News

Converted Organics Receives Approvals in Rhode Island for the Development of a Third Manufacturing Facility

BOSTON-(Business Wire)-August 12, 2008 - Converted Organics Inc. (NASDAQ:COIN) announced today that the company is poised to proceed with the development of its third organic soil amendment and fertilizer manufacturing facility in the U.S.

On August 1, the Rhode Island Industrial Facilities Corporation (RIIFC) gave initial approval to the Company's Revenue Bond Financing Application for up to $15 million for the construction of the new Converted Organics facility in Johnston, R.I. On August 5, the Rhode Island Resource Recovery Corporation (RIRRC) gave final approval to Converted Organics to lease nine acres of land in the newly created Lakeside Commerce Industrial Park in Johnston. Converted Organics previously filed an application with the Rhode Island Department of Environmental Management for the operation of a Putrescible Waste Recycling Center at that site.

"We are extremely pleased to have begun the process that we believe will enable Converted Organics to develop our third state-of-the-art manufacturing facility in two years," said Edward J. Gildea, President of Converted Organics. "The Johnston, Rhode Island plant will play an integral role in helping us meet demand from our agribusiness, municipal, retail and turf management customers for our all-natural organic fertilizers. We look forward to continued progress on the development of this site. Upon completion of this plant, Converted Organics' three plants will be permitted to process up to 850 tons of food waste per day."

"As an innovator in green technologies, the addition of Converted Organics to Rhode Island is an important win in our economic development plan to support new and emerging businesses, and I welcome them to the State," said Rhode Island Governor Donald L. Carcieri. "Green businesses create new 'green collar' jobs, as well as solid opportunities to connect existing small and local businesses to the emerging market opportunities, meeting the demand for green goods and services."

Converted Organics began operations at the Company's new flagship organic soil amendment and fertilizer processing facility in Woodbridge, New Jersey in June. Converted Organics is also currently expanding capacity at the company's West Coast manufacturing plant in Gonzales, CA, which was acquired in January of this year.

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 effects 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. Forward looking statement include the Company's ability to obtain final approvals from the RIIFC for the Company's Revenue Bond Financing Application, the Company's ability to complete a bond financing in the future if such approvals are obtained, and the Company's ability to timely complete construction of a new facility in Rhode Island within two years. 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.

COIN-G

Send this news item to a friend.

Print This Page