ATLANTA, Aug. 11 /EMWNews/ -- Atlantis Plastics, Inc.

(OTC: ATPL.PK) (the "Company") today announced that it has reached

definitive agreements to sell substantially all of the assets of its

Plastic Films business to AEP Industries Inc. (Nasdaq: AEPI) and

substantially all of the assets of its Molded Plastics Products business to

a subsidiary of Monomoy Capital Partners L.P., a New York based private

equity fund.



    The Company also announced today that on Sunday, August 10, 2008, it

filed voluntary petitions for Chapter 11 reorganizations for itself and its

subsidiaries in the United States Bankruptcy Court for the Northern

District of Georgia to facilitate the sale of its Plastic Films and Molded

Plastic Products businesses. The Chapter 11 bankruptcy filings and the

aforementioned purchase agreements were undertaken with the support of the

Company's Senior Secured Lenders. The Company will seek Bankruptcy Court

approval of the sales pursuant to Section 363(f) of the Bankruptcy Code.

The proposed sales will be subject to higher and better offers, bankruptcy

court approval and other conditions customary in transactions of this type.

The Company anticipates closing the sales in October 2008.



    "After reviewing all of our alternatives, the Company's management and

Board of Directors, working in consultation with outside legal and

financial advisors, unanimously determined that sales of our Plastic Films

and Molded Plastic Products businesses through the Chapter 11 process would

provide the best result for our creditors, suppliers, employees and

customers," said Bud Philbrook, Chief Executive Officer and President of

the Company. He added: "We are pleased to have entered into agreements with

AEP and Monomoy, both of which share our strong commitment to customer

care. We are confident that the Films and Molded Products businesses of

Atlantis Plastics will be well positioned with these well respected

companies."



    The Company further announced today that it has reached an agreement

with a consortium of lenders led by GE Business Financial Services Inc. for

a $26.5 million post petition financing facility which will provide the

Company with sufficient working capital and financial resources to continue

normal business operations at all of its facilities. The Company has filed

a motion with the Bankruptcy Court to approve that financing and has

requested an expedited hearing on the motion so as not to disrupt its

businesses.



    The Company is also seeking, and expects to receive, approval from the

Bankruptcy Court for a variety of other motions it has filed, including,

but not limited to, requests to pay wages and salaries, honor existing

employee benefits, and continue customer programs.

    About Atlantis Plastics:



    Atlantis Plastics, Inc. is a leading U.S. manufacturer of polyethylene

stretch and custom films and molded plastic products. Stretch films are

used to wrap pallets of materials for shipping or storage. Custom films are

made- to-order specialty film products used in the industrial and packaging

markets. Atlantis' injection molded and profile extruded plastic products

are used primarily in the appliance, automotive, agricultural, building

supply and recreational vehicle industries.






    For more information, please visit http://www.atlantisplastics.com .



    For Further Information:

    Paul G. Saari

    Chief Financial Officer

    (800)497-7659