Converted Organics Inc. (NASDAQ:COIN) announced today that on July 15, 2009 it entered into a definitive agreement with an institutional investor to raise gross proceeds of approximately $2,000,000, before placement agent's fees and other offering expenses, in a registered direct offering.

Under the terms of the transaction, Converted Organics will issue to the investor 1,961,000 shares of its common stock and will issue to the investor five-year warrants to purchase 585,000 shares of common stock exercisable at any time on or after January 15, 2010 at an exercise price of $1.25 per share.

The closing of the offering is expected to take place subject to the satisfaction of customary closing conditions.

Chardan Capital Markets, LLC acted as the sole placement agent for this transaction.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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, and a third is under development in Johnston, Rhode Island. 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.