<PAGE>

                                                                      Exhibit 99

          CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" OF THE
                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

         The following factors, among others, could cause actual results to
differ materially from those contained in forward-looking statements made in
this report and presented elsewhere by management from time to time.

WE OPERATE IN HIGHLY COMPETITIVE MARKETS AND OUR CUSTOMERS MAY NOT CONTINUE TO
PURCHASE OUR PRODUCTS.

         There are approximately eight primary North American manufacturers
producing OPP films for resale, including ExxonMobil Corporation, which is the
second largest OPP films manufacturer in North America, Toray Industries, Inc.,
Vifan Canada Inc. and Formosa Plastics Corporation, U.S.A. Some of our
competitors are subsidiaries of substantially larger, more diversified
corporations and have greater financial, personnel and marketing resources than
we have and therefore, may have some competitive advantages. Our competitors
also include manufacturers of flexible packaging products who offer a broad
range of products and maintain product and marketing facilities internationally.
We also sell products in countries outside the United States and may face
international competition. In addition, any of our converter customers could
become competitors by acquiring, or becoming, a supplier of OPP films.

         The markets in which we operate are highly competitive. Competition in
the OPP films market is based primarily on customer relationships, product
performance characteristics, such as machinability, quality, reliability, and
price. Our ability to be an effective competitor will depend on our ability to
compete on the basis of these characteristics. It will also depend on our
success in developing new and enhanced products for our customers. Although we
have broad product lines and are continually developing new and enhanced
products, our current customers may not continue to purchase our products, we
may not be successful in avoiding product obsolescence, and we may not be able
to compete effectively with these companies.

INDUSTRY OVERCAPACITY HAS NEGATIVELY AFFECTED OUR PROFITABILITY, AND COULD
CONTINUE TO NEGATIVELY AFFECT OUR PROFITABILITY.

         Production capacity in the OPP films industry increased over 35 percent
from 1995 to 1999 causing capacity utilization levels to decline from
approximately 95 percent to the low-80 percent levels. This decline in capacity
utilization led to sharp declines in selling prices of OPP films. In addition,
as a result of our excess capacity, we attempted to fill our capacity with sales
throughout the product line, while minimizing price disruption. This resulted in
an increase in sales of lower margin products, negatively affecting our
profitability.

         Only ourselves and ExxonMobil Corporation have announced any additional
new capacity, and both of these are relatively small lines, cumulatively
aggregating to less than one year's demand growth at the historical six percent
level. However, if additional unexpected capacity were added, industry capacity
utilization levels would fall, which could result in lower



<PAGE>

sales prices. In addition, if demand does not grow at the historical level and
capacity outgrows demand, industry overcapacity could harm our business and our
debt service capabilities.

WE HAVE SUBSTANTIAL DEBT OUTSTANDING THAT COULD LIMIT THE FLEXIBILITY OF OUR
BUSINESS OPERATIONS.

         We have a high level of debt compared to our assets and stockholders'
equity and, as a result, we have significant debt service obligations. As of
September 30, 2001, we had $277.4 million of consolidated outstanding debt, all
of which was senior debt. Our total consolidated debt as a percentage of
capitalization was 77.9 percent. Our annual debt service payment obligation for
outstanding debt is approximately $30 million. We and our subsidiaries may be
able to incur substantial additional indebtedness in the future. If new debt is
added to our and our subsidiaries' current debt levels, the related risks that
we and they now face could intensify.

         Our high debt level could have important consequences such as:

         .    limiting our ability to obtain additional financing to fund
              working capital, capital expenditures, debt service requirements
              or other purposes;

         .    limiting our ability to use operating cash flow in other areas of
              our business because we must dedicate a substantial portion of
              these funds to make principal payments and fund debt service;

         .    limiting our ability to compete with others who are not as highly
              leveraged; and

         .    increasing our vulnerability to adverse market conditions,
              changes in our industry and economic downturns.

         Our ability to service our debt and to fund working capital and capital
expenditures will depend on our ability to generate cash in the future. This
depends, to some extent, on prevailing economic conditions, and on business,
financial and other factors, including the other risk factors described in this
Exhibit. Many of these factors are beyond our control. If we cannot generate
sufficient cash flow from operations to make scheduled payments on our debt or
to meet our other obligations, we will need to refinance our debt, obtain
additional funds through the incurrence of additional debt or the sale of our
equity securities, or sell our assets. We may not be able to obtain additional
funds or sell assets sufficient to satisfy our debt service requirements on
terms satisfactory to us or at all, and we may not be able to refinance our bank
credit facility prior to its scheduled maturity in 2003 allowing for future
borrowings in an amount sufficient to enable us to pay our indebtedness or to
fund our other liquidity needs.

THE OPERATING AND FINANCIAL RESTRICTIONS AND COVENANTS IN OUR EXISTING AND
FUTURE DEBT AGREEMENTS MAY MATERIALLY ADVERSELY AFFECT OUR ABILITY TO FINANCE
OPERATIONS OR CAPITAL NEEDS OR TO ENGAGE IN OTHER BUSINESS ACTIVITIES AND MAY
SEVERELY LIMIT OUR ABILITY TO PLAN FOR OR RESPOND TO CHANGES IN OUR BUSINESS.

                                       -2-

<PAGE>

         The operating and financial restrictions and covenants in our debt
agreements, including the indenture governing our 10 3/4% Series B Senior Notes
due 2011 (the "Senior Notes"), our bank credit facility, and any future
financing agreements, may materially adversely affect our ability to finance
future operations or capital needs or to engage in other business activities.
For example, our bank credit facility includes covenants that require us to meet
certain financial ratios and financial conditions that may require that we take
action to reduce debt or to act in a manner contrary to our business objectives.
In addition, our bank credit facility restricts, among other things, our ability
to incur additional indebtedness and make acquisitions and capital expenditures
beyond a specified level. A breach of any of these restrictions or covenants
could cause a default under the Senior Notes, our bank credit facility and other
debt. A significant portion of our debt may then become immediately due and
payable. If we fail to comply with the restrictions in our bank credit facility
and the lenders declare the entire amount due and payable, they could prohibit
us from making payments of interest and principal on the Senior Notes until the
default is cured or all the debt is paid or otherwise satisfied in full. We are
not sure whether we would have, or be able to obtain, sufficient funds to make
these accelerated payments, including payments on the Senior Notes.

PRICE INCREASES AND SHORTAGES IN THE SUPPLY OF POLYPROPYLENE RAW MATERIALS COULD
DECREASE OUR PROFITABILITY.

         Polypropylene, which is a petroleum derivative, is the basic raw
material used in the manufacture of most of our products. The price of
polypropylene is a function of, among other things, manufacturing capacity,
demand and the price of petrochemical raw materials, including crude oil and
natural gas liquids. Historically, the price of polypropylene has fluctuated. In
recent years, we have not been able to pass through a significant portion of
increases in the costs of polypropylene raw materials to end-users due to OPP
films industry capacity, and we may not be able to do so in the future. Due to
our high fixed costs, a decrease in the spread between the selling price of our
products and the cost of polypropylene raw material has a disproportionate
impact on our results of operations. For example, each $.01 decrease in the
spread between our selling price per pound and resin costs per pound in fiscal
2001 would have reduced our EBITDA by $2.4 million. As a result, increases in
the price of raw materials could adversely affect our operating margins and our
debt service capabilities.

         The majority of our resin supply requirements are met by four
suppliers. If any of our suppliers were not able to meet our requirements, we
would incur costs in connection with engaging a new supplier. In addition, the
cancellation of one or more of our favorable resin supply contracts could have a
material adverse effect on our financial condition, results of operation or cash
flows.

WE MAY NOT BE ABLE TO PROTECT OUR INTELLECTUAL PROPERTY AGAINST COMPETITORS,
MAINTAIN ITS VALUE, OR CONTINUE TO DEVELOP INNOVATIVE PROPRIETARY TECHNOLOGY.

         Our success is partially dependent on our trade secrets, know-how,
patents, trademarks and other proprietary information. We generally have a
number of new patent applications

                                       -3-

<PAGE>

pending at any given time relating to product enhancements and new product
developments. We may not obtain patents on the basis of our applications, any
patents that we hold may not provide us with adequate protection for the covered
products, technology, or target markets and any patents or other rights that we
hold may not be sufficient protection for our intellectual property in foreign
countries. Additionally, our confidentiality agreements may not adequately
protect our trade secrets, know-how or other proprietary information. Further,
our activities may infringe on the patents, trademarks or proprietary rights of
others and we may not be able to obtain licenses, on reasonable terms or
otherwise, to technology that we may need to conduct or expand our business.

         Our continued success will depend to a large extent upon our ability to
maintain a superior technology capability and to continue to identify, develop
and commercialize innovative products for specialty applications to replace
existing products, the margins of which tend to decline as a result of the entry
of competitive products into existing specialized markets. We may not be able to
accomplish this and technological developments by our competitors may place some
of our products at a competitive disadvantage in the future.

THE LOSS OF A KEY CUSTOMER COULD DECREASE OUR PROFITABILITY.

         Approximately 53.3 percent of our sales in fiscal 2001 consisted of
sales to ten converters, with one accounting for over 18 percent of sales.
Substantially all of the converted products are resold by the converters to a
relatively small number of large consumer products companies or end-users. Both
converters and end-users participate in the selection of OPP films suppliers. As
is customary in the industry, we generally have no long-term contracts with our
customers, and substantially all of our relationships can be terminated on short
notice. We believe that our relationships with these customers and end-users are
good, but we may not be able to maintain these relationships or continue to
supply our customers at current levels. Unless replaced, the loss of a
significant converter or end-user of our OPP films products could materially
adversely affect our results of operations and cash flows and ability to service
our debt.

THE SEASONAL FLUCTUATION OF OUR OPERATING RESULTS OR AN UNFORESEEN REVENUE
SHORTFALL COULD HAVE A SUBSTANTIAL IMPACT ON OUR BUSINESS.

         The sales of some of our products have historically fluctuated due to
stronger demand in some seasons than in others. For example, demand for our
products in the snack food and soft drink markets is generally higher in the
spring and summer. Our results have typically followed a similar seasonal
pattern, with stronger operating performance in the second and third fiscal
quarters. In addition, we plan our operating expenses, many of which are
relatively fixed in the short term, on the basis that our revenues will continue
to grow. A revenue shortfall, however, could arise from any number of factors
including, but not limited to, lower than expected demand, price pressures,
supply constraints, delays in the availability of new products, transit
interruptions, overall economic conditions or natural disasters. Even a
relatively small revenue shortfall may cause a period's results to fall below
expectations.

                                       -4-

<PAGE>

WE ARE DEPENDENT UPON KEY PERSONNEL AND COULD HAVE A NEED TO HIRE AND TRAIN
ADDITIONAL QUALIFIED PERSONNEL.

         We believe that our future success depends in part upon our ability to
attract and retain skilled senior management and technical, professional,
marketing, and sales personnel. We, along with other technology-oriented
manufacturing companies, face competition in hiring and retaining skilled
technical, professional, marketing, and sales personnel. In certain areas, such
as chemical and process engineering, and sales and marketing, the supply of such
people is limited. The process of locating personnel with the combination of
skills and attributes required to carry out our strategy is often lengthy. Our
employees may voluntarily terminate their employment with us at any time. The
loss of service of key personnel, or the inability to attract additional
qualified personnel, could have a material adverse effect on our business.

OUR BUSINESS IS SUBJECT TO SUBSTANTIAL HEALTH AND ENVIRONMENTAL REMEDIATION AND
COMPLIANCE COSTS AND ANY COSTS THAT RESULT FROM FUTURE LIABILITIES OR
OBLIGATIONS MAY REDUCE THE RESOURCES WE CAN DEDICATE TO ATTEMPTING TO
SUCCESSFULLY IMPLEMENT OUR BUSINESS STRATEGY.

         We are subject to extensive and changing federal, state and foreign
laws and regulations establishing health and environmental quality standards,
and may be subject to liability or penalties for violations of those standards.
We are also subject to law and regulations governing remediation of
contamination at facilities currently or formerly owned or operated by us or to
which we have sent hazardous substances or wastes for treatment, recycling or
disposal. We believe that we are currently in compliance, in all material
respects, with all such laws and regulations. However, we may be subject to
future liabilities or obligations as a result of new or more stringent
interpretations of existing laws and regulations. In addition, we may have
liabilities or obligations in the future if we discover any environmental
contamination or liability at any of our facilities, or at facilities we may
acquire. Any additional liability may reduce the resources we can dedicate to
attempting to successfully implement our business strategy.

WE MAY NOT BE ABLE TO SUCCESSFULLY INTEGRATE CURRENT AND FUTURE ACQUISITIONS
WHICH MAY INTERRUPT OUR BUSINESS AND IMPAIR OUR ABILITY TO GROW.

         We continually explore opportunities to acquire related businesses,
some of which could be material to us. We currently have no agreements to
acquire any businesses or assets. Our ability to continue to grow may depend
upon identifying and successfully acquiring attractive companies, effectively
integrating such companies, achieving cost efficiencies and managing these
businesses as part of our company.

         We may not be able to effectively integrate the acquired companies and
successfully implement appropriate operational, financial and management systems
and controls to achieve the benefits expected to result from these acquisitions.
Our efforts to integrate these businesses could be affected by a number of
factors beyond our control, such as regulatory developments, general economic
conditions, increased competition and the loss of customers resulting from the

                                       -5-

<PAGE>

acquisitions. In addition, the process of integrating these businesses could
cause an interruption of, or loss of momentum in, the activities of our existing
business and the loss of key personnel and customers. The diversion of
management's attention and any delays or difficulties encountered in connection
with the integration of these businesses could negatively impact our
profitability and results of operations if any of the above adverse effects were
to occur. Further, the benefits that we anticipate from these acquisitions may
not develop.

LABOR DISRUPTIONS AT OUR UNIONIZED AND NON-UNIONIZED FACILITIES COULD INCREASE
OUR MANUFACTURING COSTS, CAUSING OUR PROFITABILITY TO DECLINE.

         We employ approximately 1,000 full-time employees. Approximately 125
production and maintenance employees at our plant in Covington, Virginia are
represented by the Paper Allied Industrial Chemical and Energy Workers
International Union, Local 2-0884 under a collective bargaining agreement that
expires in June, 2005. A labor-related work stoppage by these unionized
employees could increase our manufacturing costs, causing our profitability to
decline. In addition, it is possible that any labor union efforts to organize
employees at our non-unionized facilities might be successful and that any
labor-related work stoppages at these non-unionized facilities in the future
could have the same negative results.

OUR OPERATIONS OUTSIDE OF THE UNITED STATES ARE SUBJECT TO ADDITIONAL CURRENCY
CHANGE, POLITICAL, INVESTMENT AND OTHER RISKS THAT MAY DECREASE PROFITABILITY.

         We sell products in several countries outside the United States.
Operations outside the United States include a manufacturing facility in Canada
and sales offices in Asia, Europe and Canada. As a result, we are subject to
risks associated with selling and operating in foreign countries. These risks
include devaluations and fluctuations in currency exchange rates, unstable
political conditions, imposition of limitations on conversion of foreign
currencies into United States dollars and remittance of dividends and other
payments by foreign subsidiaries. The imposition or increase of withholding and
other taxes on remittances and other payments by foreign subsidiaries, and
imposition or increase of investment and other restrictions by foreign
governments could decrease profitability.

A LARGE PART OF OUR PRODUCTION OCCURS AT A SINGLE LOCATION.

         Our largest manufacturing facility, which accounts for approximately 75
percent of our overall OPP films production capacity, is located in Terre Haute,
Indiana. Though we also have significant manufacturing capacity at other
facilities, a fire, flood or other force majeure event at our Terre Haute
facility could cause a significant disruption in our ability to manufacture at
or near our capacity. While we believe we are adequately insured against the
short-term impact of losses and business interruptions of this kind, any such
disruption could have a material adverse effect on our business.

ANTITAKEOVER PROVISIONS COULD NEGATIVELY IMPACT THE SALE OR SALE PRICE OF THE
COMPANY.

                                       -6-

<PAGE>

         Our Certificate of Incorporation and Bylaws contain provisions that
could prevent or delay the acquisition of the Company by means of a tender
offer, a proxy contest or otherwise in which stockholders might receive a
premium over the then current market price of our stock. These provisions
include advance notice procedures for stockholders to submit proposals for
consideration at stockholders' meetings or to nominate persons for election as
directors and provide for a staggered Board of Directors. We are also subject to
Section 203 of the Delaware General Corporation Law, which limits transactions
between a publicly held company and "interested stockholders" (generally, those
stockholders who, together with their affiliates and associates, own 15% or more
of the company's outstanding capital stock).

         We also have issued to our shareholders rights to purchase shares of
our Junior Preferred Stock, which rights become exercisable for shares of our
Common Stock at a price favorable to the holder upon the occurrence of certain
change of control events. In addition, upon the occurrence of specific kinds of
change of control events, as defined in the indenture, we will be required to
offer to repurchase all of the outstanding Senior Notes at 101% of the principal
amount thereof, plus accrued interest to the date of repurchase. The existence
of each of these rights may discourage attempts to acquire the Company by
increasing the cost of the transaction to any potential acquirer.

                                       -7-