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Beacon Equity Research Featured Company: Cereplast, Inc. (CERP.OB)

Cereplast, Inc. (CERP.OB) markets two families of bio-based resins: Cereplast Compostables™ and Cereplast Hybrid Resins™. The company focuses on the development, manufacturing and marketing of bio-based resins. These resins are structured to supplement or eventually replace more commonly utilized petroleum-based plastics in a wide range of converting applications.

Two key drivers for bio-plastics market growth are rising oil prices and increasing environmental concerns. The processing time of Cereplast Hybrid Resins™ products are the equivalent cycle time as the more traditional plastics. However, Hybrid Resins™ require less energy since their machine temperatures are proven to be lower. In addition, the rising cost of oil prices has begun to increase the appeal of bio-based plastics as well as environ¬mental concerns. The government now encourages the industry’s adoption of biodegradable plastics.

Cereplast Compostables™ assist the needs of the food service disposable packaging market, while Cereplast Hybrid Resins™ may replace more commonly used petroleum-based plastics in multiple consumer markets. With the launch of its Hybrid Resins™ product line, Cereplast, Inc. has become a major competitor in a small pool of companies providing bio-plastics as substitutes for petroleum-based plastics.

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