Cereplast Closes Initial Equity Placement.

HAWTHORNE, Calif. -- Cereplast, Inc. (OTCBB:CERP), manufacturer of proprietary bio-based sustainable plastics, announced today that it closed an interim round of $2.6 million in new equity financing. The funding was raised in a private placement of common stock to a group of existing shareholders, new "green" institutional funds and an external Director of Cereplast. The transaction priced on September 3, 2008 at $0.22 per share.

As previously announced in the Company's second quarter earnings release, this interim equity raise is the first step in an ongoing fundraising campaign which will be used for: the completion and start-up of the new Seymour manufacturing facilities; a major project to upgrade the productivity and cost competitiveness of the Compostables([R])manufacturing lines; the completion of the Company's first application development and testing laboratory; and funding the growth in working capital needed to support significant sales and business expansion coming through in the next few quarters.

About Cereplast

Cereplast, Inc. (OTCBB:CERP) designs and manufactures proprietary bio-based, sustainable plastics which are used as substitutes for petroleum-based plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with petroleum-based plastics. On the cutting-edge of bio-based plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables[R] Resins are ideally suited for single use applications where high bio-based content and compostability are advantageous, especially in the food service industry. Cereplast Hybrid Resins[R] combine high bio-based 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.

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.