Certified Organics First Half Preliminary Result

July 25 2005

CERTIFIED ORGANICS 2005 FIRST HALF PRELIMINARY RESULT

SALES REVENUE: $502,000 - UP 10.1% ON SAME PERIOD LAST YEAR

Statement made by David Warrick, Managing Director, Certified Organics Limited

Certified Organics has released its unaudited trading results for the half year ended 30 June 2005, announcing an increase in sales to $502,000, up some 10% on the previous year, reducing its operating loss to $599,000 from $640,000 in the first half of 2004.

As previously advised to the market, the key factor in this result has been growth in sales to the New Zealand commercial agricultural market.

The Company also recorded an encouraging export sales performance, primarily to Australia. The Government of South Australia has placed increased orders for its Branched Broomrape eradication project, extending the scope of its use of Certified Organics' "Interceptor" products in the 2005 season's programme.

Sales in the second half of the year should benefit from the Company's upgrading of its retail marketing approach, where it has been working to rectify deficiencies it had previously identified.

At the Meeting held at the end of June, the Company's shareholders approved the proposed acquisition of the New Zealand Nature Company. Since then, the Company has successfully completed a fully-subscribed share placement and, today, launches the partially-underwritten rights issue that will complete the capital raising for the acquisition.

ENDS

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