UFPT Announces Record First Quarter Results.

GEORGETOWN, Mass. -- UFP Technologies, Inc. (Nasdaq: UFPT), a manufacturer of packaging and component products, today reported a profit of $574,000, or $0.11 per diluted common share outstanding for its first quarter ended March 31, 2006. This represents a significant improvement over its 2005 first quarter net profit of $85,000, or $0.02 per diluted share outstanding. Sales for the quarter ended March 31, 2006 increased 33% to a record $24.1 million, from $18.2 million in the first quarter of 2005.

"We are extremely pleased with our results for the quarter," said R. Jeffrey Bailly, President and CEO. "Demand for our products continues to be strong in almost all of our target markets, as evidenced by our 33% sales growth," Mr. Bailly continued. "This was particularly true in the medical, military, and automotive markets."

"In addition to our solid top-line growth, we have improved manufacturing efficiencies in our automotive business unit," added Mr. Bailly. "Our large program in Georgia has ramped up very quickly and is now operating at a profit. In addition, we have significantly decreased material scrap and excess labor on several sunshade programs launched in 2005. This progress, coupled with strong performance in most of our other markets, is driving our improved results."

"With improved operating results and cash flow, we have also reinvigorated our acquisition efforts, starting with our recent acquisition of Stephen Packaging in Miami, Florida," Mr. Bailly said. "We believe a blend of internal growth and growth through acquisition, coupled with continuous efforts to improve our operating efficiencies, will position UFP Technologies for long-term success."

UFP Technologies is a leading designer and manufacturer of interior protective packaging solutions using molded fiber, vacuum-formed plastics, and molded and fabricated foam plastic products. The Company also designs and manufactures engineered component solutions using laminating, molding, and fabricating technologies. The Company primarily serves the automotive, computers and electronics, medical, aerospace and defense, consumer, and industrial markets.

This news release contains forward-looking information that involves risks and uncertainties, including statements about the Company's strategies for growth, efforts to improve operating efficiencies and the Company's belief about the long-term success of its strategies. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including the ability of the Company to integrate Stephen Packaging Corporation in a timely, cost-effective manner without material loss of customers, risks associated with the identification of suitable acquisition candidates and the successful, efficient execution and integration of such acquisitions, recent increases and possible further increases in the cost of the Company's raw materials and energy that the Company may not be able to pass through to its customers, other economic conditions that affect sales of the products of the Company's packaging customers, the ability of the Company to obtain new customers, the ability of the Company to achieve positive results due to competition, decisions by customers to cancel or defer orders for its products that previously had been accepted, evolving customer requirements, difficulties associated with the roll out of new products, the costs of compliance with Sarbanes-Oxley related requirements, general economic and industry conditions and other factors. Accordingly, actual results may ...