On December 26, 2006, CPAC Inc. (Nasdaq: CPAK) announced it had entered into a definitive merger agreement under which affiliates of Buckingham Capital Partners II, L.P. will acquire all the outstanding shares of CPAC, Inc. for $8.65 per share. The Company is in the process of completing and filing the definitive proxy statement, at which time the Board will announce the date of the Company's Special Meeting of Shareholders to vote on approving the merger agreement. The anticipated date of this meeting is late March or early April, 2007. As specified in the Form 8K filed in January 2007, the merger agreement prohibits CPAC from declaring or paying any dividend with respect to its shares of Company stock.