August 26th

Converted Organics Announces Strategic Alliance with Gro Group Inc. to Service up to 15,000 U.S. Nurseries, Retailers

Converted Organics Inc. (NASDAQ:COIN) announced today that the Company will work with Gro Group Inc. as a manufacturing partner in 2009, supplying its organic granular fertilizer to seven of Gro Group Inc.’s major distributors, which collectively service up to 15,000 lawn and garden retailers throughout the United States. Converted Organics’ organic granular fertilizer is for use on lawns, turf, flowers and gardens.

“Converted Organics is extremely excited to partner with Gro Group distributors to provide lawn and garden retailers with our high-quality, all-natural, organic granular fertilizer,” said Richard P. Aleo, Executive Vice President of Sales and Marketing for Converted Organics. “Our product compliments and supports Gro Group’s objective of empowering distributors to provide retailers with a competitive edge in the marketplace by supplying the finest quality products at the best dollar value.” Gro Group Inc. distributors service over 90 percent of the independent lawn and garden retailers in the U.S. and Canada, and are represented in every major U.S. and Canadian market. Converted Organics will showcase its all-natural soil amendment and fertilizer products in seven of Gro Group Inc.’s regional distributor retailer trade shows throughout the U.S. during September and October, 2008.

“Participating in Gro Group’s distributor retailer trade shows augments Converted Organics’ ongoing strategic sales and marketing efforts by providing well-attended venues for educating existing and potential customers about our unique product line,” said Mr. Aleo.

About Gro Group Inc.

Incorporated in 1974, Gro Group Inc. is a North American marketing group, equally owned by Gro Group Distributors, bringing together leading manufacturers, distributors, and retailers in the lawn and garden industry. Gro Group provides information exchange, group purchasing, the Growise Center Program, and the GroSource Plus Program offering leading, independent, regional retailers integrated marketing and merchandising opportunities. For more information about Gro Group Inc., and to view the easily downloadable Gro Group Advantage PowerPoint Presentation, please visit www.grogroup.com.

About Converted Organics Inc.

Converted Organics (NASDAQ:COIN), based in Boston, MA, is dedicated to producing valuable all-natural, organic soil amendment or fertilizer products through food waste recycling. The company uses proven, state-of-the-art technologies to create a product that helps grow healthier food and improve environmental quality. Converted Organics plans to sell and distribute its environmentally-friendly fertilizer products in the retail, turf management, and agribusiness markets.

Converted Organics\' fertilizer products will be produced in both a dry pellet and liquid concentrate. 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%, 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. Increased use of nitrogen in commercial agriculture and turf grass applications, such as 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 will reduce chemical run-off to streams, ponds and rivers, an objective with significant long-term benefits to the environment.

The products have a long shelf life compared to many other organic fertilizers. In a number of lab and field trials, the liquid product has been shown to be effective in mitigating powdery mildew, a leaf fungus that effects most plants and grasses and restricts the flow of water and nutrients to the plant. 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.

This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as \"may,\" \"should,\" \"plan,\" \"intend,\" \"potential,\" \"continue,\" \"believe,\" \"expect,\" \"predict,\" \"anticipate\" and \"estimate,\" the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company\'s control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company\'s beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, including those events and factors described in \"Risk Factors\" in the prospectus, not all of which are known to the Company. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the Company\'s business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.

COIN-G

PR Financial Marketing
Jim Blackman, 713-256-0369
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