Cereplast company and products introduction

1. Public Relations Meeting
July 14, 2006

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. 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

4. CEREPLAST COMPOSTABLES™
for single use disposables
CEREPLAST HYBRID RESINS™
for durable applications

5. CEREPLAST COMPOSTABLES™

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: 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

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 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

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. CEREPLAST HYBRID RESINS™

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 Cereplast Hybrid 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 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

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?
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.

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
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

23. 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

24. Potential Applications for Biopropylene™
Automotive
Consumer Goods
Consumer Electronics
Medical
Durable cases (cell phone- computers)
Furniture
Cosmetic Packaging
Construction
Toys

25. PRODUCTION CAPACITY

26. PRODUCTION CAPACITY
Current capacity
Hawthorne, California
20 Million Lbs.
2009 capacity
Seymour, Indiana
50 Million Lbs.

27. HISTORY

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. SUMMARY

30. 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