Plantic Technologies Limited ("Plantic")


Plantic(R) Sheet Approved as Compostable by the Biodegradable Products Institute
and US Patent Granted


New York, USA and Melbourne, Australia - 28 February 2008 - The Biodegradable
Products Institute (BPI) has approved Plantic(R) thermoforming sheet as
"compostable" and the US patent application for Plantic's thermoforming
formulation has been granted (7,326,743). Additionally, the Food & Drug
Administration (FDA) food contact status has been confirmed.

The BPI in New York has approved Plantic's thermoforming material, paving the
way for a successful US launch of Plantic(R) sheet material that can be used for
a wide range of thermoforming applications. This accreditation will allow
Plantic to display the "Compostable" logo, designed to certify and identify
plastic products that will disintegrate and biodegrade completely and safely
when composted in a municipal or commercial facility. The accreditation also
assures customers and consumers in the US that Plantic(R) products as thick as
1mm comply with the ASTM standard D6400. The ASTM standard D6400 imposes strict
requirements in terms of biodegradability, compostability, heavy metals levels,
and ecotoxicity, as measured by approved independent laboratories. Plantic has
also been awarded equivalent certification in Europe by Din-Certco and
AIB-Vincotte.

Furthermore, Plantic(R) products can now be safely used for a range of food
applications in the USA. Legal firm, Keller & Heckman, in Washington D.C. have
confirmed that Plantic(R) sheet for thermoforming complies with FDA requirements
for use in contact with foods such as chocolates and cookies. Keller & Heckman
are respected nationwide in the USA as experts on regulatory law in the food,
food additives and plastics industries.

The patent disclosing the Plantic(R) thermoforming technology has been granted
in the US. Brendan Morris, Chief Executive Officer, Plantic Technologies, said,
"This gives Plantic's customers in the US the competitive advantage of a unique
innovative product for years to come. It provides assurance to Plantic's
alliance partner in the US, DuPont, that the intellectual property is
patent-protected."

DuPont will market and distribute Plantic's starch-based resins and sheet
products under the DuPontTM Biomax(R) family of products. The Plantic US patent
discloses the invention of a biodegradable polymer based on hydroxypropylated
high-amylose starch and packaging products that may be manufactured from it,
including thermoformed rigid packaging products and film.

Marks & Spencer introduced Plantic's environmentally friendly packaging for its
range of Swiss chocolates. In commenting on the decision, Helene Roberts, Head
of Packaging, Foods, Marks & Spencer, said, "Our decision to incorporate Plantic
(R) packaging has grown from our aim to reduce the amount of packaging that we
use by 25 per cent over the next five years and use sustainably sourced
packaging materials and materials that are easily composted or recycled."

The full Annual Report will be posted to shareholders on 29th April 2008 and
will also be available on the Company's website www.plantic.com.au. Copies will
be available from that date from the Company's office, 51 Burns Road, Altona,
VIC, 3018, Australia and from the offices of Pelham Public Relations, No. 1
Cornhill, London EC3V 3ND, United Kingdom.

In 2008, Plantic expects sales to increase, particularly in view of the distribution agreement with DuPont and the continuing projects with brand owners for rigid sheet material.

'Japan is a key market for biodegradable plastics and DuPont is ideally placed to provide Plantic with distribution in this important market,' the bioplastics company said in a statement.

Amylose is the Key
Plantic technology is based on high amylose corn-starch, whose unique chemical properties allow for a diverse range of applications, from the production of resin for on sale to materials manufacturers to the extrusion of sheets for use in food, cosmetic and pharmaceutical packaging. Plantic Technologies also owns the technology which allows this bioplastic to be modified to suit an even broader range of needs across the complete spectrum of conventional plastics conversion and end user applications, including thermoforming, injection molding, film extrusion and blow molding, as well as rigid and flexible packaging.

Plantic's unique technology ensures a diverse range of bioplastics that can be produced cost-effectively, without complicated manufacturing processes or unnecessary wastage. 40% less real energy is required to produce Plantic bioplastic material than conventional petrochemically derived plastics' which don't biodegrade and create still further costs in waste management. Plantic-based products also offer a range of immediate performance benefits. Given that they can also be customised to work with conventional plastics, the potential for the technology is effectively unlimited, with cost savings and improved environmental impact increasing exponentially with each new application.

The demonstrable benefits that Plantic technology offers have not been lost on the world's largest and most successful companies. The list of premium quality users, customers, distributors and research and development partners continues to grow as world markets become ever more conscious of the need for more cost effective and environmentally friendly solutions to the problems of plastics manufacture and waste reduction.

Cadbury Schweppes has been using the Plantic eco-friendly
packaging since 2002. They aim to implement 100%
recoverable or biodegradable packaging across the entire
Cadbury Schweppes range by 2010.

Seedling punnets and planter pots are traditionally made
of durable plastic such as polypropylene. These items
successfully perform the function of containing the seeds
and plants throughout their propagation and growth,
including multiple handling and transport events at
nurseries and retail outlets, but are sent to landfill once the
plants have been planted out into garden beds.
Plantic pots, however, offer the opportunity to dispose the
pots into domestic compost, where they will biodegrade to
form compost for future plantings. And with innovative pot
design, it is possible to plant both pot and plant together,
avoiding the need to disturb the sensitive root systems.
The pot will biodegrade in the soil, leaving the plant to
flourish

Sales volumes (in metric tonnes) increased by 170% in the second half of 2008, compared to the same period in 2007, and 120% compared to the first half of 2008.

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