| Cereplast to Benefit from Federal Government Decision Favoring Bio-Based Plastics |
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HAWTHORNE, Calif.--(BUSINESS WIRE)--Sept. 18, 2006--Cereplast(TM), Inc. (OTCBB:CERP), a producer of proprietary bio-based resins used as a substitute for petroleum-based plastics, reports a significant development that accelerates bio-based plastics transition from the realm of novelty item to mainstream consumer product. The federal government has announced a major policy directive that designates products made from bio-based plastics as a preferred purchasing item. This means that over the course of the coming years, governmental agencies across the country are required to give preference to purchasing certain items made from bio-based plastics rather than petroleum based plastics. The USDA, after more than two years of research and testing, has issued a list of 20 bio-based products (of what will eventually become more than 1500 items) to be designated as "preference items" for procurement by federal agencies. Among those twenty items, three are currently being made from bio-based resins. These are: disposable cutlery, plastic films (used for compostable bags) and plastic packaging containers. Cereplast makes bio-resins for each of these product categories, and is already selling products to state and local agencies, in California, Oregon, Washington, Maryland and other areas around the country. The new policy directive from the federal government is seen as dramatically accelerating demand for these products. Last year alone, the federal General Services Administration spent more than $23 billion dollars to purchase items for the federal government's use. Frederic Scheer, Cereplast's CEO, said "this is a significant step for our industry's development, moving bio-based resin made products onto the fast track. The federal government is the country's largest purchaser of these types of goods. While there is no way to quantify the amount of revenue increase we will see as a result of these new federal procurement policies, given that we are one of the country's top three providers of the base material, we are expecting that the increase in demand should be substantial, as this program jump starts the substitution of petroleum based plastics with bio-based plastics in many industrial sectors around the globe. A large majority of the converters using our resins are registered in the Federal procurement system and this new directive will certainly enhance their sales." This program is significant from several perspectives. It brings bio-based products to the forefront of the country's consciousness, it helps farmers create new markets for their crops and it initiates concrete steps toward reduction of global climate change. Building on long years of working toward these same goals, Cereplast was recently granted the use of the Biodegradable Products Institute's (BPI) logo certifying that products made from Cereplast's resins are 100% biodegradable-compostable, returning to nature in less than 180 days as per ASTM 6400 when sent to a commercial composting facility. As bio-based products make their way to the forefront of mainstream American consciousness, BPI's Executive Director, Steve Mojo, extolled Cereplast's suitability for these goals, saying: "The Biodegradable Products Institute has been a strong supporter of the USDA's efforts to expand the use of renewable content. Additionally, by requiring that disposable bio-based items, such as containers, cutlery and bags, be compostable, the Federal government is helping to set the stage for reductions in global warming gases." Cereplast recently received BPI's certification for its bio-based plastic extrusion coating resin to make Solo Cup's first truly bio-degradable hot cup. Bookmark this page!      |
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