The student entrepreneurs behind TerraCycle International Inc. take organic garbage, feed it to worms and process the end result into organic fertilizer suitable for use on flowers, house plants and vegetables.

"The product itself is ... the first mass-produced product to be made completely from waste," said Tom Szaky, 22, Princeton, N.J.-based TerraCycle's CEO. "Every aspect of the product is some form of garbage."

Szaky and fellow Princeton student Jon Beyer took their 2001 "Worm Project," one of four finalists in the university's Business Plan Contest, and refined the manufacturing process for large-scale commercial application.

It takes three months from receiving the waste - paper sludge, coffee grounds, beer hops and other select raw organic material otherwise destined for landfills - to packaging the product using end-run sprayers, misprint boxes and old soda bottles.

The waste is mixed using special formulas, put through a computerized hypothermal composting process for four days, during which it heats up to 150 degrees, and then is fed to millions of red worms.

"The worms take about three weeks or so, and then what they poop out ... it's pretty much like solid worm poop ... we take that and separate it out," Szaky said. "Over an eight-day process we liquefy it and that's what ends up in the bottle."

A 20-ounce bottle of TerraCycle's Indoor Plant Food sells for $6.95, or a three pack for $13.90, through a link on the company's Web site, www.terracycle.net.

TerraCycle's plant food has been listed by the Organic Materials Review Institute, a nonprofit organization that reviews substances for use in organic production, processing and handling according to the standards established under the U.S. Department of Agriculture's National Organic Program.

Since the product began appearing in stores in May, about 15,000 units have been sold. And the company expects revenues to reach $1 million in its 2004-05 fiscal year, said Robin Tator, vice president of sales and marketing

According to Szaky, the privately held firm anticipates turning a profit by spring. "We're really hoping some big stores catch on to the product for their '05 buying season."

Tator said Wal-Mart and Lowe's are among the top retail chains he and the other TerraCycle executives have in their sights.

"We are definitely going to make the cut in a few of (the larger retailers)," Tator said.

TerraCycle also works to raise consumer awareness about recycling and the environment through school programs. Schools get help starting their own recycling programs, and they can sell TerraCycle plant food to raise money for school activities.

Students also are invited to join the TerraCycle production process by collecting used soda bottles and in return they receive stickers, T-shirts and other prizes in addition to seeing recycling in action.

"The kids get really excited by the fact that the bottles are actually being reused and are going to sit in their local garden store or one of the major retailers. They think that's really cool," Tator said. "In their minds they know it isn't their bottle, but if they go and visit the retailer they see it and say "Hey, Mom, that could be my bottle.'"