HAWTHORNE, Calif.--(BUSINESS WIRE)--June 27, 2006--In recent weeks, the cities of Oakland and Santa Monica have voted to ban non-recyclable disposable food serviceware and instead require all city facilities and food vendors to use disposable food serviceware that is biodegradable or compostable. Cereplast Inc.(OTCBB:CERP), producer of resins made from renewable and biodegradable sources, which are alternatives to petroleum-based plastics, has been an active supporter of these efforts and is already manufacturing and selling the base resin necessary to produce the recyclable and compostable food service containers.

In the Bay Area, Cereplast provided testimony in favor of the use of green packaging in the city of Oakland. The company has already been working with the Oakland Coliseum and the City of San Francisco to replace traditional plastic products with products made from Cereplast's renewable plastics. In addition, Frederic Scheer, Cereplast's president, was quoted in a recent Los Angeles Times article about the Santa Monica ban. Cities in California and throughout the West have already moved in this direction, including Berkeley, Huntington Beach, Malibu, Newport Beach and Portland (OR). Other environmentally-conscious municipalities, such as Baltimore, Maryland, are also considering similar ordinances.

Scheer believes that the move to "green plastics" is the right thing environmentally, and that the high price of petroleum is helping to accelerate the trend. In the June 24th Los Angeles Times article he said, "With a barrel of crude at $75, everyone all of a sudden is becoming greener." The Los Angeles Times article noted that bans such as the one in Santa Monica are speeding a dramatic conversion in the plastics industry. Cereplast's BPI-certified resins use a patented and proprietary manufacturing process that incorporates starch and other biodegradable components, including PLA from NatureWorks(R) LLC.

Cereplast recently partnered with Duni Corporation to develop a line of thermoformed food containers that meet Biodegradable Products Institute (BPI) standards for compostability and biodegradability, offering these municipalities and businesses another environmentally-friendly alternative.

"Responsible municipalities, such as Oakland and Santa Monica are leading the way in seeking alternatives, both as a response to increased petroleum costs and as a reflection of consumer and industry demand to reduce the impact on the environment," concluded Frederic Scheer, President and CEO of Cereplast.

About Cereplast

Cereplast, Inc. (OTCBB:CERP) designs and manufactures proprietary bio-based, renewable plastics which are used as substitutes for petroleum-based plastics in all major converting processes -- such as injection molding, thermoforming, blow molding and extrusions -- at a pricing structure that is competitive with petroleum based plastics. Cereplast's uniquely formulated resins are certified biodegradable and compostable by BPI (Biodegradable Products Institute). Learn more at www.cereplast.com.

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Copyright Business Wire 2006

Cereplast, Inc.

Cereplast, Inc.

Cereplast, Inc. (OTCBB:CERP) designs and manufactures proprietary starch-based, renewable plastics. Cereplast has developed a breakthrough technology to produce proprietary bio-based resins which are used as substitutes for petroleum-based plastics offering price stability and competitive costs compared to traditional resins. Cereplast resins can be used in all major converting process such as injection molding, thermoforming, blow molding and extrusions. Made from renewable resources such as corn and potato starch, Cereplast resins are certified biodegradable and compostable by BPI (Biodegradable Products Institute) and have comparable or superior performance characteristics to conventional plastics and return to nature quickly and safely. Learn more at www.cereplast.com.

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