BOSTON - Converted Organics Inc. announced today that it has entered into a license agreement with MassOrganics I, LLC regarding the use of Converted Organics' proprietary system for the manufacture of organic fertilizer products. MassOrganics I will install and operate the system at a new manufacturing facility to be constructed at The Sutton Commerce Park in Sutton, Massachusetts. In March, 2009 Converted Organics received a permit from the Commonwealth of Massachusetts' Department of Environmental Protection to operate a food waste processing facility at the site.

As part of the agreement, MassOrganics I will pay a licensing fee to Converted Organics of $1,000,000 and a royalty of $20 per ton of fertilizer sold from the facility. Converted Organics has agreed to give MassOrganics I the right of first refusal for the development of similar facilities in Maine, Connecticut, New Hampshire, Rhode Island, Massachusetts, and Vermont.

"Entering into a license agreement with MassOrganics I is an efficient way to establish a third manufacturing facility in the U.S. while at the same time bringing an infusion of capital to Converted Organics," said Edward J. Gildea, President of Converted Organics. "Per our agreement with MassOrganics I, Converted Organics will also have the right to purchase and market the organic fertilizers produced in Sutton, which will enable us to provide our customers with greater access to our unique fertilizer products."

Robert Simmons, Managing Director of New York-based Highland Project Capital Group, a co-owner and co-developer of the facility, commented, "Our firm's relationship with Converted Organics in the development of projects in Massachusetts and other nearby states will enable us to efficiently produce liquid and solid organic fertilizer and market those products to an established and growing customer base. The value of producing Converted Organics' products, with their USDA certification and the positive results of more than 15 university-managed growth trials, cannot be overstated."

About MassOrganics I, LLC MassOrganics I, LLC is owned by EarthOrganics Corporation, a Delaware-based company operated by investors including partners who have experience operating recycling facilities and who have expertise in Aerobic Thermophilic digestion, design/build specialists (such as Jim Coull, founder of JM Coull, Inc. www.jmcoull.com) and equity investors who specialize in project finance, such as Highland Project Capital Group, LLC (179 East 79th Street, Suite 6A, New York, NY, 10075 www.highlandpcg.com).

About Converted Organics Inc. Converted Organics (NASDAQ:COIN) (www.convertedorganics.com), based in Boston, MA, 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 wastes into dry pellet and liquid concentrate 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.

Converted Organics' flagship manufacturing facility is located in Woodbridge, New Jersey. A second manufacturing site is located in Gonzales, California. Converted Organics' products have been tested in numerous field trials for more than a dozen crops with the result that, on average, the net value of the farmer's crop increased 11-16 percent, depending on the particular crop and product application. This is due, in part, to the disease suppression characteristics of the product, which reduce or eliminate the need for other costly, often toxic, crop protection applications. In a number of lab and field trials, Converted Organics' liquid product has been shown to be effective in mitigating powdery mildew, a leaf fungus that affects most plants and grasses and restricts the flow of water and nutrients to the plant. Increased use of nitrogen in commercial agriculture and turf grass applications, such as on golf courses, has reduced the soil's ability to absorb nitrogen and other nutrients. Using the products produced by Converted Organics helps restore the soil by replenishing these micronutrients. This reduces the amount of nitrogen required in a virtuous cycle that benefits from long-term use. As a result, use of the product reduces chemical run-off to streams, ponds and rivers, an objective with significant long-term benefits to the environment.

Converted Organics' products have a long shelf life compared to many other organic fertilizers. The Company's fertilizer products can be used on a stand-alone basis or in combination with more traditional fertilizers and crop protection products. Converted Organics expects to benefit from increased regulatory focus on organic waste processing and on environmentally-friendly growing practices.

Media Contacts: PR Financial Marketing Jim Blackman 713-256-0369 jim@prfmonline.com or Sterling Communications Pat Fiaschetti 908-996-7945 sterling.pf@att.net