Public Relations MeetingJuly 14, 2006

Cereplast, Inc. (CERE: “from cereal”; PLAST: “from plastic”) is aleading specialty manufacturer of proprietary bio-resins

Our philosophy meets Sustainability with its three (3) core components– Environmental– Economic– Social

Cereplast has developed two distinct families of bio-resins– Cereplast Compostables™– Cereplast Hybrid Resins™

Cereplast Overview

Bio-Plastic vs. Conventional PlasticCereplast Compostable ResinCertified Biodegradable & Compostable

90% + Bio‐basedContent

Densitygreater than 1.25

Runs on equipment at lower temperatures

Heat deflectiontemperature of 120‐130F

CereplastHybrid ResinRenewable & Sustainable

50% Bio‐based Content

Density of 1.04

Runs on equipment at lower temperatures

Heat deflectiontemperature of 175‐ 200F

ConventionalPetroleumPlasticNOT ‐Biodegradable‐Compostable‐Renewable ‐Sustainable

0% Bio‐basedContent

Density between 0.9‐0.99

Runs on equipment at higher processing temperatures

Heat deflectiontemperature above 200F

CEREPLAST COMPOSTABLES™for single use disposables

CEREPLAST HYBRID RESINS™for durable applications

CEREPLAST COMPOSTABLES™

Cereplast Compostables™Overview

Replaces nearly 100% of the petroleum-based products used in traditional plastics.

Starch-based, made from corn, wheat, tapioca and potato starches that primarily come from the Midwest.

Certified as biodegradable and compostable in the United States and Europe, meeting BPI (Biodegradable Products Institute) standards for compostability (ASTM 6400 D99 and ASTM 6868), and European Bioplastics standards (EN 13432).

Commercial Resin Applications

EXTRUSION-THERMOFORMING Plates, containers, packagingINJECTION MOLDING Utensils, cups, containersEXTRUSION BLOW MOLDING Bottles, containersBLOWN FILM Food packaging wrap,

bags, can linersPROFILE EXTRUSION StrawsEXTRUSION COATING Paper coatings

CEREPLAST COMPOSTABLES™

Extrusion-Thermoforming Grades

CP-TH-01C: standard grade created for extrusion-thermoformingCP-TH-15000C greater impact strength and the addition of TiO2 for whiter productCP-TH-6000C: improved HDT of the final product to 155F.

Processing Guidelines are available for the resins

Injection Molding Grades

CP-INJ-01C: standard grade created for injection molding CP-INJ-1001EZC higher flow properties CP-INJ-13C: greater flexibility ,recommended for low temperature applications

Processing Guidelines are available for the resins

CEREPLAST COMPOSTABLES™CHARACTERISTICS

Superior Performance CharacteristicsTop quality performance, including rigidityHigher thermo-resistance than PLAGreater strength than PLANot brittle

Environmental CharacteristicsBiodegradable & Compostable

– ASTM 6400- BPI compliantBio-based Content

– ASTM 6866-04a - +90% (Radio-Carbon process)

GMO Analysis– GENESCAN -PCRQ: NEGATIVE

FDA Compliant– KELLER & HECKMAN Compliance

OpinionEN 13432 European Standard

– European-Bioplastics organization

Managing The Carbon Cycle“Cradle to Cradle”

Sanitary Landfill

Oil or GasDrilling Exploitation

Manufacturing

CO2METHANE

10 Million Years

COMPOSTING

90 to 180 Days

Managing The Carbon Cycle“Cradle to Cradle”

CO2

10 Million Years

COMPOSTING

CEREPLAST COMPOSTABLES™LIFE CYCLE ASSESSMENT

BEES ANALYSIS– USDA & CONGRESS

FINDINGS– Resin & Raw material transportation– Fossil fuels used in production: depletion of natural

resources– Global warming Potential: 3.15C02E

CEREPLAST HYBRID RESINS™

• High bio-based content

• Proprietary compounds incorporating traditionalpetroleum based resins with Cereplastproprietary basket of starches

• Targeted towards durable good applications,where end users want a sustainable productoption

CEREPLAST HYBRID RESINSTM

What are Cereplast Hybrid ResinsTM?

Bio-based plastic resins containing up to 50% starch from natural, renewable, and sustainable resources, such as:– Corn – Tapioca – Wheat – Potato

Lesser Dependence on Petroleum Plastic is made of fossil fuels

-30%-20%-10%

0%10%20%30%40%50%60%70%

2001 2002 2003 2004 2005 2006 2007

YOY

% C

hang

e

Year

Resin Prices vs Crude

PP LDPE HDPE Crude

Biodegradability of Cereplast Hybrid ResinsTM

Renewable and Sustainable alternative to conventional plastic

Cereplast Hybrid ResinsTM meet the requirements for toxicity set by ASTM D 6400-04 specifications

We do not claim biodegradable and compostable as the final result will not be only biomass, water and CO2 per ASTM D 6400-04

The product will breakdown containing PP phase

Bio-PropyleneTM

• CP-Bio-PP-50 Injection Molding Standard• CP-EXP-Bio-PP-265-003 Improved impact resistance• CP-EXP-Bio-PP-265-001 Thermoforming- impact resistant

CEREPLAST HYBRID RESINSTM

What is BiopropyleneTM?

BiopropyleneTM is a patented/proprietary Cereplast Hybrid ResinsTM

Contains polypropylene, starch, a compatibilizerfor starch and PP, and a blend of selective plasticizers to facilitate starch processing Made via reactive twin-screw extrusion processTwo-phase morphology: PP is the continuous phase with a dispersed starch phase.

BiopropyleneTM Physical Properties vs. Polypropylene

Physical Property ASTM Units Hybrid Resins Homo PPPP Copo40% talc

Tensile Strength @yield D 638 psi 2,600 4,600 4,200

Flexural Modulus D 790 psi 244,000 170,000 420,500Notched Izod Impact

(RT) D 256 lb-ft/in⁰

0.5-0.7 0.6 2HDT @ 66 psi D 648 C 134 95 125

MFI @2.16 Kg D 1238 g/10 min 10 @ 190C 35 @ 230C 22@230CDensity Calculated g/cc 1.1 0.9 1.25

BiopropyleneTM vs. PolypropylenePerformance & Processing Comparison

BiopropyleneTM has superior Heat Deflection, lower flexural Modulus and lower density than a PP 40% Talc

BiopropyleneTM has lower processing temperature

Better Printability than Polypropylene

Great aesthetic (“satin touch”)

Advantages of BiopropyleneTM

Up to 50% bio-based content derived from natural, renewable, and sustainable resources

Decrease dependence on fossil fuels, namely petroleum

Suitable for more durable goods

BiopropyleneTM cost less volatile compared to PP

Carbon Foot PrintHybrid ResinsTM vs. Petroleum-based ResinsHybrid Resins™ have a better environmental footprint– Up to 42% reduction in intrinsic carbon footprint than PP-Study

with Prof.Ramani Narayan Michigan University– Lower CO2 emissions for Bio-PP vs PP (1.82kg CO2 vs 3.14kg) – The feedstock is made from up to 50% natural, sustainable and

renewable resources– Lower processing temperatures for Bio-PP than PP– When discarded in landfills, the starch component (up to 50%)

will eventually degrade into methane, CO2, water, and biomass

*Life Cycle Analysis information is currently being compiled

Potential Applications for Biopropylene™AutomotiveConsumer GoodsConsumer ElectronicsMedical Durable cases (cell phone- computers)FurnitureCosmetic PackagingConstructionToys

PRODUCTION CAPACITY

PRODUCTION CAPACITY

2009 capacity

Seymour, Indiana

50 Million Lbs.

Current capacity

Hawthorne, California

20 Million Lbs.

HISTORY

1996 1998 20051999 20022001 20072003

Cereplast CEO Frederic Scheer

markets concept of compostable plastic

Scheer creates the Biodegradable

Plastics Institute

Scheer works with ASTM committee to

establish compostable guidelines in US

Scheer introduces

first compostable

cups

Scheer creates Cereplast to focus on developing bio-based

resins

Cereplast showcases biodegradable

foodservice ware at Salt Lake City

Olympics

Cereplast files first patent on

compostable resin formulation

Cereplast becomes a

publicly-held company

2006

Cereplast CompostablesTM

resins receive seal of approval from BPI

Cereplast adds 45 million pounds of production

capacity with completion of new resin manufacturing facility in Hawthorne, CA

Commercial launch of Cereplast

CompostablesTM

Cereplast and CEO Frederic Sheer are

featured in a short film on bio-plastics at the

Sundance Film Festival

Cereplast wins the SPE GPEC Award for

most Innovative Material of the year

Genpak, a Cereplast customer, introduces

“The Harvest Collection” - the first

line of fully biodegradable and

compostable foodservice ware

U.S. federal government designates products made from bio-based plastics as a preferred

purchasing item

Cereplast private placement raises $15 million in new equity capital from

institutional investors

Cereplast expands

internationally by establishing a sales office in Hong Kong

FINE LIVING TV NETWORK features

Cereplast and Frederic Scheer in a one-hour

special highlighting the company’s contribution

to green technology

Cereplast launches the first product from its Hybrid ResinTM

family

TOMORROWTODAY

Increasing legislation and green initiatives in the US, Europe

and Asia is speeding up demand for renewable bio-

plastics

Cereplast is the foremost developer and producer of proprietary bio-based, renewable

resins used as substitutes for

petroleum-based plastics

As the world takes an increasingly green focus, Cereplast plans to stay on

the cutting-edge of bio-based plastic material development to meet a

variety of customer needs

.

28

Cereplast expands bio-

plastic production with a new, half-

billion pound capacity Indiana

facility

Cereplast wins prestigious Autoplast Speicon Award for

outstanding achievements in the development of new

plastics for automotive applications

2008

Cereplast expands bioplastic applications

with freeze-tolerant compostable resin

Cereplast earns ISO9001:2000

certification for world-class management

system

SUMMARY

SUMMARYBio-plastics are at the early stage of long-term sustained growth cycleCereplast is a worldwide leader in this sectorThe industry is poised for explosive growthCereplast is able to support demand from consumers in an economically profitable fashion