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Cereplast Announces $500,000 In New Revenue And Provides 2013 Outlook

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

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