Converted Organics Announces Corporate Restructuring; Cost Reductions

Converted Organics COIN announced today the implementation of a series of cost reductions in all areas of its business which will reduce overhead expense and streamline operating activities. The reductions include elimination of overhead positions including a senior management position in TerraSphere Systems, the Company's vertical farming operation, reduction in compensation to all executives and management ranging from 20% to 50%, but no reduction for operating personnel resulting in an overall payroll reduction of 20% and a 35% reduction in other operating expenses. The restructuring is expected to reduce current ongoing operating expenses by 25% between now and December 31, 2011. Commenting on the restructuring plan, Edward Gildea, President and CEO of Converted Organics said, "These important expense reductions will allow us to prioritize and conserve resources while we continue focusing on the growth and development of our TerraSphere Vertical Farming and Industrial Waste Water divisions. At the same time, we will continue to grow our profitable California Organic Fertilizer business and consider other synergistic transactions and opportunities to integrate with our sustainable businesses that benefit the environment."