AERT Completes Fourth Extrusion Line; Weekly Sales Top $300,000, Head for $350,000.

SPRINGDALE, Ark.--(BUSINESS WIRE)--Sept. 17, 1998--Advanced Environmental Recycling Technologies Inc. (NASDAQ:AERTA) ("AERT") announced today that it had completed the final phases of construction, installation and start-up of its fourth extrusion line.

Located in Springdale, Ark., improvement in this fourth production line is credited for pushing weekly sales above $300,000. Construction, start-up and adjustments of the new plant and the fourth extrusion line took more than seven months.

Joe G. Brooks, president of Advanced Environmental, said "This has been both an exciting and a frustrating time for us and for our shareholders, but we finally overcame the construction and equipment delays. Now the fourth production line is a finely tuned process. With strong customer demand and all production lines now headed to optimal productivity, we'll soon be consistently crossing the $350,000 weekly sales number."

As the Springdale facility can house four more production lines, the Company is in the process of constructing its fifth line, scheduled to begin production this fall. The fifth production line will allow the Company to streamline its production focus, improve gross margins, increase cash flows and target annual sales towards the $25-$30 million level.

Advanced Environmental operates in the several billion dollar plus markets of the U.S. Homebuilding Industry. It is a high growth company, which has developed and patented a process to manufacture a growing line of patented and engineered building materials, primarily made from such recycled substances as waste wood fiber and recycled plastics. The Company has been awarded 14 patents and has two patents pending. Advanced Environmental currently operates two manufacturing facilities, one in Junction, Texas, and a second facility in Springdale.