Sales Growth in Line with 2008 Plan

Tag : plastic extrusions
of 2008. For the first half of 2008, Cereplast sales grew to$1,934,177, a 104% increase over the comparable period of 2007.

"We are very encouraged by the continuing expansion of our customerbase," commented Frederic Scheer, Chairman and CEO of Cereplast,"and by the growth in established customer demand. The recentincreased price of fossil fuel resins is significantly enhancingthe competitiveness of our resins, making Cereplast resins ahighly-viable economic alternative. Overall, commercialization ofboth our Compostables(R) and new Hybrid Resins(R) families hasprogressed right in line with our budget for the first half of theyear. And our second half outlook is very strong, in line with our2008 plan as well as projections of the industry analysts whofollow Cereplast."

In the second quarter, as a key investment in its productcommercialization capability, Cereplast began implementation of itsfirst application development and resin testing laboratory inHawthorne, California. When completed by the end of August, 2008,this facility will enable Cereplast to conduct all standard productdevelopment and qualification testing in-house, greatly speeding upthe development cycle for new resin development and enhancingtechnical support to customers.

"Cereplast Compostables(R) and Cereplast Hybrids(R) resins arebecoming a daily reality for major converters around the country,and Cereplast is starting to reap the rewards of several years offocused effort. This will translate in our future performancefigures," concluded Woelfel.

"While I am pleased with the sales development in the past quarter,I am looking forward to the next six months for a very significantacceleration in Cereplast's sales volumes," said Randy Woelfel,Cereplast's President and Chief Operating Officer. "Several majorprojects are coming to fruition. Among the highlights for the pastquarter are:

-- As of June 30, 2008, more than 120 companies have requested andbeen provided with samples of Cereplast bioplastic resin for use inmore than 112 different product applications. Most importantly, thenumber of commercialized products using Cereplast resin has grownto more than 85, a 27% increase from the first quarter 2008.

-- Canguru Embalagens, a leading Brazilian producer of packagingmaterials, will launch this month the first line of compostablefood service products in Brazil under the brand "Bio-Zanatta,"representing a several million pound opportunity for Cereplast.

-- Two leading US based manufacturers of high quality, single usefood service products for consumer and commercial markets willlaunch new lines of compostable products before year-end.Annualized sales volume for these new lines could be in the rangeof $3,000,000 to more than $5,000,000 within a year of launch.

-- Kelmar Creations is launching Ecotainable(R) compostablecontainers and packs for the horticulture market.

-- Dentek is commercializing a line of dental hygiene productsbased upon Cereplast Biopropylene(R).

-- Cereplast's Nat-Ur division signed sourcing agreements withseveral major quick service restaurant chains in the secondquarter, including Jack in the Box and Chipotle, representingmulti-million pound opportunities.

-- Cutlery, cups and straws made from Cereplast resin were used atthe ESPY awards in Los Angeles on July 16th. Sports events,festivals, and venues such as PNC Park in Pittsburg, whichimplemented compostable foodservice products in April, represent asignificant opportunity for the Nat-Ur division.

-- Nat-Ur is also featured now in Sysco Corporation's "Green"Catalogue as well as college campus lunchrooms such as theUniversity of Washington

In addition to these significant projects for both ourCompostables(R) and Hybrid Resins(R) lines, we are seeingsubstantial sales growth and forward projections from suchwell-established customers as: Pace Industries, Inc., makers ofhigh quality extruded sheet for the print signage, gift and loyaltycard, and horticultural tag markets; Genpak, whose HarvestCollection(R) was the first Cereplast Compostables(R) resin-basedfood service ware line to go to market; and Cell-O-Core, makers ofCello-Green(R) biodegradable beverage straws. The combination ofall these projects should make 2008 a year of continuing successfor Cereplast, as previously forecasted."

"Beyond 2008," Scheer added, "our joint development agreements withsuch major market and brand leaders as: Group Danone - for thedevelopment of bio-based food packaging; and PSA Peugeot-CitroenGroup - for the introduction of sustainable automotive bioplastics,will drive substantial upside growth for our business. Consumptionof traditional petroleum based plastics by our various jointdevelopment agreement partners alone represents several hundredmillion pounds of potential for our materials over the next threeyears."

Supporting this triple-digit growth outlook for Cereplast are majorinvestments in new capacity and enhanced operations. Cereplast'snew Hybrid Resins(R) facility in Seymour, Indiana, with an initialcapacity of 50 million pounds, remains on-track for start up in thethird quarter of 2008. In parallel, a project is underway at theHawthorne, California plant to enhance the operability and costefficiency of the Compostables(R) manufacturing lines, also by theend of the third quarter of 2008.

About Cereplast

Cereplast, Inc. (OTCBB:CERP) designs and manufactures proprietarybio-based, sustainable plastics which are used as substitutes forpetroleum-based plastics in all major converting processes - suchas injection molding, thermoforming, blow molding and extrusions -at a pricing structure that is competitive with petroleum-basedplastics. On the cutting-edge of bio-based plastic materialdevelopment, Cereplast now offers resins to meet a variety ofcustomer demands. Cereplast Compostables(R) resins are ideallysuited for single use applications where high bio-based content andcompostability are advantageous, especially in the food serviceindustry. Cereplast Hybrid Resins(R) products combine highbio-based content with the durability and endurance of traditionalplastic, making them ideal for applications in industries such asautomotive, consumer electronics and packaging. Learn more atwww.cereplast.com.

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Matters discussed in this press release contain forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995. When used in this press release, the words"anticipate," "believe," "estimate," "may," "intend," "expect" andsimilar expressions identify such forward-looking statements.Actual results, performance or achievements could differ materiallyfrom those contemplated, expressed or implied by theforward-looking statements contained herein. These forward-lookingstatements are based largely on the expectations of the Company andare subject to a number of risks and uncertainties. These include,but are not limited to, risks and uncertainties associated with:the impact of economic, competitive and other factors affecting theCompany and its operations, markets, product, and distributorperformance, the impact on the national and local economiesresulting from terrorist actions, and U.S. actions subsequently;and other factors detailed in reports filed by the Company.