October 7, 2008
Converted Organics Inc. Announces Initial Sale of Organic Fertilizer to Matosantos for Puerto Rico Market
Converted Organics Inc. (NASDAQ:COIN) announced today that Matosantos Commercial Corporation of San Juan, Puerto Rico placed its initial order for the Company's organic fertilizer products for the spring 2009 season. The order, totaling 66 tons of product, includes a variety of retail package sizes of Converted Organics' granular 8-1-4 lawn and turf product, as well as the Company's granular 4-2-8 flower and shrub formulation.
"As an island economy, we are aware of the need to adopt environmentally-sound practices. This is a good time to introduce these quality, all-natural products from Converted Organics to both the retail and commercial sectors," said Geronimo Matosantos, Executive Vice President of Marketing for Matosantos Commercial Corporation. "In addition to the large warehouse distributors, Puerto Rico has many destination resorts that will be eager to adopt this product line."
"A product order from a company as highly-respected in Puerto Rico and the Caribbean as Matosantos is a significant milestone for Converted Organics since Matosantos serves a year-round market that is exhibiting strong growth, especially in the destination golf resorts sector," said Edward J. Gildea, President of Converted Organics. "We are very pleased to partner with Matosantos and are confident that their initial order for Converted Organics' products will be the first of many."
Converted Organics signed an agreement with Matosantos in March, 2008 for Matosantos to act as exclusive distributor of Converted Organics' organic fertilizer products in Puerto Rico.
About Matosantos Commercial Corporation
Matosantos Commercial Corporation is a fast-growing, family-owned corporation dedicated to the marketing and distribution of institutional and consumer products in Puerto Rico and the Caribbean. Established in 1940 as a distributor of paper goods by Manuel Matosantos, today Matosantos Commercial has developed brands that are market leaders in a wide range of product categories. The corporation is currently steered by the second generation of family members: Manuel A. Matosantos Jr., President, Geronimo E. Matosantos, Executive Vice-President and Gloria M. Matosantos, Vice President, who oversee an operation of over 170 employees.
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.
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