Cereplast Announces $500,000 in New Revenue and Provides 2013 Outlook

Cereplast Announces $500,000 in New Revenue and Provides 2013 Outlook

EL SEGUNDO, Calif., Jan. 23, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc.
(OTCQB:CERP) (the "Company"), a leading manufacturer of proprietary biobased,
compostable and sustainable bioplastics, today is providing a shareholder
update and an outlook for 2013. Cereplast has created additional liquidity
through the generation of approximately $500,000 in revenue over the last six
weeks while continuing to focus on restructuring its operations to further
position the Company for growth throughout 2013.

Revenue Generation in Europe, the United States and Asia

In Europe, specifically in Italy, the Italian parliament made a critical vote
on December 13, 2012, which confirms the proposed sanctions on companies using
traditional plastic bags and mandates a switch to bioplastic or other
alternatives 60 days from the publication of the Application Decree. In
anticipation of the final Application Decree to be signed, Cereplast has
received several orders for blown film resin, which were fulfilled utilizing
its existing inventory. All customer payments were received in advance of
shipment or within conservative credit terms. The Company expects continued
growth in demand for blown film as a result of the anticipated legislation in
Italy.

In the United States, Cereplast received several orders for compostable resins
that will be used for food service applications. Multiple large food chains
have started to embrace the use of compostable material for food service ware
items including straws, cups and cutlery, for which Cereplast's resins are in
demand. Cereplast has fulfilled these orders and all payments have been
received.

Cereplast received several purchase orders from existing clients in India.
Management is encouraged by the progress made in India and anticipates their
investments in this new market will translate into additional purchase orders
and future revenue growth in 2013.

Debt and Indenture

Management announced that our debt holders have waived the event of default,
and have agreed to forbear from exercising their rights and remedies under the
Indenture with respect to the Company's failure to make interest payments due
on June 1, 2012 and December 1, 2012. The Company was successful in arranging
a structured investment from an institutional investor, offering a repayment
plan to settle both the past due interest balance as well as the coupon due in
June 2013. The restructuring provides the Company relief until December 2013.

With respect to the Compass Horizon term loan, an arrangement was completed by
which an institutional investor will repay the remaining principal and
interest owed under the Term Loan.

Working Capital and Liquidity

To provide the Company with the required working capital to continue
operations, approximately $1 million in short term convertible debt and equity
financing was completed. In order to maximize these new investments, the
Company has enacted an operational restructuring strategy which includes a
reduction in operating costs. Additionally, the Company has taken aggressive
cost cutting measures, which include a furlough for production employees and a
reduction in its worldwide headcount to 17 employees.

In order to improve cash flow, the Company adjusted their sales and shipment
policy, requiring payment in advance of shipment and reducing terms to less
than 30 days for large domestic companies.

Inventory Recovery from Delinquent Accounts Receivable

Cereplast initiated a systematic strategy to recover their customers' unsold
inventories associated with their delinquent Accounts Receivable balances. In
September 2012, 22 containers of the Company's Compostable resins were
successfully recovered, valued at approximately $2 million.The same strategy
will be used to recover available remaining assets across Europe, Italy,
Germany and Malta.

Intellectual Property

Management believes that there is tremendous unlocked value within the
intellectual property portfolio of the Company. As the industry continues to
evolve, management believes that large conglomerates will begin to make
further investments. It is therefore critical to continue to protect the
Company's intellectual property while continuing key Research and Development
projects. In 2012, Cereplast was granted two patents and is prepared to file
an additional five patents in the next few weeks covering both families of
resins: Cereplast Compostables® resins and Cereplast Sustainables® resins,
including Cereplast Algae Bioplastics™.

About Cereplast, Inc.

Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased,
sustainable bioplastics which are used as substitutes for traditional plastics
in all major converting processes - such as injection molding, thermoforming,
blow molding and extrusions - at a pricing structure that is competitive with
traditional plastics. On the cutting-edge of biobased plastic material
development, Cereplast now offers resins to meet a variety of customer
demands. Cereplast Compostables® resins are ideally suited for single-use
applications where high biobased content and compostability are advantageous,
especially in the food service industry. Cereplast Sustainables® resins
combine high biobased content with the durability and endurance of traditional
plastic, making them ideal for applications in industries such as automotive,
consumer electronics and packaging. Learn more at www.cereplast.com. You may
also visit the Cereplast social networking pages at Facebook.com/Cereplast,
Twitter.com/Cereplast and Youtube.com/Cereplastinc.

The Cereplast, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=9567

CONTACT: Cereplast, Inc.
         Public Relations
         Nicole Robertson
         (310) 615-1900 x154
         nrobertson@cereplast.com
        
         Investor Relations:
         Alliance Advisors, LLC
         Alan Sheinwald
         914-669-0222
         asheinwald@allianceadvisors.net
         www.AllianceAdvisors.net

Cereplast, Inc. Logo
 
Press spacebar to pause and continue. Press esc to stop.