MYECO GROUP LTD — Capital/Financing Update 2010

Oct 24, 2010

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THIS IS A PRORITY ITEM

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 25 October 2010

MEDIA RELEASE

CARDIA BIOPLASTICS: WORLD FIRST BIODEGRADABLE BAG MADE FROM CO₂EMISSIONS

Company now seeking international commercial partner to advance the technology

Melbourne, 25 October 2010: Melbourne packaging technology company Cardia Bioplastics Limited (ASX: CNN) has developed a world first biodegradable plastic bag created from a blend of CO ₂ emissions and starch.

Company Chairman, Mr. Pat Volpe, said Cardia has successfully completed a first production run of the revolutionary carrier bags, known as CO2S™- or carbon dioxide plus a starch based renewable resource.

“This is the first time CO ₂ emissions had been transformed in this way, and the development has the potential to revolutionize the production of bioplastics around the globe.” he said.

Pollutant CO ₂ (carbon dioxide) emissions are captured prior to being released into the atmosphere.

This pollutant is then transformed into a PPC (polypropylene carbonate) polymer and blended using Cardia’s novel technology with a renewable resource (starch) to produce the Cardia CO2S™resin. This product is then used to produce a completely biodegradable carrier bag.

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Mr. Volpe said this revolutionary development promises to offer packaging alternatives globally, with the Company now in discussion with several parties interested in the technology.

“Our new patent pending blending technology used to manufacture CO2S™compostable product will complement Cardia’s existing Bioplastics portfolio.” Mr. Volpe said.

“We are delighted to be at the cutting edge of green technology by developing a new generation of bioplastics films for carrier bags and other products that is able to transform a problematic waste pollutant into a product as an environmentally friendly alternative.” he said.

Mr. Volpe said Cardia now plans to perfect the new CO2S ™technology by increasing the ppc content (made from CO ₂ emissions) and the renewable resource component so that up to 60% less virgin oil will be used when compared to currently marketed biodegradable oil based products.

Cardia will also aim to achieve international compostability accreditation standards for CO2S™.

He said manufacturing could easily be scaled up to meet commercial volumes with the aim to provide CO2S™bags at prices below current compostable carrier bags.

Mr. Volpe added: “We are now ready to commercialize this unique and novel technology and are in the process of sourcing a suitable international partner with oil or gas wells or refineries producing CO ₂ emissions.

“If current discussions materialize into a support agreement to assist to find such a company, the market will be informed - but we are getting close in our negotiations.”

Pat Volpe Chairman

Further Information:

Pat Volpe Chairman Cardia Bioplastics +61 3 9813 2218

Emma Power Media Relations Monsoon Communications +61 3 9620 3333 +61 419 149 525

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