Converted Organics Inc. Receives Award for Innovative Smartcube(TM) Packaging from Major Lawn and Garden Distributor.

BOSTON -- Converted Organics Inc. (NASDAQ:COIN) announced today that the company was awarded the 2008 Arett Sales New Packaging Award for its innovative Smartcube[TM] flower and garden organic fertilizer packaging. Arett Sales is the premier distributor of lawn and garden products in the northeastern United States, servicing over 2,750 customers. Arett presented the award to Converted Organics during its Spring 2009 Product Showcase Trade Show, held September 15-16 in Atlantic City, New Jersey.

"Converted Organics is a well-deserving recipient of the Arett Sales New Packaging Award for 2008, and we are very excited about the opportunity their product line presents for Arett, our dealers, and for the industry in general," said Mike Mallon, Vice President of Merchandising and Marketing for Arett Sales. "Ultimately however, it is the consumer who wins, as they search for greener and more effective organic lawn and garden care products. Converted Organics' products are among the most unique we have seen, and our dealers responded overwhelmingly at our recent Open House trade show."

"Converted Organics is honored to receive the Arett Sales New Packaging Award, and we appreciate being recognized by such a prestigious and well-respected industry leader as Arett Sales," said Edward J. Gildea, President of Converted Organics. "Such acknowledgement of Converted Organics' commitment to innovation and excellence, which extends to every facet of our business, is very gratifying to our management team, as well as to our Company's stockholders."

Converted Organics is the sole user of the proprietary Smartcube[TM] packaging within the lawn and garden arena. The Smartcube[TM] packaging is unique due to its ability to stand upright and square. This ability maximizes presentation of the product, creating an instant "billboard" and a ready-made store display directly from the delivery pallet. The cube shape also reduces waste and maximizes the efficiency of storage and transportation.

About Arett Sales

Arett Sales, based in Cherry Hill, New Jersey, is a 56-year-old, family-owned Lawn and Garden and Consumer Products Distributor. With 40 salespeople, Arett offers over 5,000 items from its three warehouses, including its newest in Troy, OH (opening November 1, 2008) and ships to 20 states throughout the northeastern United States. Arett Sales has several other business divisions including Arett Outsource, which provides third-party fulfillment and supply chain solutions for manufacturers and retailers; The Works, an import product division with private label brands that include The Works, Apco, Christmas by Frosty and Terra Verde; Goodprod Sales, a professional lawn, garden and landscape division that sells directly to municipalities and lawn and garden professionals; National Prime Source, a partnership with other regional distributors which sells consumer products to national retailers throughout the United States; and Arett e-Solutions, an internet fulfillment business offering fulfillment for e-tailers and retailers throughout the United States.

About Converted Organics Inc.

Converted Organics (NASDAQ:COIN), based in Boston, MA, is dedicated to producing valuable all-natural, organic soil amendment or fertilizer products through food waste recycling. The company uses proven, state-of-the-art technologies to create a product that helps grow healthier food and improve environmental quality. Converted Organics plans to sell and distribute its environmentally-friendly fertilizer products in the retail, turf management, and agribusiness markets.

Converted Organics' fertilizer products will be produced in both a dry pellet and liquid concentrate. Converted Organics' products have been tested in numerous field trials for more than a dozen crops with the result that, on average, the net value of the farmer's crop increased 11-16%, depending on the particular crop and product application. This is due, in part, to the disease suppression characteristics of the product, which reduce or eliminate the need for other costly, often toxic, crop protection applications. Increased use of nitrogen in commercial agriculture and turf grass applications, such as golf courses, has reduced the soil's ability to absorb nitrogen and other nutrients. Using the products produced by Converted Organics helps restore the soil by replenishing these micronutrients. This reduces the amount of nitrogen required in a virtuous cycle that benefits from long-term use. As a result, use of the product will reduce chemical run-off to streams, ponds and rivers, an objective with significant long-term benefits to the environment.

The products have a long shelf life compared to many other organic fertilizers. In a number of lab and field trials, the liquid product has been shown to be effective in mitigating powdery mildew, a leaf fungus that affects most plants and grasses and restricts the flow of water and nutrients to the plant. The Company's fertilizer products can be used on a stand-alone basis or in combination with more traditional fertilizers and crop protection products. Converted Organics expects to benefit from increased regulatory focus on organic waste processing and on environmentally-friendly growing practices.

This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company's beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, including those events and factors described in "Risk Factors" in the prospectus, not all of which are known to the Company. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.

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