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“Truth in Labeling” Law to Protect Compostable and Biodegradable Markets; Spur Demand for Bio-based Plastics

HAWTHORNE, Calif. & NEW YORK--(BUSINESS WIRE)--Cereplast™, Inc. (OTCBB:CERP), a producer of proprietary bio-based resins used as a substitute for petroleum-based plastics, reports a significant development that tightens truth in advertising regulations around the use of the terms “biodegradable” and “compostable”. The Governor Arnold Schwarzenegger’s signing into law CA AB 32 is expected to encourage the use of biodegradable and compostable plastics.

By mandating truth-in-advertising labeling on compostable and biodegradable containers and plastic bags, the legislation labeling plastic food or beverage containers as "biodegradable," "degradable," or "compostable," unless the container meets the current ASTM standard for the term used on the label.

Frederic Scheer, Cereplast’s Chairman and CEO, was called to the State’s capital to speak before the Senate Committee. Along with other business leaders who are at the forefront of the sustainability movement, the committee heard testimony from a broad spectrum of stakeholders including cities, counties, business and entrepreneurs who share an interest in reducing the amount of waste clogging our landfills by diverting that waste flow from trash to compost.

Steve Mojo, Executive Director of the Biodegradable Products Institute (BPI), said “This legislation will clear up the confusion that exists today.” Plastics that meet ASTM D6400 will disintegrate and biodegrade swiftly and safely in a professionally managed commercial or municipal composting facility. Diversion of food scraps from landfills to compost facilities should become a critical part of California’s overall effort to reduce global warming gases as well as helping to return nutrients to the soils,” Mojo added

Speaking about the near term effects of this legislation, Mr. Scheer, Cereplast’s CEO said: “We expect that the upshot of this legislation will be to legitimize and codify these markets and these marketing terms. 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 this should in turn accelerate the acceptance and use of the products so labeled, which is good for the planet and good for our company,” concluded Scheer.

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 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

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. To learn more, visit the BPI website at http://www.bpiworld.org