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FREE-FLOW OPENS OPERATIONS IN SHANGHAI, CHINA

FOR IMMEDIATE RELEASE

FREE-FLOW PACKAGING IS FIRST TO OPEN LOOSEFILL OPERATIONS IN SHANGHAI, CHINA

Contact:
Virginia Lyle
Free-Flow Packaging Corporation
or

Redwood City, CA...September 6, 1996...Free-Flow Packaging Corporation today
announced its entry in the Asian packaging market. "We are opening the first
loosefill packaging manufacturing facility in Shanghai's Pudong area,
considered China's showcase special economic development zone," announced
Free-Flow President Arther Graham.

In cooperation with Montrose International of Greenwich, CT, Free-Flow
Packaging will manufacture and distribute its Pak (TM) loosefill from
leased premises in the Wai Goa Qino Free Trade Zone," stated Dennis
Fernandez, Free-Flow's CFO and director of international activities.
"Eventually we will expand into China's vast domestic market. Not only is
China poised for explosive growth, but it is well-positioned to take
advantage of our innovative technology, products and services," added
Fernandez.

Free-Flow engineers installed expansion equipment shipped from the US in
August and will train Chinese operations staff during September and October.
The new plant, Montrose Pak(TM) International, will be fully operational
in late October.

David Henderson, president of Montrose International, stated "We are pleased
to associate our packaging materials sales efforts with Free-Flow, a world
leader in the loosefill packaging industry."

Free-Flow Packaging Corporation is an international manufacturer of
protective packaging materials and systems. In addition, Free-Flow is
recognized for its environmental leadership in polystyrene recycling.

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Visit Free-Flow on the Internet---http://www.free-flow.com