Cereplast, Inc.

Cereplast Reports on the Financial Success of Composting Biodegradable Food Service Ware at the Oakland Coliseum; Coliseum to Save More Than $100,000, and Prevent Tons of Biodegradable Material from Ending Up in Landfills

January 31, 2006

HAWTHORNE, Calif.–(BUSINESS WIRE)–Cereplast, Inc.

(TM) (OTCBB:CERP), the producer of proprietary, bio-based resins

which are used as substitutes for petroleum-based plastics, reported

today that the Company grabbed the attention of attendees and Wall

Street alike at the US Composting Council meeting held in Albuquerque

this week. Cereplast’s VP, Russell Wegner, reported on the composting

program at Oakland, California’s McAfee Coliseum, noting the amount of

refuse diverted to composting rather than to landfills, and

highlighting the staggering financial success of the program.

Cereplast’s San Francisco office arranged last year for the

introduction of biodegradable food service ware at Oakland’s McAfee

Coliseum, home of the Oakland Athletics and Oakland Raiders. This

historic accomplishment made it the first national stadium in the

country to use biodegradable service ware.

To help Oakland’s McAfee Coliseum achieve its goal of becoming a

zero-waste stadium, Cereplast was instrumental in creating a

partnership between various key participants: StopWaste.Org (Alameda

County); Aramark, a national provider of food service; SMG, the

Coliseum management company; and the Athletics, all spurred along by

California legislation, Assembly Bill 2176, which requires large

venues to have recycling programs in place. The combination of all

these participants and the use of biodegradable and compostable

products made this program not only an environmental success but also

a major financial success for the Oakland Coliseum.

The Coliseum’s maintenance director, George Valerga of SMG, stated

that he is saving over $100,000 per year on its garbage bill. This is

accomplished by diverting the biological components from landfills,

and instead, sending food waste, along with biodegradable food service

ware, to a commercial composting site managed by Norcal Waste Systems.

Cereplast provided not only Cereplast-made products, but also

invited additional biodegradable products to be featured, especially

NatureWorks PLA cups. “We believe in teaming up and wanted to make the

Coliseum a showcase for the industry. All products were Biodegradable

Products Institute (B.P.I.) approved, which guarantees the legitimacy

of this program,” said Frederic Scheer, Cereplast CEO. “This story has

now gained nationwide attention and is a testimony on how a well

designed program with several players from the private and public

sector can both be good for the environment and financially

attractive.”

Cereplast, whose main operations are in resin manufacturing,

continues to jump-start programs around the country to promote the use

of biodegradable and compostable food service ware. New similar

programs are in the works both on the West Coast and in New York,

where the company has recently opened another office.

About Cereplast, Inc.

Cereplast, Inc. (http://www.cereplast.com) has developed a

breakthrough technology to produce proprietary bio-based resins which

are used as substitutes for petroleum-based plastics in a variety of

applications, including the manufacture of food service items such as

utensils, plates, cups and straws. Made from renewable resources such

as corn and potato starch, Cereplast resins are bio-based,

biodegradable and compostable, and have comparable or superior

performance characteristics to conventional plastics, and are sold at

prices that are competitive with plastics.

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.