The paper presents simulations of mechanical properties of compressed expanded graphite. To model the stress and strain states of compressed expanded graphite, a hyperelastic material model formulated by the Blatz-Ko was adapted. The idea of using this model resulted from the assumptions that compressed expanded graphite exhibits similar mechanical properties to polyurethane foam with high density. The material constant of the Blatz-Ko model was determined by numerical calculations where deformation energy equation was parameterized with the shear modulus. Such material model used in a compressed expanded graphite simulation was experimentally validated. Subsequently, the Blatz-Ko model was used in a numerical simulation of the graphite-metallic structure in the form of a spiral wound gasket which is composed of metallic and elastic tapes. This structure was subjected to an optimization process which included the reduction of stress in the elastic graphite tape obtaining the appropriate axial stiffness of the gasket. In the final stage, the optimal design of the gasket was experimentally tested. The experimental results were compared with the data obtained numerically, which allowed to verify the adapted material model and boundary conditions of the numerical gasket model.