HAWTHORNE, Calif.--(BUSINESS WIRE)--Oct. 10, 2006--Two new state environmental laws are providing opportunity and momentum for Cereplast(TM), Inc. (OTCBB:CERP), a producer of proprietary bio-based resins used as a substitute for petroleum-based plastics. Assembly Bill 2147, the "truth in labeling" act, and Assembly Bill 32, the Global Warming Solutions Act, are expected to encourage the use of biodegradable and compostable plastics.

To provide consumers with accurate, useful information, the "truth in labeling" law mandates that environmental marketing claims for compostable plastic food or beverage containers must follow rigorous, uniform and recognized standards. Plastic containers bearing the terms "biodegradable," "compostable" and "degradable" must meet current standard specifications established by the American Society for Testing and Materials (ASTM).

At the state Senate hearings by the Committee on Environmental Quality, Frederic Scheer, president and CEO of Cereplast, testified in strong support of Assembly Bill 2147 along with other business and community leaders at the forefront of the sustainability movement.
There was broad-spectrum stakeholder presence including representatives from cities, counties, businesses and entrepreneurs. They all shared an interest in reducing the amount of waste going to landfills by diverting that waste flow from trash to compost. Assembly Bill 2147 was approved on September 20.

"These recent developments will clear up the confusion that exists today," said Steve Mojo, Executive Director of the Biodegradable Products Institute (BPI). "Food and beverage container plastics will carry clear labeling that ensures they meet current ASTM standards by disintegrating and biodegrading swiftly and safely in a commercial or municipal composting facility. Such plastics will be a critical part of California's overall effort to conserve natural resources and address the challenge of global warming."

Frederic Scheer said, "No longer will a competitor be able to say their product is bio-degradable, when in fact it simply breaks down into smaller pieces of plastic. We expect that the upshot of recent legislation will be to legitimize and codify the compostable plastic market. This should in turn accelerate the acceptance and use of these products, which is good for the planet and good for our company."

Cereplast has recently added 10,000 square feet of manufacturing capacity to meet expected customer demand. With a new production line nearing completion, the company is currently on track to become the second largest producer of bio-based resins in the country. The new line will bring the company's total production capacity to 40 million pounds of resin per year when finished.

About 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 processes, 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.

About Biodegradable Products Institute

BPI is a multi-stakeholder group, involving people and organizations that produce, use or recover biodegradable plastic products. It promotes the growth of biodegradable plastics through education, use of scientifically-based standards and cooperative efforts with organizations in Europe and Asia.

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.

More from Cereplast, Inc.