Converted Organics Will Be Delisted From The Nasdaq Capital Market As Of The Opening Of Business July 7, 2011

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On June 29, 2010, Converted Organics Inc. (COIN) received notice from The Nasdaq Stock Market ("Nasdaq") stating that the closing bid price of its common stock had fallen below $1.00 for thirty consecutive business days and that, therefore, the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2). The Company was provided a 180 day grace period, through December 27, 2010, to regain compliance with the listing requirement, but failed to regain compliance within that period. In a letter dated December 28, 2010, the Company was granted a second 180 day extension to meet the listing requirement, which expired on June 27, 2011. The Company was not in compliance with the listing requirement on June 27, 2011. On June 28, 2011, the Company received a notice from Nasdaq that the Company's securities will be delisted from the Nasdaq Capital Market as of the opening of business July 7, 2011. The Company has decided not to appeal the Nasdaq's determination. The Company expects to have its securities quoted on the OTC Bulletin Board upon its delisting from the Nasdaq Capital Market, or as soon as practicable thereafter. "We contemplated the reverse split to maintain our NASDAQ listing. Current market conditions indicated the reverse split is not in the best interest of our shareholders," said Edward J. Gildea, President and CEO of Converted Organics. "We understand that not effecting the reverse split means our shares may be delisted from NASDAQ, but we believe our shares will be traded on the Over the Counter Bulletin Board (OTCBB)."