AERT Announces First Quarter Results.

SPRINGDALE, Ark. -- Advanced Environmental Recycling Technologies Inc. (NASDAQ:AERTA) announced that net sales for its first fiscal quarter, ended March 31, 2006, increased to $27,665,249 from $19,943,530 for the comparable period of 2005, a 39% increase.

Income before taxes increased 75% in the first quarter of 2006 to $1,162,543 from $665,477 in the first quarter of 2005. Net income was $905,942 for the first quarter of 2006, compared with $665,477 for the first quarter of 2005, a 36% increase. The Company began accruing income taxes for the first time starting in the fourth quarter 2005. Fully diluted earnings per share were $0.02 for the first quarter of 2006, compared to $0.01 for the first quarter of 2005.

Please join our conference call at 4:00 p.m. ET on Tuesday, May 16, 2006. This call will be a live webcast and available to all investors at the AERT Company web site at www.aertinc.com.

About AERT:

AERT converts reclaimed plastic and wood fiber waste into Weyerhaeuser ChoiceDek(R) outdoor decking systems, MoistureShield(R) door and window components, MoistureShield(R) CornerLoc(TM) exterior trim and fascia components and MoistureShield(R) outdoor decking. AERT operates manufacturing facilities in Springdale, Lowell, and Tontitown, Arkansas; Junction, Texas; and Alexandria, Louisiana. The Company's products are sold across North America. ChoiceDek Premium decking is marketed exclusively through Lowe's Home Improvement Warehouses throughout the United States. For more information, visit www.aertinc.com.

The statements in regards to our anticipated financial condition and our business strategy constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause our actual operating results to differ materially. Such risks and uncertainties include but are not limited to the extent of market acceptance of our products, the sensitivity of our business to general economic conditions, and the highly competitive markets in which we operate. Additional information concerning these risks and uncertainties are contained in our filing with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2005.