CNN, page-5

Cardia Bioplastics Limited (ASX: CNN) is pleased to announce that Cardia Bioplastics Brazil has commenced production of retail carry bags and secured new contracts with initial orders equalling $1.5 million worth of annualised business. With the opening of the new production facility in São Paulo, Brazil, Cardia Bioplastics has already increased orders through new customers such as Minas Gerais supermarkets, including their high profile chain Mart Minas Supermarkets. Cardia Brazil has secured important customer wins in advance of the annual AMIS trade show (Association of Minas Gerais Supermarkets) where Cardia will exhibit its product offering in October. The timing for Cardia to set up production has been perfectly chosen. The market is responding very well to Cardia’s commitment, own operation, cost competitive, quality sustainable offering and service. With Cardia’s production capacity of 500 million bags per annum, the business is now in a strong position to meet increased customer demand.