Chase Announces Sale of Its Sunburst Electronics Manufacturing Solutions Subsidiary

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Bridgewater, Mass. — Chase Corp. announces the sale of its Sunburst Electronics Manufacturing Solutions Inc. subsidiary.

Sunburst is located in West Bridgewater, Mass., and has been sold to the Edward L. Chase Revocable Trust in exchange for shares of Chase common stock currently held by the Trust. The closing date of the transaction was December 10, 2003, with an effective date for accounting purposes of December 1, 2003. The purchase price of $3 million will consist of approximately 230,000 shares of Chase common stock based on its average closing price over the 20 trading days ending December 5, 2003.

Concurrent with this transaction, Chase has also agreed to purchase 250,000 shares of common stock held by the Trust at the Average Closing Price, having an aggregate purchase price of approximately $3.25 million. These shares, totaling approximately 480,000, will be put into the treasury by the company.

The sale of Sunburst will result in an accounting charge of approximately $600,000, which will be recorded in the first quarter of fiscal 2004, and represents the write down of the book value of the Sunburst business to its current market value, as required by generally accepted accounting principles.

Chase Corp. is a diversified, advanced manufacturing company providing a wide variety of high quality products and services to multiple industries.