Abstract: An apparatus for cutting and heat sealing a pair of overlying heat-sealable panels together comprises a conveyer for moving a pair of superimposed webs of panel material along a linear path and into a cutting and sealing station. A combined cutting and sealing die assembly includes a cutting die for cutting the panels out of the webs and a sealing die for sealing peripheral edges of the superimposed panels together. A heater element is mounted on each of the dies to heat them to their respective cutting and sealing temperatures with the dies being thermally insulated to prevent heat transfer therebetween. A plurality of spring clips attach the dies together to permit thermal expansion of the cutting die relative to the sealing die.