EXHIBIT 99.1


                               [CARAUSTAR LOGO]


FOR IMMEDIATE RELEASE
DECEMBER 20, 2001


                                               CONTACT: H. Lee Thrash, III
                                                        Chief Financial Officer
                                                        (770) 948-3101


                      CARAUSTAR INDUSTRIES, INC. ANNOUNCES
                      FOURTH QUARTER OUTLOOK; ANTICIPATES
            RETURN TO MORE NORMAL VOLUMES IN THE FIRST HALF OF 2002


ATLANTA, GEORGIA - Caraustar Industries, Inc. (NASDAQ-NMS Symbol: CSAR) today
announced that it expects a fourth quarter 2001 loss to be in the range of
$0.14 to $0.18 per share, versus a First Call average estimated income of $0.02
per share. The company believes this shortfall is attributable to the
unexpected continuing decline in industrial production and inventory
liquidation in the fourth quarter due to still weak consumer demand. This
negative cycle in the paperboard packaging business has now lasted for more
than 18 months, but the company believes that its new customer supply
agreements together with anticipated improvement in the economic environment,
will support a return to more normal business operations in the first half of
2002.

Commenting on the expected results for the fourth quarter, Thomas V. Brown,
president and chief executive officer of Caraustar, stated, "October shipments
of folding cartons and paper mill tonnage were the strongest in 18 months.
However, in November and thus far in December, customers in all of our basic
business product lines have scaled back or delayed orders to further manage
down their inventories in the wake of lower industrial production and softer
consumer demand. Orders from recently executed customer supply agreements for
light weight clay coated products have also been slower to materialize than
expected, as those customers are using up existing inventories before
reordering. We expect that volumes in the first and second quarter of 2002 will
finally begin to reflect the results of our new product development
initiatives. As we've indicated in prior commentaries, we believe the new
demand for coated board from recent agreements and carton division business
gains will fully


           PHONE 770-948-3101 - P.O. BOX 115 - AUSTELL, GA 30168-0115
              3100 JOE JERKINS BOULEVARD - AUSTELL, GA 30106-3227





Caraustar Industries, Inc.
December 20, 2001
Page 2


contribute over 50,000 annual tons of incremental volume for our mills
beginning in the first quarter of 2002."

Caraustar, a recycled packaging company, is one of the largest and lowest-cost
manufacturers and converters of recycled paperboard and recycled packaging
products in the United States. The company has developed its leadership
position in the industry through diversification and integration from raw
materials to finished products. Caraustar is the only major packaging company
that serves the four principal recycled paperboard product markets: tubes,
cores and cans; folding carton and custom packaging; gypsum wallboard facing
paper; and miscellaneous "other specialty" and converted products.

This press release contains certain "forward-looking statements," within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, that represent the company's expectations,
anticipations or beliefs, including statements regarding the company's expected
fourth quarter 2001 loss per share, expected increases in product volume, the
expected volume contribution of recent supply agreements and carton division
business gains and the expected improvement in economic conditions and return
to more normal business operations. For this purpose, any statements that are
not statements of historical fact may be deemed to be forward-looking
statements. These statements involve risks and uncertainties that could cause
actual results to differ materially depending on a variety of important
factors, including, but not limited to, fluctuations in raw material prices and
energy costs, downturns in industrial production, housing and construction and
the consumption of durable and nondurable goods, the degree and nature of
competition, demand for the company's products, the degree of success achieved
by the company's new product initiatives, changes in government regulations,
the company's ability to complete acquisitions and successfully integrate the
operations of acquired businesses and the company's ability to service its
substantial indebtedness. Additional relevant risk factors that could cause
actual results to differ materially are discussed in the company's registration
statements and reports filed with the Securities and Exchange Commission, which
are available from the company. These documents also may be examined at public
reference facilities maintained by the Securities and Exchange Commission or,
to the extent filed via EDGAR, accessed through the Web Site of the Securities
and Exchange Commission (http://www.sec.gov). The company does not undertake
any obligation to update any forward-looking statements and is not responsible
for any changes made to this press release by wire or Internet services.


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