HAWTHORNE, Calif.--(BUSINESS WIRE)--Aug. 3, 2006--Cereplast(TM), Inc. (OTCBB:CERP), a producer of proprietary bio-based resins used as a substitute for petroleum-based plastics, reports that the company is featured in today's front page of the Money section of USA TODAY. The article explains that biodegradable service ware manufactured from alternative plastics have experienced tremendous growth and widespread market acceptance. Bio-plastics are no longer novelty niche items but the answer to a growing demand for more sustainable and natural packaging. The article further explains that products manufactured using Cereplast resins are experiencing increased market penetration and can be found at major retailers around the country.

The article can be found in the Money section of the August 3, 2006 USA TODAY or online at: http://www.usatoday.com/money/industries/food/2006-08-02-eco-picnic- usat_x.htm?POE=click-refer (due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists).

About Cereplast, Inc.

Cereplast, Inc. has developed a breakthrough technology to produce proprietary bio-based resins which are used as substitutes for petroleum-based plastics in a variety of applications, including the manufacture of food service items such as utensils, plates, cups, and straws. Made from renewable resources such as corn and potato starch, Cereplast resins are bio-based, biodegradable and compostable and have comparable or superior performance characteristics to conventional plastics, and are sold at prices that are competitive with plastics. 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.

Portions of the above news release include excerpts from an article reprinted with permission of USA Today, Copyright Gannett Satellite Information Network, Inc. originally published in USA TODAY August 3rd, 2006.

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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