Public Relations Meeting
      July 14, 2006
Cereplast Overview
Cereplast, Inc. (CERE: “from cereal”; PLAST: “from plastic”) is a
leading 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™
Bio-Plastic vs. Conventional Plastic
Cereplast Compostable  90% +           Density         Runs on            Heat deflection
Resin                      Bio‐based   greater than    equipment at       temperature of 
Certified Biodegradable &  Content     1.25            lower              120‐130F
Compostable                                            temperatures
Cereplast                 50%          Density of      Runs on            Heat deflection
Hybrid Resin              Bio‐based    1.04            equipment at       temperature of 
Renewable & Sustainable   Content                      lower              175‐ 200F
                                                       temperatures
Conventional              0%           Density         Runs on            Heat deflection
Petroleum                 Bio‐based    between 0.9‐    equipment at       temperature 
Plastic                   Content      0.99            higher processing  above 200F
NOT                                                    temperatures
‐Biodegradable
‐Compostable
‐Renewable 
‐Sustainable
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).
CEREPLAST COMPOSTABLES™
Commercial Resin          Applications
EXTRUSION-THERMOFORMING   Plates, containers, packaging
INJECTION MOLDING         Utensils, cups, containers
EXTRUSION BLOW MOLDING    Bottles, containers
BLOWN FILM                Food packaging wrap,
                          bags, can liners
PROFILE EXTRUSION         Straws
EXTRUSION COATING         Paper coatings
Extrusion-Thermoforming Grades
CP-TH-01C: standard grade created for extrusion-thermoforming
CP-TH-15000C greater impact strength and the addition of TiO2 for
whiter product
CP-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 Characteristics            Environmental Characteristics
  Top quality performance, including rigidity      Biodegradable & Compostable
  Higher thermo-resistance than PLA                 – ASTM 6400- BPI compliant
  Greater strength than PLA                        Bio-based Content
  Not brittle                                       – ASTM 6866-04a - +90% (Radio-Carbon
                                                       process)
                                                   GMO Analysis
                                                    – GENESCAN -PCRQ: NEGATIVE
                                                   FDA Compliant
                                                    – KELLER & HECKMAN Compliance
                                                       Opinion
                                                   EN 13432 European Standard
                                                    – European-Bioplastics organization
Managing The Carbon Cycle
                        “Cradle to Cradle”
                                                        METHANE
                                             CO2
                                               2
                                                         Sanitary
                                                         Landfill
                                          COMPOSTING
                                          COMPOSTING



                         90 to 180 Days            10 Million
                                                   10 Million
                                                     Years
                                                     Years




Drilling Exploitation
  Manufacturing                                        Oil or Gas
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™
CEREPLAST HYBRID RESINSTM
• High bio-based content

• Proprietary compounds incorporating traditional
  petroleum    based     resins  with  Cereplast
  proprietary basket of starches

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

                                     Resin Prices vs Crude



                       70%
                       60%
       YOY % Change




                       50%
                       40%
                       30%
                       20%
                       10%
                        0%
                      -10%   2001   2002        2003          2004     2005   2006    2007
                      -20%
                      -30%
                                                              Year



                                           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
CEREPLAST HYBRID RESINSTM
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
What is BiopropyleneTM?
BiopropyleneTM is a patented/proprietary
Cereplast Hybrid ResinsTM
Contains polypropylene, starch, a compatibilizer
for starch and PP, and a blend of selective
plasticizers to facilitate starch processing
Made via reactive twin-screw extrusion process
Two-phase morphology: PP is the continuous
phase with a dispersed starch phase.
BiopropyleneTM Physical Properties
                                vs. Polypropylene
                                                                      PP Copo
 Physical Property     ASTM         Units     Hybrid Resins Homo PP   40% talc
  Tensile Strength
      @yield           D 638         psi         2,600       4,600     4,200
 Flexural Modulus      D 790         psi        244,000     170,000   420,500
Notched Izod Impact
        (RT)           D 256       lb-ft/in      0.5-0.7      0.6        2
   HDT @ 66 psi        D 648         ⁰C            134        95        125

  MFI @2.16 Kg         D 1238      g/10 min    10 @ 190C   35 @ 230C 22@230C
     Density          Calculated     g/cc         1.1         0.9      1.25
BiopropyleneTM vs. Polypropylene
  Performance & 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 Print
Hybrid ResinsTM vs. Petroleum-based Resins
Hybrid 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™
 Automotive
 Consumer Goods
 Consumer Electronics
 Medical
 Durable cases (cell phone- computers)
 Furniture
 Cosmetic Packaging
 Construction
 Toys
PRODUCTION CAPACITY
PRODUCTION CAPACITY
       Current capacity

       Hawthorne, California
           20 Million Lbs.




                       2009 capacity
                     Seymour, Indiana
                      50 Million Lbs.
HISTORY
.

            Scheer works with
                                                               Commercial launch of                                   FINE LIVING TV                                                As the world takes an
           ASTM committee to
                                                                   Cereplast                                        NETWORK features                                              increasingly green focus,
          establish compostable
                                                                 CompostablesTM        Cereplast wins the          Cereplast and Frederic                                         Cereplast plans to stay on
             guidelines in US
                                                                                      SPE GPEC Award for            Scheer in a one-hour          Cereplast expands                the cutting-edge of bio-
                                                                                        most Innovative            special highlighting the     bioplastic applications             based plastic material
                           Cereplast showcases                                         Material of the year        company’s contribution        with freeze-tolerant              development to meet a
                               biodegradable          Cereplast                                                     to green technology           compostable resin               variety of customer needs
                            foodservice ware at   CompostablesTM
  Cereplast CEO
                               Salt Lake City    resins receive seal       Genpak, a Cereplast                                                                          Cereplast is the
  Frederic Scheer                                                                                                                         Cereplast
                                  Olympics      of approval from BPI       customer, introduces                                                                    foremost developer and
markets concept of                                                                                                                     expands bio-
                                                                               “The Harvest           Cereplast private                                             producer of proprietary
compostable plastic                                                                                                                  plastic production
                          Scheer                                           Collection” - the first   placement raises                                               bio-based, renewable
                        introduces               Cereplast                      line of fully        $15 million in new              with a new, half-                  resins used as
                            first               becomes a                   biodegradable and        equity capital from                billion pound                   substitutes for
                       compostable             publicly-held                   compostable              institutional                capacity Indiana                  petroleum-based
                            cups                 company                     foodservice ware             investors                          facility                       plastics




     1996 1998 1999 2001 2002 2003 2005 2006                                 2007                                                                2008                      TODAY         TOMORROW




                                                                                                  Cereplast                            Cereplast wins                Increasing legislation
                                                                 U.S. federal government           expands                          prestigious Autoplast             and green initiatives
                                   Cereplast files first
     Scheer creates the                                            designates products        internationally by                     Speicon Award for                 in the US, Europe
                                       patent on
       Biodegradable                                              made from bio-based           establishing a                           outstanding                 and Asia is speeding
                                   compostable resin
      Plastics Institute                                          plastics as a preferred       sales office in                     achievements in the                  up demand for
                                      formulation
                                                                     purchasing item             Hong Kong                          development of new                   renewable bio-
                                                                                                                                   plastics for automotive                   plastics
                                                                                                                                         applications
                     Scheer creates
                  Cereplast to focus on         Cereplast adds 45 million                                                                               Cereplast earns
                                                                                  Cereplast and CEO
                  developing bio-based            pounds of production                                                                                  ISO9001:2000
                                                                                  Frederic Sheer are
                         resins                capacity with completion of                                                                           certification for world-
                                                                               featured in a short film on
                                                new resin manufacturing                                         Cereplast launches                    class management
                                                                                   bio-plastics at the
                                                facility in Hawthorne, CA                                      the first product from                         system
                                                                                Sundance Film Festival
                                                                                                                its Hybrid ResinTM
                                                                                                                        family
                                                                                                                                                                                                    28
SUMMARY
SUMMARY
Bio-plastics are at the early stage of long-term
sustained growth cycle
Cereplast is a worldwide leader in this sector
The industry is poised for explosive growth
Cereplast is able to support demand from
consumers in an economically profitable fashion

2009 Cereplast Presentation

  • 1.
  • 2.
    Cereplast Overview Cereplast, Inc.(CERE: “from cereal”; PLAST: “from plastic”) is a leading 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™
  • 3.
    Bio-Plastic vs. ConventionalPlastic Cereplast Compostable  90% +  Density Runs on  Heat deflection Resin Bio‐based greater than  equipment at  temperature of  Certified Biodegradable &  Content 1.25 lower  120‐130F Compostable temperatures Cereplast 50%  Density of  Runs on  Heat deflection Hybrid Resin Bio‐based  1.04 equipment at  temperature of  Renewable & Sustainable Content lower  175‐ 200F temperatures Conventional 0%  Density  Runs on  Heat deflection Petroleum Bio‐based between 0.9‐ equipment at  temperature  Plastic Content 0.99 higher processing  above 200F NOT  temperatures ‐Biodegradable ‐Compostable ‐Renewable  ‐Sustainable
  • 4.
    CEREPLAST COMPOSTABLES™ for single use disposables CEREPLAST HYBRID RESINS™ for durable applications
  • 5.
  • 6.
    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).
  • 7.
    CEREPLAST COMPOSTABLES™ Commercial Resin Applications EXTRUSION-THERMOFORMING Plates, containers, packaging INJECTION MOLDING Utensils, cups, containers EXTRUSION BLOW MOLDING Bottles, containers BLOWN FILM Food packaging wrap, bags, can liners PROFILE EXTRUSION Straws EXTRUSION COATING Paper coatings
  • 8.
    Extrusion-Thermoforming Grades CP-TH-01C: standardgrade created for extrusion-thermoforming CP-TH-15000C greater impact strength and the addition of TiO2 for whiter product CP-TH-6000C: improved HDT of the final product to 155F. Processing Guidelines are available for the resins
  • 9.
    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
  • 10.
    CEREPLAST COMPOSTABLES™ CHARACTERISTICS Superior Performance Characteristics Environmental Characteristics Top quality performance, including rigidity Biodegradable & Compostable Higher thermo-resistance than PLA – ASTM 6400- BPI compliant Greater strength than PLA Bio-based Content Not brittle – ASTM 6866-04a - +90% (Radio-Carbon process) GMO Analysis – GENESCAN -PCRQ: NEGATIVE FDA Compliant – KELLER & HECKMAN Compliance Opinion EN 13432 European Standard – European-Bioplastics organization
  • 11.
    Managing The CarbonCycle “Cradle to Cradle” METHANE CO2 2 Sanitary Landfill COMPOSTING COMPOSTING 90 to 180 Days 10 Million 10 Million Years Years Drilling Exploitation Manufacturing Oil or Gas
  • 12.
    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
  • 13.
  • 14.
    CEREPLAST HYBRID RESINSTM •High bio-based content • Proprietary compounds incorporating traditional petroleum based resins with Cereplast proprietary basket of starches • Targeted towards durable good applications, where end users want a sustainable product option
  • 15.
    What are CereplastHybrid ResinsTM? Bio-based plastic resins containing up to 50% starch from natural, renewable, and sustainable resources, such as: – Corn – Tapioca – Wheat – Potato
  • 16.
    Lesser Dependence onPetroleum Plastic is made of fossil fuels Resin Prices vs Crude 70% 60% YOY % Change 50% 40% 30% 20% 10% 0% -10% 2001 2002 2003 2004 2005 2006 2007 -20% -30% Year PP LDPE HDPE Crude
  • 17.
    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
  • 18.
    CEREPLAST HYBRID RESINSTM 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
  • 19.
    What is BiopropyleneTM? BiopropyleneTMis a patented/proprietary Cereplast Hybrid ResinsTM Contains polypropylene, starch, a compatibilizer for starch and PP, and a blend of selective plasticizers to facilitate starch processing Made via reactive twin-screw extrusion process Two-phase morphology: PP is the continuous phase with a dispersed starch phase.
  • 20.
    BiopropyleneTM Physical Properties vs. Polypropylene PP Copo Physical Property ASTM Units Hybrid Resins Homo PP 40% talc Tensile Strength @yield D 638 psi 2,600 4,600 4,200 Flexural Modulus D 790 psi 244,000 170,000 420,500 Notched Izod Impact (RT) D 256 lb-ft/in 0.5-0.7 0.6 2 HDT @ 66 psi D 648 ⁰C 134 95 125 MFI @2.16 Kg D 1238 g/10 min 10 @ 190C 35 @ 230C 22@230C Density Calculated g/cc 1.1 0.9 1.25
  • 21.
    BiopropyleneTM vs. Polypropylene Performance & 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”)
  • 22.
    Advantages of BiopropyleneTM Upto 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
  • 23.
    Carbon Foot Print HybridResinsTM vs. Petroleum-based Resins Hybrid 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
  • 24.
    Potential Applications forBiopropylene™ Automotive Consumer Goods Consumer Electronics Medical Durable cases (cell phone- computers) Furniture Cosmetic Packaging Construction Toys
  • 25.
  • 26.
    PRODUCTION CAPACITY Current capacity Hawthorne, California 20 Million Lbs. 2009 capacity Seymour, Indiana 50 Million Lbs.
  • 27.
  • 28.
    . Scheer works with Commercial launch of FINE LIVING TV As the world takes an ASTM committee to Cereplast NETWORK features increasingly green focus, establish compostable CompostablesTM Cereplast wins the Cereplast and Frederic Cereplast plans to stay on guidelines in US SPE GPEC Award for Scheer in a one-hour Cereplast expands the cutting-edge of bio- most Innovative special highlighting the bioplastic applications based plastic material Cereplast showcases Material of the year company’s contribution with freeze-tolerant development to meet a biodegradable Cereplast to green technology compostable resin variety of customer needs foodservice ware at CompostablesTM Cereplast CEO Salt Lake City resins receive seal Genpak, a Cereplast Cereplast is the Frederic Scheer Cereplast Olympics of approval from BPI customer, introduces foremost developer and markets concept of expands bio- “The Harvest Cereplast private producer of proprietary compostable plastic plastic production Scheer Collection” - the first placement raises bio-based, renewable introduces Cereplast line of fully $15 million in new with a new, half- resins used as first becomes a biodegradable and equity capital from billion pound substitutes for compostable publicly-held compostable institutional capacity Indiana petroleum-based cups company foodservice ware investors facility plastics 1996 1998 1999 2001 2002 2003 2005 2006 2007 2008 TODAY TOMORROW Cereplast Cereplast wins Increasing legislation U.S. federal government expands prestigious Autoplast and green initiatives Cereplast files first Scheer creates the designates products internationally by Speicon Award for in the US, Europe patent on Biodegradable made from bio-based establishing a outstanding and Asia is speeding compostable resin Plastics Institute plastics as a preferred sales office in achievements in the up demand for formulation purchasing item Hong Kong development of new renewable bio- plastics for automotive plastics applications Scheer creates Cereplast to focus on Cereplast adds 45 million Cereplast earns Cereplast and CEO developing bio-based pounds of production ISO9001:2000 Frederic Sheer are resins capacity with completion of certification for world- featured in a short film on new resin manufacturing Cereplast launches class management bio-plastics at the facility in Hawthorne, CA the first product from system Sundance Film Festival its Hybrid ResinTM family 28
  • 29.
  • 30.
    SUMMARY Bio-plastics are atthe early stage of long-term sustained growth cycle Cereplast is a worldwide leader in this sector The industry is poised for explosive growth Cereplast is able to support demand from consumers in an economically profitable fashion