Cereplast Issues 12 Month Investor Update

‘Green’ Plastics Manufacturer Achieves Significant Milestones that Position Company for Solid Growth in 2010

EL SEGUNDO, Calif., Jul 13, 2010 (BUSINESS WIRE) — Cereplast, Inc. /quotes/comstock/15*!cerp/quotes/nls/cerp (CERP 3.25, +0.05, +1.56%) a leading manufacturer of proprietary bio-based, sustainable plastics, today highlighted several significant accomplishments that have been achieved in the past 12 months.

In April 2009, Cereplast founder and CEO Frederic Scheer began to take measures to cut costs, improve efficiencies and position the Company for growth. Over the past 12 months under his leadership, the Company has achieved the following results:

— Cut costs by over 55% in 2009 and by 31.2% in the first quarter of 2010, reducing cash burn rate from about $1.2 million per month to $0.2 million per month;

— Increased gross margin to 12.3% in 2009 from 1.8% in 2008, and to 31.6% in first quarter 2010 from 17.4% in first quarter 2009;

— Completed build out at new state-of-the-art facility in Seymour, Indiana, and commenced bioplastics production;

— Raised over $13 million in equity capital from qualified institutions and accredited investors;

— Restructured sales and marketing force with key new additions;

— Successfully up-listed the company’s shares to the NASDAQ Capital Market;

— Entered into agreements to ship 16 million pounds of bioplastic resins in 2010, representing a 400% increase in shipments over 2009;

— Introduced 11 new grades of Cereplast Compostables(R) resins for wide range of plastics applications from tableware and cutlery to toys and healthcare/hygiene products, bottles/containers, bags and many other items;

— Entered into new distribution agreements in Asia, South America, and the U.S., including an agreement with Ashland Distribution, a commercial unit of Ashland Inc. /quotes/comstock/13*!ash/quotes/nls/ash (ASH 47.90, -0.83, -1.70%) , and expanded distribution agreements in Europe.

For 2010, the Company is now positioned to achieve operational profitability in the fourth quarter and estimates that revenues this year could increase more than 190% over last year to between $8 million to $10 million. Additionally, Cereplast is beginning to receive the attention it deserves as a market leader in its industry and has received national media attention from outlets including CNN, Dow Jones, MarketWatch, and affiliate CBS stations. The Company expects to complete the development of its breakthrough technology for new algae-based resins and offer a first grade of Cereplast Algae Plastics(R) for commercial use by end of year. In addition, the Chairman and CEO of Cereplast, Frederic Scheer, has been appointed 2010 BioPlastics Council Chair by The Society of the Plastics Industry, Inc. (SPI) BioPlastics Council.

“We have achieved a number of significant milestones in the past 12 months. The Company is now well positioned for the accelerated growth we forecast as the demand for our bioplastic resins continues to increase,” said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. “With the opening of our new facility in Indiana, we are in a stronger position to serve our growing customer base in Europe, Asia, South America and the United States. We estimate this facility to have production capacity of approximately 80 million pounds of bioplastic resin per year once operating at full capacity. This will allow us to deliver stronger financial performance from increased operational efficiencies and capacity.”

Concluded Mr. Scheer, “We continue to build on the momentum of the last 12 months and the new doors opened to us so far in 2010. Consumers increasingly demand economical and environmentally sound solutions to traditional plastics. We are ready to fulfill this demand by working with plastics manufactures around the world as they seek sustainable, ‘green’ solutions for their plastics products and applications.” He added, “With the successes we have achieved in a challenging economic climate, we are highly confident that this Company will attain or exceed the goals we have set forth for 2010.”

SOURCE: Cereplast, Inc.

Comments are closed.