported as financed are recorded as purchases of property, plant and      equipment in the statement of cash flows in the year  paid. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 14   | Commitments      and Contingencies |
|----------------|------------------------------------|

           InJanuary 2003 DNR and EPA released a Record of Decision (the "OU1-2 ROD") forOperable Units 1 and 2 ("OU1" and "OU2") of the Fox River site. OU1 is the reachof the river that is the farthest upstream and is immediately adjacent to theformer WT mill. The OU1-2 ROD selected a remedy, consisting primarily ofdredging, to remove substantially all sediment in OU1 with concentrations ofPCBs of more than 1 part per million in order to

----

           Underthe 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 resourcedamages ("NRD") for the Fox River site and $150,000 for past NRD assessmentcosts. These payments have been credited toward WT's potential liability forresponse costs and NRD associated with the Fox River site as a whole. Asdiscussed later in this section we believe that WT is entitled to substantialindemnification from a prior owner of WT with respect to these costs, and theprior owner has reimbursed WT for the payments made as required in the ConsentDecree.

----

              On October 25, 2000 the federal and tribal natural resources trustees released aRestoration and Compensation Determination Plan ("RCDP") presenting the federaland tribal trustees' planned approach for restoring injured federal and tribalnatural resources and compensating the public for losses caused by the releaseof PCBs at the Fox River site. The RCDP states that the final natural resourcedamage claim (which is separate from, and in addition to, the remediation andrestoration costs that will be associated with remedial action plans) willdepend on the extent of PCB clean-up undertaken by EPA and DNR, but estimatespast interim damages to be $65 million, and, for illustrative purposes only,estimates additional costs of restoration to address present and future PCBdamages in a range of $111 million to $268 million. To date Wisconsin has notissued any estimate of natural resource damages. We believe, based on theinformation currently available to us, that the estimate of natural resourcedamages in the RCDP represents the reasonably likely upper limit of the totalnatural resource damages. We believe that the alleged damages to naturalresources are overstated in the RCDP and joined in the PRP group comments on theRCDP to that effect. No final assessment of natural resource damages has beenissued.

----

           Theultimate cost to WT of remediation and restoration costs and natural resourcedamages related to the Fox River site and the time periods over which the costsand damages may be incurred cannot be predicted with certainty at this time dueto uncertainties with respect to: what remediation and restoration will beimplemented; the actual cost of that remediation and restoration; WT's share ofany multi-party remediation and restoration costs and natural resource damages;the outcome of the federal and state natural resource damage assessments; thetiming of any remediation and restoration; the evolving nature of remediationand restoration technologies and governmental regulations; controlling legalprecedent; the extent to which contributions will be available from otherparties; and the scope of potential recoveries from insurance carriers and priorowners of WT. While such costs and damages cannot be predicted with certainty atthis time, we believe that WT's reasonably likely share of the ultimateremediation and restoration costs and natural resource damages associated withthe Fox River site, including disbursement on behalf of WT of the remainingamount deposited by WT under the terms of the Consent Decree, may fall withinthe range of $36 million to $160 million, payable over a period of up to 40years.  In our estimate of the lower end of the range we have assumedremediation and restoration costs as estimated by our consultants for OU1 and asestimated 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 higher costs inall OUs and that our share of the ultimate aggregate liability for all PRPs willbe higher than we believe it will ultimately be determined to be. We haveaccrued an amount for the Fox River liability based on our estimate of thereasonably probable costs within the range as described above.

----

| 15   | Business      Segment Information |
|----------------|-----------------------------------|

----

| (in      millions)          |   | 2007   |    |   | 2006   |   |   | 2005   |   |
|-----------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Net      sales:             |   |   |    |   |   |   |   |   |   |
| Paperboard      Packaging   |   | $      | 879.7   |   |   | $      | 840.4  |   |   | $ | 827.4 |   |
| Plastic      Packaging      |   |   | 179.9   |   |   |   | 155.0  |   |   |   | 181.8 |   |
| Consolidated      net sales |   | $      | 1,059.6 |   |   | $      | 995.4  |   |   | $ | 1,009.2 |   |

| Operating      income:                                                 |   |   |    |   |   |   |             |   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|------------------|--------|--------|
| Paperboard      Packaging                                              |   | $      | 36.9    |   |   | $      |   42.9 |   |   | $ | 49.8 |   |
| Plastic      Packaging                                                 |   |   | 20.4    |   |   |   | 17.9             |   |   |   | 15.0 |   |
| Corporate                                                              |   |   | (16.3   | )      |   |   | (15.9            | )      |   |   | (17.1 | ) |
| Goodwill      impairment charge                                        |   |   | — |   |   |   | (14.3            | )      |   |   | (312.0 | ) |
| Restructuring      charges, asset impairmentsand      other exit costs |   |   | (15.8   | )      |   |   | (33.4            | )      |   |   | (10.7 | ) |
| Gain      (loss) on divestitures                                       |   |   | 1.5     |   |   |   | 3.1              |   |   |   | (2.8 | ) |
| Consolidated      operating income (loss)                              |   | $      | 26.7    |   |   | $      | 0.3              |   |   | $ | (277.8 | ) |
| Identifiable      assets:                                              |   |   |    |   |   |   |             |   |   |   |   |   |
| Paperboard      Packaging                                              |   | $      | 900.5   |   |   | $      | 859.9            |   |   | $ | 826.7 |   |
| Plastic      Packaging                                                 |   |   | 207.8   |   |   |   | 171.2            |   |   |   | 184.2 |   |
| Corporate                                                              |   |   | 105.4   |   |   |   | 83.7             |   |   |   | 112.1 |   |
| Consolidated      assets                                               |   |   | 1,213.7 |   |   | $      | 1,114.8          |   |   | $ | 1,123.0 |   |
| Capital      expenditures:                                             |   |   |    |   |   |   |             |   |   |   |   |   |
| Paperboard      Packaging                                              |   | $      | 35.7    |   |   | $      | 28.1             |   |   | $ | 29.7 |   |
| Plastic      Packaging                                                 |   |   | 13.9    |   |   |   | 7.7              |   |   |   | 8.0 |   |
| Corporate                                                              |   |   | — |   |   |   | —          |   |   |   | 0.6 |   |
| Consolidated      capital expenditures                                 |   | $      | 49.6    |   |   | $      | 35.8             |   |   | $ | 38.3 |   |
| Depreciation      and amortization:                                    |   |   |    |   |   |   |             |   |   |   |   |   |
| Paperboard      Packaging                                              |   | $      | 45.9    |   |   | $      | 48.4             |   |   | $ | 48.4 |   |
| Plastic      Packaging                                                 |   |   | 7.3     |   |   |   | 7.8              |   |   |   | 9.6 |   |
| Corporate                                                              |   |   | 0.2     |   |   |   | 0.2              |   |   |   | 0.3 |   |
| Discontinued      operations                                           |   |   | — |   |   |   | 0.2              |   |   |   | 0.9 |   |
| Consolidated      depreciation and amortization                        |   | $      | 53.4    |   |   | $      | 56.6             |   |   | $ | 59.2 |   |

----

| (in      millions)      |    | 2007    |   | 2006   |   | 2005   |
|-------------------------|---------|---------|--------|--------|--------|--------|
| Net      sales:         |    |    |   |   |   |   |   |   |   |
| United      Kingdom     | $       | 497.3   |   | $      | 498.6  |   | $ | 557.6 |   |
| Germany                 |    | 149.4   |   |   | 127.5  |   |   | 119.6 |   |
| Ireland                 |    | 103.1   |   |   | 90.6   |   |   | 79.8 |   |
| France                  |    | 91.3    |   |   | 82.1   |   |   | 78.9 |   |
| U.S.                    |    | 61.5    |   |   | 57.3   |   |   | 26.1 |   |
| Belgium                 |    | 52.6    |   |   | 53.1   |   |   | 61.2 |   |
| South      Africa       |    | 53.0    |   |   | 40.8   |   |   | 42.8 |   |
| Other                   |    | 51.4    |   |   | 45.4   |   |   | 43.2 |   |
| Total                   |  $ | 1,059.6 |   | $      | 995.4  |   | $ | 1,009.2 |   |
|                    |    |    |   |   |   |   |   |   |   |
| Long-lived      assets: |    |    |   |   |   |   |   |   |   |
| United      Kingdom     | $       | 185.0   |   | $      | 172.3  |   | $ | 186.4 |   |
| U.S.                    |    | 129.7   |   |   | 105.9  |   |   | 133.2 |   |
| Germany                 |    | 53.4    |   |   | 65.4   |   |   | 66.9 |   |
| France                  |    | 31.7    |   |   | 24.9   |   |   | 24.8 |   |
| Ireland                 |    | 29.2    |   |   | 25.5   |   |   | 23.4 |   |
| Belgium                 |    | 27.3    |   |   | 27.1   |   |   | 23.8 |   |
| South      Africa       |    | 16.1    |   |   | 11.7   |   |   | 14.4 |   |
| Other                   |    | 32.8    |   |   | 13.7   |   |   | 16.5 |   |
| Total                   | $       | 505.2   |   | $      | 446.5  |   | $ | 489.4 |   |

----

|      |     |   |        |   |                                 |   |            |   |                                                                                                                                                               |
|-----------|----------|--------|-------------|--------|--------------------------------------|--------|-----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |     |   |             |   |                                 |   |            |   | Per      Share                                                                                                                                                     |
| Quarter   | NetSales |   | GrossProfit |   | Income      fromContinuingOperations |   | Net      Income |   |  Income      fromContinuing      Operations           Basic                Diluted |   | Earnings           Basic                    Diluted |   | Dividends      Declared |
| 2007      |     |   |        |   |                                 |   |            |   |                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First(a)  | $272.0   |   | $           | 49.6   |                                 |   | $               | 0.9    |                                                                                                                                                               |   | $ | 0.7 |   |   | $ | 0.05 |   |   | $ | 0.05 |   |   | $ | 0.04 |   |   | $ | 0.04 |   |   | $ | 0.22 |   |
| Second(b) | 250.9    |   |        | 43.0   |                                 |   |            | (11.7  | )                                                                                                                                                             |   |   | (12.6 | )  |   |   | (0.60 | )  |   |   | (0.60 | ) |   |   | (0.65 | ) |   |   | (0.65 | ) |   |   | - |   |
| Third(c)  | 266.4    |   |        | 47.4   |                                 |   |            | 3.7    |                                                                                                                                                               |   |   | 3.2 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.16 |   |   |   | 0.16 |   |   |   | - |   |
| Fourth(d) | 270.3    |   |        | 39.2   |                                 |   |            | (6.7   | )                                                                                                                                                             |   |   | (6.8 | )  |   |   | (0.34 | ) |   |   | (0.34 | ) |   |   | (0.35 | ) |   |   | (0.35 | ) |   |   | - |   |
| Year      | $1,059.6 |   | $           | 179.2  |                                 |   | $               | (13.8  | )                                                                                                                                                             |   | $ | (15.5 | )  |   | $ | (0.71 | ) |   | $ | (0.71 | ) |   | $ | (0.80 | ) |   | $ | (0.80 | ) |   | $ | 0.22 |   |
| 2006      |     |   |        |   |                                 |   |            |   |                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First(e)  | $253.2   |   | $           | 44.6   |                                 |   | $               | (3.8   | )                                                                                                                                                             |   | $ | (4.7 | )  |   | $ | (0.20 | ) |   | $ | (0.20 | ) |   | $ | (0.24 | ) |   | $ | (0.24 | ) |   | $ | 0.22 |   |
| Second(f) | 236.3    |   |        | 41.5   |                                 |   |            | (0.7   | )                                                                                                                                                             |   |   | (4.8 | )  |   |   | (0.04 | ) |   |   | (0.04 | ) |   |   | (0.25 | ) |   |   | (0.25 | ) |   |   | 0.22 |   |
| Third(g)  | 247.9    |   |        | 42.7   |                                 |   |            | 5.4    |                                                                                                                                                               |   |   | 4.1 |   |   |   | 0.28 |   |   |   | 0.28 |   |   |   | 0.21 |   |   |   | 0.21 |   |   |   | - |   |
| Fourth(h) | 258.0    |   |        | 46.5   |                                 |   |            | (33.3  | )                                                                                                                                                             |   |   | (34.2 | )  |   |   | (1.72 | ) |   |   | (1.72 | ) |   |   | (1.76 | ) |   |   | (1.76 | ) |   |   | 0.44 |   |
| Year      | $995.4   |   | $           | 175.3  |                                 |   | $               | (32.4  | )                                                                                                                                                             |   | $ | (39.6 | )  |   | $ | (1.67 | ) |   | $ | (1.67 | ) |   | $ | (2.04 | ) |   | $ | (2.04 | ) |   | $ | 0.88 |   |

| (a) | The      first quarter of fiscal 2007 included restructuring charges of $.7      million, net of income taxes. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (b) | The      second quarter of fiscal 2007 included restructuring charges of $9.3      million, net of income taxes. |
|-----|------------------------------------------------------------------------------------------------------------------|

| (c) | The      third quarter of fiscal 2007 included restructuring charges of $2.9      million, net of income taxes; an income tax benefit of $3.5 million      related to the resolution of income tax contingencies; and an income tax      benefit of $1.2 million resulting from a re-evaluation of our deferred      taxes for changes in U.K. tax law and changes in statutory tax rates for      the U.K. and Germany. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | The      fourth quarter of fiscal 2007 included restructuring charges of      $0.5  million, net of income taxes; and a gain on divestiture on      $1.5 million, net of income tax related to the sale of the Company’s      plastic packaging operation in Lurgan, Northern Ireland      (“Lurgan”). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | The      first quarter of fiscal 2006 included restructuring charges of $2.8      million, net of income taxes; a loss on divestiture of $1.2 million, net      of income taxes, related to the sale of Lurgan; a loss of $0.6 million,      net of income taxes, for the redemption of £5.0 million principal amount      of the Company’s 10.375% senior subordinated notes due 2011; and a loss of      $0.9 million, net of income taxes, reported in discontinued operations      primarily related to the operating results of the Company’s French luxury      packaging business (“CLP”), which was sold in the third quarter of fiscal      2006. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (f) | The      second quarter of fiscal 2006 included restructuring charges of $1.6      million, net of income taxes and a loss of $4.1 million net of income      taxes, reported in discontinued operations primarily related to the      operating results of CLP. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (g) | The      third quarter of fiscal 2006 included restructuring charges of $1.3      million, net of income taxes; a gain on divestitures of $4.1 million, net      of income taxes related to the sale of Lurgan; an income tax benefit of      $4.1 million as a result of management’s reassessment of its valuation      allowance for deferred income tax assets in France following the sale of      CLP and a favorable settlement regarding an income tax contingency; and a      loss of $1.3 million net of income taxes, reported in discontinued      operations primarily related to the sale and operating results of      CLP. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (h) | The      fourth quarter of fiscal 2006 included a goodwill impairment charge of      $14.3 million, net of income taxes;  an asset impairment charge      of $21.1 million, net of taxes, restructuring charges of $0.6 million, net      of income taxes; an income tax benefit of $1.6 million related to a      favorable settlement regarding an income tax contingency and a loss of      $0.9 million net of income taxes, reported in discontinued operations      primarily related to an increase in the liability associated with the      disposition of assets of Wisconsin Tissue Mills Inc. in    1999. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  /s/      PricewaterhouseCoopers LLP |
|-------------------------------------------|
|  PricewaterhouseCoopers      LLP     |
|  Richmond,      Virginia             |
|  March 6,      2008                  |

| Item      9.   | Changes      in and Disagreements With Accountants on Accounting and Financial      Disclosure |
|--------------------------|------------------------------------------------------------------------------------------------|

----

| Item      9A.   | Controls      and Procedures |
|---------------------------|------------------------------|

| Item      9B.   |  Other      Information |
|---------------------------|------------------------------|

----

| Item      10.   | Directors,      Executive Officers and CorporateGovernance |
|---------------------------|------------------------------------------------------------|

| Item      11.   | Executive      Compensation |
|---------------------------|-----------------------------|

| Item      12.   | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters |
|---------------------------|----------------------------------------------------------------------------------------------------------|

| Item      13.   | Certain      Relationships and Related Transactions, and Director      Independence |
|---------------------------|-------------------------------------------------------------------------------------|

| Item      14.   | Principal      Accountant Fees and Services |
|---------------------------|---------------------------------------------|

----

| Item      15.   | Exhibits      and Financial Statement Schedules |
|---------------------------|-------------------------------------------------|

|  | a.   | The      following documents are filed as part of Item 8 of this      report: |
|--|----------------|-------------------------------------------------------------------------------|

|  | (i)   |               Financial      Statements |
|--|-----------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Consolidated      Balance Sheets — December 30, 2007 and December 31,  2006; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Consolidated      Statements of Operations — Years ended December 30, 2007, December 31,      2006 and January 1, 2006; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Consolidated      Statements of Cash Flows — Years ended December 30, 2007, December 31,      2006 and January 1, 2006; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Consolidated      Statements of Changes in Stockholders’ Equity — Years ended December 30,      2007, December 31, 2006 and January 1,2006; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Notes      to Consolidated FinancialStatements; |
|--------------------|-------------------------------------------------|

| ·   | Recent      Quarterly Results; and |
|--------------------|------------------------------------|

| ·   | Report      of Independent Registered Public AccountingFirm |
|--------------------|-------------------------------------------------------------|

| (ii)   |                    Financial Statement Schedules |
|------------------|-------------------------------------------------------------------------------------------------------------------|

|   | b. | Exhibits      filed or incorporated by reference: |
|--------|----|---------------------------------------------------|

----

|               |   | CHESAPEAKE      CORPORATION                   |
|--------------------|--------|-----------------------------------------------|
|               |   | (Registrant)                                  |
|               |   |                                          |
| March      6, 2008 | By     | /s/      GUY N. A. FALLER                     |
|               |   | Guy      N. A. Faller                         |
|               |   | Controller(Principal      Accounting Officer) |

| By                             | /s/      DAVID FELL                                                                                                             |   | By                                | /s/      JOEL K. MOSTROM                                                                                          |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                           | Sir      David FellDirector                                                                                                     |   |                              | Joel      K. MostromExecutive      Vice President & Chief Financial Officer(Principal      Financial Officer) |
|                           |                                                                                                                            |   |                              |                                                                                                              |
| By                        | /s/      BRIAN J. BUCHAN                                                                                                        |   | By                                | /s/      HENRI D. PETIT                                                                                           |
| Brian      J. BuchanDirector   |                                                                                                                            |   | Henri      D. PetitDirector       |
|                           |                                                                                                                            |   |                              |                                                                                                              |
| By                             | /s/      RAFAËL C. DECALUWÉ                                                                                           |   | By                                | /s/      JOHN W. ROSENBLUM                                                                                        |
|                           | Rafaël      C. DecaluwéDirector                                                                                       |   |                              | John      W. RosenblumDirector                                                                                    |
|                           |                                                                                                                            |   |                              |                                                                                                              |
| By                        | /s/      MARY JANE HELLYAR                                                                                                      |   | By                                | /s/      BEVERLY L. THELANDER                                                                                     |
| Mary      Jane HellyarDirector |                                                                                                                            |   | Beverly      L. ThelanderDirector |
|                           |                                                                                                                            |   |                              |                                                                                                              |
| By                             | /s/      JEREMY S. G. FOWDEN                                                                                                    |   | By                                | /s/      JOSEPH P. VIVIANO                                                                                        |
|                           | Jeremy      S. G. FowdenDirector                                                                                                |   |                              | Joseph      P. VivianoDirector                                                                                    |
|                           |                                                                                                                            |   |                              |                                                                                                              |
| By                             | /s/      ANDREW J. KOHUT                                                                                                        |   | By                                | /s/      HARRY H. WARNER                                                                                          |
|                           | Andrew      J. KohutPresident      & Chief Executive Officer  and      Director(Principal      Executive Officer) |   |                              | Harry      H. WarnerDirector                                                                                      |
|                           |                                                                                                                            |   |                              |                                                                                                              |

----

| 2.1    | Joint      Venture Agreement, dated as of October 4, 1999, among Georgia-Pacific      Corporation, Chesapeake Corporation, Wisconsin Tissue Mills Inc. and      Georgia-Pacific Tissue Company, LLC (filed as Exhibit 2.1 to the      Registrant’s Quarterly Report on Form 10-Q for the quarter ended September      30, 1999, and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.1    | Restated      Articles of Incorporation (filed as Exhibit 3.1 to the Registrant’s Annual      Report on Form 10-K for the year ended December 30, 2001, and incorporated      herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.2    | Amended      and Restated Bylaws of Chesapeake Corporation, as adopted February 13,      1990, with amendments through March 1, 2006 (filed as Exhibit 3.1 to the      Registrant’s Current Report on Form 8-K dated March 1, 2006, and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.3    | Amended      and Restated Bylaws of Chesapeake Corporation, as adopted February 27,      2008, effective as of April 23, 2008 (filed as Exhibit 3.1 to the      Registrant’s Current Report on Form 8-K dated March 1, 2008, and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.1    | Amended      and Restated Rights Agreement, dated as of February 21, 2001, between the      Registrant and Computershare Investor Services, LLC, successor to Harris      Trust and Savings Bank, as rights agent (filed as Exhibit 4.4 to the      Registrant’s Annual Report on Form 10-K for the year ended December 31,      2000, and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.2    | Second      Amended and Restated Credit Agreement, dated as of February 23, 2004      (amending and restating the Amended and Restated Credit Agreement, dated      as of February 8, 2001, as previously amended), among Chesapeake      Corporation, Chesapeake U.K. Holdings Limited, Chesapeake UK Acquisitions      PLC, Boxmore International Limited, and Field Group plc, as the Borrowers,      various financial institutions and other persons from time to time parties      thereto, as the Lenders, Wachovia Bank, National Association, as the      Administrative Agent, Bank of America, N.A. and Citicorp North America,      Inc., as the Syndication Agents, HSBC Bank plc, as the Documentation      Agent, and Wachovia Capital Markets, LLC, as a Co-Lead Arranger and the      Sole Book Runner, and Banc of America Securities LLC and Citicorp North      America, Inc, as Co-Lead Arrangers (filed as Exhibit 4.1 to the      Registrant’s Current Report on Form 8-K dated February 23, 2004, and      incorporated herein by reference) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.3    | Indenture,      dated as of November 19, 2001, between the Registrant and The Bank of New      York, as Trustee (filed as Exhibit 4.1 to Form S-4 Registration Statement      No. 333-75296, and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.4    | Indenture,      dated as of December 8, 2004, between the Registrant and Wachovia Bank,      National Association, as Trustee (filed as Exhibit 4.4 to the Registrant’s      Annual Report on Form 10-K for the year ended January 2, 2005, and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.5    | Form      of the Registrant’s 7% Senior Subordinated Notes due 2014 (filed as      Exhibit 4.5 to the Registrant’s Annual Report on Form 10-K for the year      ended January 2, 2005, and incorporated herein by    reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.6    | Amendment      No. 2, dated February 23, 2006, to the Second Amended and Restated Credit      Agreement dated February 23, 2004 (filed as exhibit 4.1 to the      Registrant’s Current Report on Form 8-K dated February 23, 2006 and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.7    | Amendment      No. 4, dated June 18, 2007, to the Second Amended and Restated Credit      Agreement dated 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.8    | Amendment      No. 5, dated January 18, 2008, to the Second Amended and Restated Credit      Agreement dated February 23, 2004 (filed as exhibit 4.1 to the      Registrant’s Current Report on Form 8-K dated January 18, 2008 and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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|  4.9                                                                                                                                                                                                                                                                                                          |  Amendment      No. 6, dated March 5, 2008, to the Second Amended and Restated Credit      Agreement dated February 23, 2004 (filed as exhibit 4.1 to the      Registrant’s Current Report on Form 8-K dated March 5, 2008 and      incorporated herein by reference)                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| The      Registrant agrees to furnish to the Securities and Exchange Commission,      upon request, copies of those agreements defining the rights of holders of      long-term debt of the Registrant and its subsidiaries that are not filed      herewith pursuant to Item 601(b)(4)(iii) of Regulation    S-K. |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.1*                                                                                                                                                                                                                                                                                                              | 1987      Stock Option Plan (filed as Exhibit A to the Registrant’s definitive Proxy      Statement for the Annual Meeting of Stockholders held April 22, 1987, and      incorporated herein by reference)                                                                                            |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.2*                                                                                                                                                                                                                                                                                                              | Directors’      Deferred Compensation Plan (filed as Exhibit VII to the Registrant’s      Annual Report on Form 10-K for the year ended December 28, 1980, and      incorporated herein by reference)                                                                                           |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.3*                                                                                                                                                                                                                                                                                                              | Non-Employee      Director Stock Option Plan (filed as Exhibit 4.1 to Form S-8 Registration      Statement No. 33-53478, and incorporated herein by    reference)                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.4*                                                                                                                                                                                                                                                                                                              | Executive      Supplemental Retirement Plan, as amended and restated on February 27, 2007      (filed as Exhibit 10.4 to the Registrant’s Annual Report on Form 10-K for      the year ended December 31, 2006, and incorporated herein by      reference)                                            |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.5*                                                                                                                                                                                                                                                                                                              | Retirement      Plan for Outside Directors (filed as Exhibit 10.9 to the Registrant’s      Annual Report on Form 10-K for the year ended December 31, 1987, and      incorporated herein by reference)                                                                                                |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.6*                                                                                                                                                                                                                                                                                                              | Chesapeake      Corporation Long-Term Incentive Plan (filed as Exhibit 10.9 to the      Registrant’s Annual Report on Form 10-K for the year ended December 31,      1989, and incorporated herein by reference)                                                                                      |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.7*                                                                                                                                                                                                                                                                                                              | Chesapeake      Corporation 1993 Incentive Plan (filed as Exhibit 4.1 to Form S-8      Registration Statement No. 33-67384, and incorporated herein by      reference)                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.8*                                                                                                                                                                                                                                                                                                              | Chesapeake      Corporation Directors’ Deferred Compensation Plan (filed as Exhibit 10.1      to the Registrant’s Current Report on Form 8-K dated March 1, 2006, and      incorporated herein by reference)                                                                                    |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.9*                                                                                                                                                                                                                                                                                                              | Chesapeake      Corporation 401(k) Restoration Plan (filed as Exhibit 10.11 to the      Registrant’s Annual Report on Form 10-K for the year ended December 31,      1996, and incorporated herein by reference)                                                                                      |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.10*                                                                                                                                                                                                                                                                                                             | Chesapeake      Corporation 1997 Incentive Plan (filed as exhibit 4.5 to Form S-8      Registration Statement No. 333-30763, and incorporated herein by      reference)                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.11*                                                                                                                                                                                                                                                                                                             | Amended      and Restated Executive Employment Agreement with J.P. Causey Jr., dated as      of April 22, 2003 (filed as Exhibit 10.4 to the Registrant’s Quarterly      Report on Form 10-Q for the quarter ended June 29, 2003, and incorporated      herein by reference)                          |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.12*                                                                                                                                                                                                                                                                                                             | First      Amendment to Executive Employment Agreement with J.P. Causey Jr., dated as      of January 3, 2005 (filed as Exhibit 10.7 to the Registrant’s Current      Report on Form 8-K dated January 3, 2005, and incorporated herein by      reference)                                            |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.13*                                                                                                                                                                                                                                                                                                             | Second      Amendment to Executive Employment Agreement with J.P. Causey Jr., dated as      of August 12, 2005 (filed as Exhibit 10.3 to the Registrant’s Quarterly      Report on Form 10-Q for the quarter ended July 3, 2005, and incorporated      herein by reference)                           |
|                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                        |
| 10.14*                                                                                                                                                                                                                                                                                                             | Notice      of Non-Renewal of the Amended and Restated Executive Employment Agreement      dated April 22,2003 with J.P. Causey Jr. (filed as Exhibit 10.1 to the      Registrant’s Quarterly Report on Form 10-Q for the quarter ended September      30, 2007, and incorporated herein byreference) |

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|  10.15* | Amended      and Restated Executive Employment Agreement with Andrew J. Kohut, dated as      of April 22, 2003 (filed as Exhibit 10.3 to the Registrant's Quarterly      Report on Form 10-Q for the quarter ended June 29, 2003, and incorporated      herein by reference)            |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                    |
| 10.16*       | First      Amendment to Executive Employment Agreement with Andrew J. Kohut, dated as      of January 3, 2005 (filed as Exhibit 10.9 to the Registrant’s Current      Report on Form 8-K dated January 3, 2005, and incorporated herein by      reference)                        |
|         |                                                                                                                                                                                                                                                                                    |
| 10.17*       |  Second      Amendment to Executive Employment Agreement with Andrew J. Kohut, dated as      of August 12, 2005 (filed as Exhibit 10.2 to the Registrant’s Quarterly      Report on Form 10-Q for the quarter ended July 3, 2005, and incorporated      herein by reference) |
|         |                                                                                                                                                                                                                                                                                    |
| 10.18*       | Third      Amendment to Executive Employment Agreement with Andrew J. Kohut, dated as      of December 13, 2005 (filed as Exhibit 10.4 to the Registrant’s Current      Report on Form 8-K dated December 12, 2005, and incorporated herein by      reference)                    |
|         |                                                                                                                                                                                                                                                                                    |
| 10.19*       | Amendments,      effective December 31, 2004, to the Chesapeake Corporation 401(k)      Restoration Plan (filed as Exhibit 10.20 to the Registrant's Current      Report on Form 8-K dated December 31, 2004, and incorporated herein by      reference)                                |
|         |                                                                                                                                                                                                                                                                                    |
| 10.20*       | Executive      Employment Agreement, dated as of April 22, 2003, with Joel K. Mostrom      (filed as Exhibit 10.12 to the Registrant’s Current Report on Form 8-K      dated January 3, 2005, and incorporated herein by    reference)                                            |
|         |                                                                                                                                                                                                                                                                                    |
| 10.21*       | First      Amendment to Executive Employment Agreement with Joel K. Mostrom, dated as      of August 12, 2005 (filed as Exhibit 10.13 to the Registrant’s Current      Report on Form 8-K dated January 3, 2005, and incorporated herein by      reference)                       |
|         |                                                                                                                                                                                                                                                                                    |
| 10.22*       | Second      Amendment to Executive Employment Agreement with Joel K. Mostrom, dated as      of January 3, 2005 (filed as Exhibit 10.4 to the Registrant’s Quarterly      Report on Form 10-Q for the quarter ended July 3, 2005, and incorporated      herein by reference)       |
|         |                                                                                                                                                                                                                                                                                    |
| 10.23*       | Chesapeake      Corporation 2005 Incentive Plan (incorporated herein by reference from      Annex I of the Company’s definitive Proxy Statement filed pursuant to      Section 14(a) of the Exchange Act on March 25, 2005)                                                       |
|         |                                                                                                                                                                                                                                                                                    |
| 10.24*       | Compromise      agreement with Neil Rylance, dated August 24, 2007, and filed      herewith                                                                                                                                                                                             |
|         |                                                                                                                                                                                                                                                                                    |
| 10.25*       | Named      Executive Officers’ and Directors’ compensation, filed      herewith                                                                                                                                                                                             |
|         |                                                                                                                                                                                                                                                                                    |
| 11.1         | Computation      of Net Income Per Share of Common Stock, filed herewith                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                    |
| 12.1         | Computation      of Ratio of Earnings to Fixed Charges, filed herewith                                                                                                                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                    |
| 21.1         | Subsidiaries,      filed herewith                                                                                                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                    |
| 23.1         | Consent      of PricewaterhouseCoopers LLP, filed herewith                                                                                                                                                                                                                              |
|         |                                                                                                                                                                                                                                                                                    |
| 31.1         | Certification      of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed      herewith                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                    |
| 31.2         | Certification      of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed      herewith                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                    |
| 32.1         | 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, filed    herewith                                                                                                                     |

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