HAWTHORNE, Calif.--(BUSINESS WIRE)--Aug. 15, 2006--Cereplast, Inc. (OTCBB:CERP), producer of proprietary bio-based resins, today reports that the company has been featured in an article in the recent issue of Plastics News, the industry's premier trade publication. The article chronicles the company's growth over the past year, citing the installation of two new production lines and the company's signing of supply agreements with industry giants as indications of commercial acceptance of the bio-resin sector.

Noting that the growth in demand for the company's bio-based resins has led to the installation of two additional production lines, with a third currently being installed, Cereplast's Chairman and CEO, Frederic Scheer is quoted in the article, saying, "We're going to need more capacity to handle demand for our material," he said, adding that he expects the market for renewable plastic to grow at least 20 percent annually for the next several years.

"I expect at some point that oil prices will go down," he said. "But people now realize that for single-use, disposable applications, it makes more sense to use products that are made with renewable resources and to save oil for other applications.

"People are aware of that and aware of problems with global warming, and they're concerned," Scheer added. "In that sense, our value proposition is very appealing, and we expect to do a substantial amount of business."

The article further notes that the demand for bio-resins is not a novelty or a niche market, but is an actively developing technology that has moved into the mainstream as bio-resins are displacing traditional petroleum based resins across many sectors:

"Cereplast has worked to capitalize on a growing interest in bioresins, spurred by a jump in prices of standard oil-based resins. Commercially, Cereplast's big move came in May, when the firm announced that Atlanta-based thermoformer Duni Corp. (an $850 million global producer of plastics packaging) would use Cereplast resins to make compostable food packaging for restaurants and consumer products. In February, Cereplast also filed for two new patents on starch-based and nanomaterial-based resins."

In addition, Cereplast announced last week that MeadWestvaco (NYSE:MWV) is using Cereplast's resins to manufacture coated paperboard that Solo Cup has turned into the industry's first biodegradable Hot Cup. This is the first hot beverage container to have been granted use of BPI's (Biodegradable Products Institute) logo, certifying that the cup will decompose in 180 days or less in a commercial composting facility. This industry partnership is yet another of Cereplast's high profile industry alliances, showing that CERP is leading the way in the green plastics sector.

The article concludes on a high note for Cereplast, noting that Cereplast went public in over-the-counter trading in November. The stock opened at 20 cents per share and was at around $1 in late trading Aug. 2.

About Cereplast

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 http://www.cereplast.com

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are 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 the Company and its operations, markets, product and distributor performance; the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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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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