EXHIBIT 99.3

FOR IMMEDIATE RELEASE

August 13, 2003

CONTACT:	Ronald J. Domanico
	V.P. and Chief Financial Officer
	(770) 948-3101

CARAUSTAR REVISES

SECOND QUARTER 2003 RESULTS

ATLANTA, Georgia—Caraustar Industries, Inc. (NASDAQ-NMS Symbol: CSAR) today announced a revision to the company’s second quarter results as previously reported on July 29, 2003. The company’s reporting and controls process related to filing its June 30, 2003 10-Q identified additional non-cash charges at a restructured operation. The charges, associated with the rationalization of Carolina Converting, Inc. (CCI), include an inventory adjustment of $1.6 million and a reserve for uncollectable receivables of $0.5 million.

The revised operating loss, net loss and loss per share for the quarter ended June 30, 2003 is $4.3 million, $9.8 million and $0.35, respectively, compared to the previously announced operating loss, net loss and net loss per share for the quarter of $2.2 million, $8.5 million and $0.31.

The revised operating loss, net loss and loss per share for the six-month period ended June 30, 2003 is $5.7 million, $17.0 million and $0.61 respectively, compared to the previously announced operating loss, net loss and net loss per share for the six-month period of $3.6 million, $15.6 million and $0.56.

The revised unaudited condensed consolidated financial statements are included below.

Caraustar, a recycled packaging company, is one of the largest and most cost-effective 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 serves the four principal recycled paperboard product markets: tubes, cores and cans; folding cartons and custom packaging; gypsum wallboard facing paper; and miscellaneous “other specialty” and converted products.

This press release may contain 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 about future events, operating results or financial condition. 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, increases in pension and insurance costs, downturns in industrial production, housing and construction and the consumption of

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PHONE 770 . 948 . 3101    Ÿ    P. O. BOX 115    Ÿ    AUSTELL, GA 30168-0115

3100 JOE JERKINS BOULEVARD    Ÿ    AUSTELL, GA 30106-3227

Caraustar Industries, Inc.

August 13, 2003

Page 2

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 (including specifically the recently acquired Smurfit-Stone industrial packaging operations) 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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CARAUSTAR INDUSTRIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Data)

	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2003			2002			2003			2002
SALES		$   246,843		$	229,122		$	499,745		$	448,024
COST OF SALES		204,072			184,886			410,418			360,379
Gross profit		42,771			44,236			89,327			87,645
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		45,237			36,396			88,831			70,391
Operating (loss) income before restructuring costs		(2,466	)		7,840			496			17,254
RESTRUCTURING AND IMPAIRMENT COSTS		1,835			985			6,167			985
Operating (loss) income		(4,301	)		6,855			(5,671	)		16,269
OTHER (EXPENSE) INCOME:
Interest expense		(11,244	)		(9,377	)		(21,581	)		(18,679	)
Interest income		235			492			436			868
Write-off of deferred debt costs		(1,812	)		0			(1,812	)		0
Gain on extinguishment of debt		0			0			0			87
Equity in income of unconsolidated affiliates		1,444			1,032			1,464			1,035
Other, net		253			(6	)		351			128
		11,124	)		(7,859	)		(21,142	)		(16,561	)
LOSS BEFORE MINORITY INTEREST AND INCOME TAXES		(15,425	)		(1,004	)		(26,813	)		(292	)
MINORITY INTEREST IN (INCOME) LOSSES		(58	)		55			(63	)		78
BENEFIT FOR INCOME TAXES		(5,648	)		(368	)		(9,913	)		(132	)
NET LOSS	$	(9,835	)	$	(581	)	$	(16,963	)	$	(82	)
BASIC
NET LOSS PER COMMON SHARE	$	(0.35	)	$	(0.02	)	$	(0.61	)	$	(0.00	)
Weighted average number of shares outstanding		27,911			27,857			27,911			27,857
DILUTED
NET LOSS PER COMMON SHARE	$	(0.35	)	$	(0.02	)	$	(0.61	)	$	(0.00	)
Diluted weighted average number of shares outstanding		27,911			27,857			27,911			27,857

Note: Certain prior year income statement items have been reclassified to conform with the current year presentation.

CARAUSTAR INDUSTRIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

	June 30, 2003			December 31, 2002
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	53,815		$	34,314
Receivables, net of allowances		104,005			106,149
Inventories		104,311			107,644
Refundable income taxes		596			14,926
Other current assets		9,049			8,498
Total current assets		271,776			271,531
PROPERTY, PLANT AND EQUIPMENT:
Land		14,487			14,337
Buildings and improvements		149,438			150,565
Machinery and equipment		634,301			643,863
Furniture and fixtures		15,240			14,894
		813,466			823,659
Less accumulated depreciation		(379,539	)		(380,264	)
Property, plant and equipment, net		433,927			443,395
GOODWILL, net		181,429			180,545
INVESTMENT IN UNCONSOLIDATED AFFILIATES		51,733			52,830
OTHER ASSETS		24,439			36,913
	$	963,304		$	985,214
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of debt	$	101		$	70
Accounts payable		64,117			60,027
Accrued interest		8,723			8,687
Accrued compensation		10,235			12,828
Accrued pension		11,700			11,279
Other accrued liabilities		30,928			36,941
Total current liabilities		125,804			129,832
SENIOR CREDIT FACILITY		0			0
OTHER LONG-TERM DEBT, less current maturities		533,172			532,715
DEFERRED INCOME TAXES		53,309			60,630
PENSION LIABILITY		18,605			13,572
DEFERRED COMPENSATION		1,409			1,500
OTHER LIABILITIES		4,719			4,584
MINORITY INTEREST		763			700
SHAREHOLDERS’ EQUITY:
Preferred stock, $.10 par value; 5,000,000 shares authorized; none issued		0			0
Common stock, $.10 par value; 60,000,000 shares authorized, 27,910,819 and 27,906,674 shares issued and outstanding at June 30, 2003 and and December 31, 2002, respectively		2,791			2,791
Additional paid-in capital		182,306			182,224
Retained earnings		62,603			79,566
Accumulated other comprehensive loss		(22,177	)		(22,900	)
		225,523			241,681
	$	963,304		$	985,214

CARAUSTAR INDUSTRIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	For the Six Months Ended June 30,
	2003			2002
Cash provided by (used in)
Operating activities:
Net loss	$	(16,963	)	$	(82	)
Gain on extinguishment of debt		0			(87	)
Depreciation and amortization		14,924			30,896
Write-off of deferred debt costs		1,812			0
Disposal of property, plant and equipment, net		687			326
Restructuring costs		5,670			985
Other noncash adjustments		(7,226	)		(347	)
Equity in income of unconsolidated affiliates, net of distributions		686			1,920
Changes in operating assets and liabilities		17,343			7,056
Net cash provided by operating activities		16,933			40,667
Investing activities:
Purchases of property, plant and equipment		(10,839	)		(10,701	)
Acquisitions of businesses, net of cash acquired		(707	)		(115	)
Proceeds from disposal of fixed assets		175			50
Other, net		0			499
Net cash used in investing activities		(11,371	)		(10,267	)
Financing activities:
Repayment of short and long-term debt		(8	)		(6,581	)
Proceeds from swap agreement unwind		15,950			0
Dividends paid		0			(833	)
Deferred debt costs		(2,003	)		(728	)
Net cash provided by (used in) financing activities		13,939			(8,142	)
Net change in cash and cash equivalents		19,501			22,258
Cash and cash equivalents at beginning of period		34,314			64,244
Cash and cash equivalents at end of period	$	53,815		$	86,502
Supplemental Disclosures:
Cash payments for interest	$	19,978		$	18,244
Income tax refunds net of payments	$	17,373		$	15,697