updated 11/16/2010 1:46:39 PM ET 2010-11-16T18:46:39

BOSTON, Nov. 16, 2010 (GLOBE NEWSWIRE) -- Converted Organics Inc. (Nasdaq:COIN) today held a conference call with shareholders to discuss the Company's results for the third quarter ended September 30, 2010 and business developments including the success of the California organic fertilizer facility, growth of the Industrial Wastewater division, and the recent TerraSphere acquisition. Certain highlights of the call include:

  • Third quarter revenue totaled $808,000, an increase of 16% over the third quarter of 2009.
  • The Company achieved gross margin of 27% from its California facility in the third quarter of 2010, compared with a 12% gross margin for the third quarter of 2009.
  • Revenue for the nine months ended September 30, 2010 increased 51% to $2.7 million, compared with $1.8 million in the nine months ended September 30, 2009.
  • On November 12, 2010, the Company closed on agreement to acquire TerraSphere Systems LLC in a stock transaction
  • Company Eliminates $43.6 Million of Outstanding Debt, Liabilities and Future Obligations
  • 2011 Expected Cash Savings of Approximately $9 Million
  • Two Oppenheimer Funds Become Preferred Equity Shareholders
  • $600,000.00 in Cash Added to the Balance Sheet

Edward Gildea, President and CEO of Converted Organics, said, "We have been able to restructure the Company to put it in a position to thrive and grow in an exciting business composed of a number of sustainable enterprises. Our business is now at the intersection of three dynamic interrelated environmentally-responsible business opportunities: Agriculture, Waste and Water. The Company controls cutting edge vertical farming growth technologies, sustainable organic fertilizers, and technology to clean contaminated water and recycle wastes."  Mr. Gildea continued, "The organic fertilizer business is cash flow positive now, after the closure of the Woodbridge facility, and we expect it will increase in profitability and cash as it increases in sales in 2011. We expect that the Industrial Wastewater business will produce revenue and will be cash flow positive by the end of 2011. TerraSphere produced more revenue in 2010 than Converted Organics achieved, and we expect that TerraSphere will continue to produce significant income for the Company in 2011."

A digital replay of today's call will be available by telephone for two weeks and may be accessed by dialing (888) 632-8973, or (201) 499-0429 from international locations, using digital replay code 15075356(#).

About Converted Organics Inc.

Converted Organics (Nasdaq:COIN) ( www.convertedorganics.com ) is dedicated to producing high-quality, all-natural, organic soil amendment and fertilizer products through food waste recycling. The Company uses its proprietary High Temperature Liquid Composting (HTLC) system, a proven, state-of-the-art microbial digestion technology, to process various biodegradable food and agricultural wastes into liquid organic fertilizers that help grow healthier food and improve environmental quality. Converted Organics sells and distributes its environmentally-friendly fertilizer products in the retail, professional turf management, and agribusiness markets.

The Converted Organics Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7431

About TerraSphere Systems, LLC

TerraSphere Systems ( www.terraspheresystems.com ) is dedicated to building highly efficient systems for growing organic fruits and vegetables in a controlled indoor environment. TerraSphere's clean technology helps to promote the sustainable consumption of natural resources by accelerating plant production and maximizing crop yields, while improving environmental footprints through the reduction of carbon emissions and fuel use associated with traditional crop production and distribution. TerraSphere's unique, environmentally and socially-responsible business model helps to facilitate job creation and diverse, community-based workforces. TerraSphere believes its technology can potentially revolutionize access to organic produce for both remote and urban communities, alleviate land management issues for agricultural producers, and ease hunger crises for the world's growing population.

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. Forward-looking statements include, without limitation, the Company's ability to continue to meet market demand for its organic fertilizer products throughout the reorganization, to allow it to improve its competitiveness within the organic fertilizer market, and to better pursue growth through acquisitions. Forward-looking statements include, the TerraSphere transaction being in the long-term interest of the Company and that TerraSphere makes significant contributions to the combined company going forward. 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, not all of which are known to the company, described most recently in the "Risk Factors" section in the Company's most recently filed annual report on Form 10-K. 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

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