Cereplast Reports Financial Results for the First Nine Months of 2013

Cereplast Reports Financial Results for the First Nine Months of 2013

SEYMOUR, Ind., Nov. 14, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc. (OTCQB:CERP)
(the "Company"), a leading manufacturer of proprietary biobased, compostable
and sustainable bioplastics, today announced $2.1 million in revenue during
the first nine months of 2013 compared to $786,000 for the same period the
prior year and a total of $911,000 for the 2012 full year.

Cereplast Chairman and Chief Executive Officer Mr. Frederic Scheer stated, "We
are pleased with the year-over-year growth we have experienced for the first
nine months of 2013 and we expect to continue this trend as the global market
opportunity continues to increase. The most immediate growth driver is the
ongoing legislation in Italy for the sanctions of traditional plastic bags. We
continue to work closely with customers who are capable of placing orders much
larger than they are today in the anticipation of the ruling."

Mr. Scheer continued, "Italy and subsequent European countries have created an
immense opportunity for us but we are not putting all of our eggs in one
basket. We foresee India and the United States as significant markets for us
as well. Both markets are already enforcing sanctions in select areas. We have
feet on the ground in each market and are beginning to secure contracts by
first educating the marketplace about the benefits of our technology. In India
we recently received a $1.4 million order and in the U.S. we are actively
pursuing 30 projects with a potential value of over $10 million per year. We
anticipate continued traction in both markets."

2013 Industry, Financial and Operational Highlights to Date:

  oRevenue for the first nine months of 2013 totaled $2.1 million.
  oIn a recent document, the European Union Environmental Commission stated
    that they are in support of an amendment to this legislation, which is
    scheduled to go into effect in November and member states will have two
    years to comply.
  oCereplast has estimated annual revenue potential from Italy alone to
    exceed $50 million.
  oFor the past 18 months, the Company has worked closely with over 70
    companies in Italy that have completed multiple successful tests with
    various grades of their blown film resins.
  oIn India, Cereplast recently received a $1.4 million purchase order, which
    will ship over the next 10 months.
  oAdditionally, Cereplast received five purchase orders in India totaling
    $450,000 for blown film resins which will be delivered throughout the
    remainder of 2013.
  oIn the United States, regional and federal laws are supporting growth of
    the bioplastics industry as seen by movements in San Francisco, Portland
    and New York City.
  oCereplast has valued the bioplastic industry in the United States today to
    be $180 million and expects to begin generating meaningful revenue in
  oCereplast is actively pursuing 30 projects in North America with potential
    value of $10 million per year.
  oCereplast recently launched reVive™ bioplastic resins, the first
    bioplastics to combine recycled polymers with biobased resins for improved
    sustainability, reducing the carbon footprint of this type of bioplastic
    by adding the environmental benefits of recycled plastic.

2013 First Nine Months Financial Results:

Net sales for the nine months ended September 30, 2013 were approximately $2.1
million, compared to $0.8 million in the same period in 2012. Sales increased
from the prior year due to growing demand in European markets primarily due to
anticipated legislation in Italy banning traditional plastic bags.

Cost of sales is comprised of variable costs associated with product revenues.
Cost of sales for the nine months ended September 30, 2013 was approximately
$1.9 million, compared to $0.9 million for the same period in 2012. The
increase in cost of sales is due to an increase in sales.

Gross profit (loss) for the nine months ended September 30, 2013 was
approximately $0.3 million, compared to ($0.1) million for the same period in
2012. The increase in gross profit was attributable to an increase in sales,
as stated above.

Research and development expenses for the nine months ended September 30, 2013
were $0.3 million, compared to approximately $0.4 million for the same period
in 2012. Research and development expenses have slightly decreased due to a
cost containment effort to preserve working capital.

Selling, general and administrative expenses for the nine months ended
September 30, 2013 were $3.8 million, compared to $10.5 million for the same
period in 2012. The decrease in sales, general and administrative expenses was
primarily due to bad debt expense of $5.1 million recorded in the third
quarter of 2013. In addition, the sales, general and administrative expenses
decreased due to reduced headcount and a reduction in fixed production
overhead costs classified as selling, general and administrative expense due
to an extended period of abnormally low production volume.

Other income and expense, net for the nine months ended September 30, 2013 was
a net expense of $29.6 million, as compared to a net expense of $5.3 million
in the same period in 2012. The increase in expense was primarily a result of
the change in our derivative liability related to our warrants, short-term
convertible debt and preferred stock agreements. In addition, we recorded $2.8
million in debt extinguishment costs related to the exchange of certain of our
term loan and convertible notes.

Net loss for the nine months ended September 30, 2013 was $34 million, as
compared to $16.3 million in the same period in 2012. The increase in net loss
was primarily driven by an increase in Other Expense related to financing
transactions. As discussed above, Other Income and Expense, net was
unfavorably impacted by losses on derivative liabilities totaling $21.6
million. The increase in net loss was partially offset by a decrease in bad
debt expense recorded in the first nine months of 2013 compared to the first
nine months of 2012.

Conference Call       
Date:                 Thursday, November 14^th
Time:                 4:30 p.m. Eastern
Participant Dial-In:  (480) 629-9761
Live Webcast:         http://www.cereplast.com/investors/events-presentations/

It is recommended that participants dial in approximately 10 minutes prior to
the start of the 4:30 p.m. Eastern call. There will also be a simultaneous
live webcast of the conference call which can be accessed through the
following audio feed link and archived recording of the conference call
available under the Investor Relations section of the company website at

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.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "anticipate," "believe,"
"estimate," "may," "intend," "expect" and similar expressions identify such
forward-looking statements. Actual results, performance or achievements could
differ materially from those contemplated, expressed or implied by the
forward-looking statements contained herein. These forward-looking statements
are based largely on the expectations of the Company and are subject to a
number of risks and uncertainties. These include, but are not limited to,
risks and uncertainties associated with: the impact of economic, competitive
and other factors affecting the Company and its operations, markets, product,
and distributor performance, the impact on the national and local economies
resulting from terrorist actions, and U.S. actions subsequently; and other
factors detailed in reports filed by the Company.

(in thousands, except shares data)
                                              September 30, 2013 December 31,
Current Assets                                                   
Cash                                           $233             $183
Accounts Receivable, Net                       1,021              149
Inventory, Net                                 5,722              6,941
Prepaid Expenses and Other Current Assets      199               227
Total Current Assets                           7,175              7,500
Property and Equipment                                           
Property and Equipment                         11,152             11,601
Accumulated Depreciation and Amortization      (4,660)            (4,004)
Property and Equipment, Net                    6,492              7,597
Other Assets                                                     
Restricted Cash                                --               43
Deferred Loan Costs                            350               750
Intangible Assets, Net                         239                245
Deposits                                       48                 47
Total Other Assets                             637                1,085
Total Assets                                   $14,304          $16,182
Current Liabilities                                              
Accounts Payable                               $920             $803
Accrued Expenses                               3,386              3,663
Capital Leases, Current Portion                97                 85
Loan Payable, Current Portion                  6,224              5,978
Convertible Subordinated Notes, Current        1,122              891
Derivative Liability                           15,142             3,189
Preferred Stock, $0.001 par value; 5,000,000
shares authorized; 490 and 92 sharesissued    2,213             500
and outstanding at September 30, 2013 and
December 31, 2012, respectively
Total Current Liabilities                      29,104             15,109
Long-Term Liabilities                                            
Loan Payable                                   --                923
Convertible Subordinated Notes                 7,500             10,000
Capital Leases, Long-Term                      120               173
Total Long-Term Liabilities                    7,620              11,096
Total Liabilities                              36,724             26,205
Shareholders' Deficit                                            
Common Stock, $0.001 par value; 2,000,000,000
shares authorized;810,757,671 and 63,463,659  811               63
shares issued and outstanding at September 30,
2013 and December 31, 2012, respectively
Common Stock Subscribed, not issued            1,358             --
Additional Paid in Capital                     96,416            76,919
Accumulated Deficit                            (121,136)         (87,097)
Accumulated Other Comprehensive Income         127               88
                                              (22,424)          (10,027)
Noncontrolling Interests                       4                 4
Total Shareholders' Deficit                    (22,420)           (10,023)
Total Liabilities and Shareholders' Deficit    $14,304          $16,182

(unaudited, in thousands, except per share data)
                      Three Months Ended        Nine Months Ended
                      September 30, September 30, September 30, September 30,
                       2013          2012          2013          2012
Gross Product Sales    $438        $481        $2,135      $786
Sales Discounts,       (2)          (4)          (3)          (16)
Returns and Allowances
Net Sales              436          477          2,132        770
Cost of Goods Sold     382          473          1,880        861
Gross Profit (Loss)    54           4            252          (91)
Operating Expenses:                                           
Research and           75           115          295          370
Selling, General and   1,134        6,847        3,796        10,519
Impairment of          547          --           547          --
Long-Lived Assets
Total Operating        1,756        6,962        4,638        10,889
Operating Loss         (1,702)      (6,958)      (4,386)      (10,980)
Debt Extinguishment    (1,065)      --           (2,821)      (427)
Change in Derivative   (2,392)      47           (21,629)     (52)
Interest and Other     --           --           --           18
Interest Expense       (2,112)      (3,057)      (5,203)      (4,834)
Loss Before Provision  (7,271)      (9,968)      (34,039)     (16,275)
for Income Taxes
Provision for Income   --           --           --           --
Net Loss               $(7,271)    $(9,968)    $(34,039)   $(16,275)
Net Loss Per Share -   $(0.01)     $(0.40)     $(0.07)     $(0.77)
Basic and Diluted
Weighted Average
Common Shares          731,817,081  24,739,449   482,042,209  21,242,115
Outstanding - Basic
and Diluted

(unaudited, in thousands, except shares data)
                                        Nine Months Ended
                                        September 30, 2013 September 30, 2012
Net Loss                                 $(34,039)        $(16,275)
Adjustment to Reconcile Net Loss to Net                    
Cash Used in Operating Activities
Depreciation and Amortization            665               536
Allowance for Doubtful Accounts          3                 5,082
Common Stock Issued for Services,        171               160
Salaries and Wages
Amortization of Loan Discount            4,230             3,223
Extinguishment of Convertible Debt       2,821             368
Loss on Derivative Liabilities           21,629            52
Impairment of Long-Lived Assets          547               --
Changes in Operating Assets and                            
Accounts Receivable                      (875)             537
Deferred Loan Costs                      400               458
Inventory                                1,219             814
Prepaid Expenses                         28                (171)
Restricted Cash                          43                --
Accounts Payable                         116               659
Accrued Expenses                         749               288
NET CASH USED IN OPERATING ACTIVITIES    (2,293)           (4,269)
Purchase of Property and Equipment, and  (3)               (180)
Proceeds from Sale of Equipment          --                15
NET CASH USED IN INVESTING ACTIVITIES    (3)               (165)
Payments on Capital Leases               (41)              (50)
Payments made on Notes Payable           (63)              (603)
Proceeds from Convertible Notes, Net of  63                600
Issuance Costs
Proceeds from Issuance of Preferred      2,750             400
Proceeds from Issuance of Common Stock   (23)              400
and Subscriptions, Net of Issuance Costs
NET CASH PROVIDED BY FINANCING           2,686             747
FOREIGN CURRENCY TRANSLATION             (340)             (16)
NET INCREASE (DECREASE) IN CASH          50                 (3,703)

CONTACT: Cereplast, Inc.
         Public Relations
         Nicole Robertson
         812.220.5400 X1013
         Investor Relations:
         Alliance Advisors, LLC
         Valter Pinto
         914-669-0222 x201

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