Sonoco announces engineered carriers price increase

Hartsville, S.C., March 4, 2004, -- Sonoco (NYSE: SON) will raise prices on all engineered carriers by eight percent effective April 1, 2004, it was announced today by Ronald E. Holley, senior vice president.

"Market conditions over the past few years have not allowed us to recover mounting transportation, energy, insurance, healthcare and pension costs, all of which remain high. In addition, we are now seeing increases in prices of uncoated recycled paperboard and other materials. While our productivity and cost-cutting initiatives have helped us maintain prices, we cannot continue to absorb this combination of cost pressures.

"Furthermore, increasing demand for recovered paper from China, signs of general economic strengthening, announced increases for containerboard and increasing paper mill utilization rates are all historical indicators that we are likely entering a cycle of increasing paper prices and resulting engineered carrier price increases," said Holley.

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