EAGLE PACIFIC INDUSTRIES REPORTS RECORD 1Q EARNINGS

MINNEAPOLIS – April 24, 2000 – Eagle Pacific Industries, Inc. (Nasdaq: "EPII") today reported record sales and earnings for the three months ended March 31, 2000. Eagle Pacific also reported pro forma financial information assuming that its previously announced acquisition of Pacific Western Extruded Plastics Company (PWPipe) took place on January 1, 1998. The pro forma information is included to provide insight into what the operating results might have been if the two businesses had been combined in prior periods. A summary of the unaudited results for the first quarter ending March 31, 2000 and 1999 is set forth in the following table:

Income Statement Information

(In thousands, except for per share amounts)

The pro forma financial information assumes that the acquisition of PWPipe took place on January 1, 1998, consistent with pro forma information included in the notes to the Company’s 1999 financial statements included in its March 2000 Form 10-K filing and includes certain adjustments to reflect what the Company will experience on an ongoing basis. A summary of the pro forma financial information for the three month period ending March 31, 1999 is set forth in the following table:

Pro Forma Income Statement Information

(In thousands, except for per share amounts)

Included in the pro forma financial information for the three month period ending March 31, 1999 are certain nonrecurring charges. These nonrecurring items reduce historical and pro forma net income by approximately $800,000 for the three months ended March 31, 1999. Absent these nonrecurring changes, pro forma basic and diluted earnings per share would be $0.33 and $0.24, respectively, for the three months ended March 31, 1999.

William H. Spell, CEO, stated, "We are extremely pleased with the record operating results for the first quarter. Our gross margins continue to be very strong, reflecting the impact of the significant capacity and process improvement investments that we have made over the last several years as well as the very favorable industry conditions. The supply and demand of PVC resin has remained in balance and the demand for pipe remains strong. We are also very pleased with the rapid and seamless integration of the PWPipe and Eagle Pacific businesses. We are continuing to recognize the synergies from that acquisition.

"Our strong operating results are permitting us to implement and continue our strategy of growth, increased efficiency and reduced debt. We believe that this strategy has and will continue to position us well for the future."

Eagle Pacific will hold a conference call on April 25, 2000 at noon (Central Daylight Time) to discuss results for the first quarter. Interested parties may call the following number a few minutes before noon to participate in the call: 1-888-674-1998.

Eagle Pacific Industries, Inc. is a leading extruder of PVC pipe and polyethylene pipe and tubing products. The Company operates nine manufacturing facilities in the midwestern and western United States. Eagle Pacific Industries’ common stock is traded on the Nasdaq SmallCap Market under the symbol "EPII".

Statements that Eagle Pacific Industries, Inc. may publish, including those in this announcement, that are not strictly historical are "forward looking" statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and these and/or any number of other corporate developments may cause results to differ materially from those expected, including those risks described from time to time in Eagle Pacific Industries, Inc.’s SEC filings, including quarterly reports on Form 10-Q and annual reports on Form 10-K.

EAGLE PACIFIC INDUSTRIES, INC.

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts

			THREE MONTHS
			ENDED MARCH 31,
			2000	1999
NET SALES			$92,599	$19,586
COST OF GOODS SOLD			63,287	14,145
Gross profit			29,312	5,441
OPERATING EXPENSES:
Selling expenses			7,167	2,542
General and administrative expenses			3,700	670
			10,867	3,212
OPERATING INCOME			18,445	2,229
OTHER EXPENSES (INCOME):
Interest expense			3,652	542
Other, net			(63)	-
Nonrecurring expenses			0	1,325
			3,589	1,867
INCOME BEFORE INCOME TAXES			14,856	362
INCOME TAX EXPENSE			5,690	32
NET INCOME			9,166	330
PREFERRED STOCK DIVIDENDS			-	201
NET INCOME APPLICABLE TO COMMON STOCK			$9,166	$129
NET INCOME PER COMMON SHARE:
Basic			$1.21	$.02
Diluted			$.87	$.02
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic			7,585	6,720
Diluted			10,493	7,106

EAGLE PACIFIC INDUSTRIES, INC.

CONDENSED BALANCE SHEETS (UNAUDITED)

(In thousands, except for shares and per share amounts)

ASSETS	MARCH 31, 2000	DEC. 31, 1999
CURRENT ASSETS:
Cash and cash equivalents	$ 1,600	$ 2,669
Accounts receivable, net	38,171	26,159
Inventories	57,370	45,777
Deferred income taxes	887	2,487
Other	371	233
Total current assets	98,399	77,325
Property and equipment, net	73,828	74,895
OTHER ASSETS:
Deferred financing costs, net	4,889	5,300
Land held for sale	1,137	1,346
Goodwill, less accumulated amortization of $621 and $593, respectively	3,846	3,874
Deferred income taxes	1,146	4,901
Other	2,668	146
	13,686	15,567
TOTAL ASSETS	$ 185,913	$ 167,787
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Borrowings under revolving credit facility	$ 43,468	$ 30,558
Current maturities of long-term debt	10,432	10,441
Accounts payable	19,011	22,347
Accrued liabilities	10,785	12,165
?Total current liabilities	83,696	75,511
OTHER LONG-TERM LIABILITIES	2,604	79
LONG-TERM DEBT, less current maturities	35,000	37,500
SENIOR SUBORDINATED DEBT	27,050	26,752
COMMITMENTS AND CONTINGENCIES	-	-
REDEEMABLE PREFERRED STOCK; 8% cumulative dividend; convertible; $1,000 per share liquidation preference; $.01 par value; authorized, issued and outstanding none and 10,000, respectively	-	-
STOCK WARRANTS	5,887	5,887
SHAREHOLDERS’ EQUITY:
Series A preferred stock; 7% cumulative dividend; convertible; $2 per share liquidation preference; no par value; 2,000,000 shares authorized; issued and outstanding none and 18,750 shares, respectively	-	38
Undesignated stock, $.01 par value; 14,490,000 shares authorized; none issued and outstanding	-	-
Common stock; $.01 par value; 30,000,000 shares authorized; issued and outstanding 7,826,588 and 7,721,214 shares, respectively	78	77
Class B Common stock, $.01 par value; 3,500,000 shares authorized; none issued and outstanding	-	-
Additional paid-in capital	39,425	39,013
Unearned compensation	(569)	(587)
Notes receivable from officers and employees on common stock Purchases	(1,237)	(1,296)
Accumulated deficit	(6,021)	(15,187)
Total stockholders’ equity	31,676	22,058
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$ 185,913	$ 167,787