October 9, 2008
Converted Organics Inc. Announces Strategic Relationship With Leading Waste Management Firm United Trucking Inc.
Converted Organics Inc. (NASDAQ:COIN) announced today that the Company and waste management firm United Trucking Inc. of Mount Laurel, New Jersey have agreed to cooperate in the collection, processing and conversion of food waste from United Trucking food service clients.
"We are very pleased with our relationship with Converted Organics. We strive to provide our customers with the best and most economical way to handle their waste. We can now offer our food service customers a better option for their waste," said Gail Rosati, President of United Trucking. "We are always searching for new ways to service our customers, demonstrate our commitment to the environment, and add value in the communities we serve. Our relationship with Converted Organics is part of this commitment."
"United Trucking is an important player in the waste management industry and this relationship is another indication of the acceptance of Converted Organics' prices and process. United's food service customer base is significant and getting larger all the time," said Jack Walsdorf, Vice President of Converted Organics Inc. "With leading companies like United Trucking using our facility in Woodbridge, our tonnage targets for over-the-scale waste is well ahead of our plan. Our technology requires source separated food waste, and United Trucking is well-positioned in the area to meet this need."
About United Trucking
United Trucking's goal with Converted Organics is to partner with our food service clients in maximizing organic diversion and optimizing collection. This will be accomplished through our tested and proven Five-Point Organic Diversion Program. United Trucking's team has brought organic diversion success to New England, New York, New Jersey, and other Mid-Atlantic States, working with State Departments of Environmental Protection, U.S. EPA, state supermarket associations, and varied trade associations.
United Trucking and its affiliate, Motion Trucking, Inc., have provided hauling and disposal services for food waste, MSW, demolition, soil and recyclable materials for the past 19 years, operating approximately 50 tractor trailers daily. Services are provided for national customers as well as several private transfer stations in New York, New Jersey and Pennsylvania.
United Trucking holds an A901 New Jersey waste hauling license along with a WBE and SBE certification. Memberships include the New Jersey Food Council, the Solid Waste Resource Renewal Group and NJ Renewable Energy Committee.
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.