- $75 MILLION DIP FINANCING FACILITY APPROVED- COMPANY RECEIVES PERMISSION TO PAY

- $75 MILLION DIP FINANCING FACILITY APPROVED- COMPANY RECEIVES PERMISSION TO PAY PRE-PETITION GENERAL UNSECURED CLAIMS- COURT APPROVES CONTINUATION OF EMPLOYEE WAGES, SALARIES AND BENEFITSCARAUSTAR RECEIVES DELISTING NOTICE FROM NASDAQATLANTA, June 3 /PRNewswire-FirstCall/ -- Caraustar Industries, Inc. "Having received approval of our first-day motions so quickly sets Caraustaron strong footing as we move towards completing our recapitalization," statedCaraustar's President and Chief Executive Officer, Michael J Keough. "Thisaction by the Court will be well received by our employees, customers andsuppliers."In addition, the court approved use of the company's existing cash managementsystem and substantially all of its existing bank accounts. The Court alsoauthorized the immediate use of up to $25 million of the $75 million seniorsecured debtor-in-possession revolving credit facility from General ElectricCapital Corporation (the "DIP Facility") which will allow the company thesupport required to fund operations, pay employees' wages and benefits, andpurchase goods and services during the restructuring period. "The approval of our DIP financing and the Court's permission to paypre-petition general unsecured claims in the ordinary course of business meansthat our trade creditors will continue to be paid, and as a result, we expectto assure continuity of supply to our customers."The company also announced it received a "Staff Determination" notificationfrom Nasdaq that its equity securities will be delisted from The Nasdaq StockMarket. The decision was based upon Nasdaq's Marketplace Rules 5100, 5110(b)and IM-5100-1, and was made after reviewing the company's press release thatit had filed for protection under Chapter 11 of the U.S Bankruptcy Code andother publicly available information.

Trading of the company's common stock onthe Nasdaq Stock Market will be suspended at the opening of business on June11, 2009. Nasdaq will file a Form 25-NSE with the Securities and ExchangeCommission, which will remove the securities from listing and registration.The company does not plan to appeal the Staff Determination. is one of North America's largest integratedmanufacturers of 100% recycled paperboard and converted paperboard products.The company is a socially responsible corporation, is committed toenvironmentally sound practices and is dedicated to providing customers withoutstanding value through innovative products and services. Caraustar hasdeveloped its leadership position in the industry through diversification andintegration from raw materials to finished products.

Caraustar serves the fourprincipal recycled boxboard product end-use markets: tubes and cores; foldingcartons; gypsum facing paper and specialty paperboard products. For additionalinformation on Caraustar, please visit the company's website at Looking StatementThis press release contains certain "forward-looking statements," within themeaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934, that represent the company's expectations,anticipations or beliefs about future events, operating results or financialcondition, restructuring plans, business plans and industry trends and theirpotential impact on the company's business and financial results. Statementsthat are not statements of historical fact, as well as statements includingwords such as "expect," "intend," "will," "believe," "estimate," "project,""budget," "forecast," "anticipate," "plan," "may," "would," "could," "should,""predicts," "potential," "continue," and similar expressions are intended toidentify such forward-looking statements. Forward-looking statements involveknown and unknown risks, uncertainties and other factors that may cause actualresults, levels of activity, performance or achievements to differ materiallyfrom results expressed or implied by such statements.