FOR IMMEDIATE RELEASE

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 1 May 2014

Palerang Council rolls out City-to-Soil organic waste diversion program using Cardia Bioplastics organic waste management products

Cardia Bioplastics Limited is pleased to announce that has ordered 350,000 Cardia Compostable kitchen tidy bags for the commercial roll out of its City-to-Soil organic waste diversion program.

Palerang Council joined the City-to-Soil program and commenced their landmark validation trial in February which will run until 30 June 2015. This innovative program closes the food production loop and allows consumers to return unwanted and un-used organic material to the environment to replenish soil nutrients.

Diverting organic waste from landfills using compostable bin liners has become essential as landfills are filling up. We are seeing rapid growth in the uptake of our Cardia Compostable organic waste management

systems, amongst Councils within Australia and throughout the world. For personal use only use personal For Please find attached the media release.

Richard Tegoni Chairman Cardia Bioplastics Limited MEDIA RELEASE

1 May 2014 For Immediate Release

Palerang Council rolls out City-to-Soil organic waste diversion program using Cardia Bioplastics organic waste management products

 Palerang Council places order of 350,000 Cardia Compostable kitchen tidy bags for commercial roll out of City-to-Soil program  City-to-Soil kitchen waste collection program gains momentum at Palerang Council  First collection diverted almost 13 tonnes of green waste from Council landfills  Cardia Compostable kitchen tidy bags rolled out to 2,000 households  Further validates Cardia Compostable waste management products for organic waste diversion programs

Cardia Compostable kitchen tidy bags used for Palerang Council’s City-to Soil organic waste diversion program

Cardia Bioplastics Limited is pleased to announce that Palerang Council has ordered 350,000 Cardia Compostable kitchen tidy bags for the commercial roll out of its City-to-Soil organic waste diversion program.

Palerang Council joined the City-to-Soil program and commenced their landmark validation trial in February which will run until 30 June 2015. This innovative program closes the food production loop and allows consumers to return unwanted and un-used organic material to the environment to replenish soil

nutrients. For personal use only use personal For Currently, most people put organic material, such as food scraps and garden waste, into their red-lidded residual waste bin. In fact, waste in the average red-lidded bin is about 50% organic material. This adds up to a significant amount of material going into landfill that could be better used elsewhere, such as compost for local growers to improve soil fertility.

The Palerang Council trial is running in Braidwood, and , with material collected going to a private facility for composting. Bill Ellison, Palerang Councils’ Director of Infrastructure Planning said, “Palerang Council is very excited about the initial results of the City-to-Soil program. The first collection sucessfully diverted almost 13 tonnes of organic waste from landfills, organic waste that once composted will now be used for soil improvement by local growers. ” Mr Ellison continues, “ We are now implementing the full program roll out and are certain that we will have great support from our local community in this innvative landfill diversion project.”

Cardia Bioplastics Managing Director, Dr Frank Glatz adds, “We are very excited to be part of the Palerang Council’s City-to-Soil program and commend this innovative initiative and the Council’s foresight. Cardia Bioplastics organic waste mangement products were developed for programs such as this.”

Dr Glatz continues, “As a business, we recognised that diverting organic waste from landfills using compostable bin liners has become essential as landfills are filling up. We are seeing rapid growth in the uptake of our Cardia Compostable organic waste management systems, amongst Councils within Australia and throughout the world.”

About Cardia Bioplastics Cardia Bioplastics Limited (ASX: CNN) is an Australian developer and manufacturer of sustainable resins, films, bags and custom finished products derived from renewable resources for the global packaging and plastic products industries. Cardia holds a strong patent portfolio of sustainable resin technologies. Established in 2002 with its main headquarters in Melbourne, Australia, Cardia also has offices in USA, Brazil, Malaysia and China. Cardia’s Product Development Centre and manufacturing plant is in Nanjing, China. For further information please visit www.cardiabioplastics.com.

About Palerang Council The Palerang Council area comprises an area of 5200 km² and includes the towns of Bungendore, Braidwood and Captains Flat, and the villages of Araluen, Mongarlowe, Majors Creek and Nerriga. It also encompasses the rural residential settlements of / and Sutton East, , Burra, and Stoney Creek, Hoskinstown and Rossi. Palerang is unique in NSW Local Government Areas in that it has a very high percentage of rural residential living. In recent years, boutique rural industries such as vineyards, olive orchards and alpaca studs have proliferated across the shire. Palerang has the biggest recreational horse population in the . Palerang joined the City-to-Soil program in January 2014, for further information please visit

www.palerang.nsw.gov.au For personal use only use personal For Further information:

Dr Frank Glatz Nadya Krienke-Becker Managing Director Global Head of Marketing Cardia Bioplastics Cardia Bioplastics +61 400 930 530 +61 414 672 863 [email protected] n.krienke- [email protected]