<PAGE>
                                                                   EXHIBIT 99.01
                                                                   -------------

INTERNAL REVENUE SERVICE                              DEPARTMENT OF THE TREASURY
P.O. BOX 2508
CINCINNATI, OH 45201

Date: JUL 29 2002                              Employer Identification Number:
                                                58-1388387
CARAUSTAR  INDUSTRIES INC                      DLN:
C/O CARL R BOEHM                                17007052033022
101 N TRYON ST STE 1900                        Person to Contact:
CHARLOTTE, NC 28246-0000                        BOBBIE M RUSH      ID# 75308
                                               Contact Telephone Number:
                                                (877) 829-5500
                                               Plan Name:
                                                CARAUSTAR INDUSTRIES INC SAVINGS
                                                PLAN
                                               Plan Number: 002
Dear Applicant:

     We have made a favorable determination on the plan identified above based
on the information you have supplied. Please keep this letter, the application
forms submitted to request this letter and all correspondence with the Internal
Revenue Service regarding your application for a determination letter in your
permanent records. You must retain this information to preserve your reliance
on this letter.

     Continued qualification of the plan under its present form will depend
on its effect in operation. See section 1.401-1(b)(3) of the Income Tax
Regulations. We will review the status of the plan in operation periodically.

     The enclosed Publication 794 explains the significance and the scope of
this favorable determination letter based on the determination requests
selected on your application forms. Publication 794 describes the information
that must be retained to have reliance on this favorable determination letter.
The publication also provide examples of the effect of a plan's operation on
its qualified status and discusses the reporting requirements for qualified
plans. Please read Publication 794.

     This letter relates only to the status of your plan under the Internal
Revenue Code. It is not a determination regarding the effect of other federal
or local statutes.

     This determination letter is applicable for the amendment(s) executed
on 02/06/2002.

     This letter considers the changes in qualification requirements made by
the Uruguay Round Agreements Act, Pub. L. 103-465, the Small Business Job
Protection Act of 1996, Pub. L. 104-188, the Uniformed Services Employment
and Reemployment Rights Act of 1994, Pub. L. 103-353, the Taxpayer Relief Act
of 1997, Pub. L. 105-34, the Internal Revenue Service Restructuring and Reform
Act of 1998, Pub. L. 105-206, and the Community Renewal Tax Relief Act of 2000,
Pub. L. 106-554.

     This letter may not be relied on with respect to whether the plan
<PAGE>
                                      -2-


CARAUSTAR INDUSTRIES INC

satisfies the requirements of section 401(a) of the Code, as amended by the
Economic Growth and Tax Relief Reconciliation Act of 2001, Pub L. 107-16.

     The requirement for employee benefits plans to file summary plan
descriptions (SPD) with the U.S. Department of Labor was eliminated effective
August 5, 1997.  For more details, call 1-800-998-7542 for a free copy of the
SPD card.

     We have sent a copy of this letter to your representative as indicated in
the power of attorney.

     If you have questions concerning this matter, please contact the person
whose name and telephone number are shown above.



                                            Sincerely yours,


                                            /s/ PAUL T. SHULTZ

                                            Paul T. Shultz
                                            Director,
                                            Employee Plans Rulings & Agreements


Enclosures:
Publication 794

