AERT Receives Proceeds from Warrant Exercise.

SPRINGDALE, Ark. -- Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERT) announced the receipt of approximately $834,000, representing the exercise of the remaining 1,771,792 Class H Warrants originally issued to Marjorie S. Brooks in 1995 in return for certain financial accommodations provided to the Company. The Warrants, which were due to expire on February 21, 2007, were exercisable at prices from $0.46 to $0.48, equal to the per share market value of the Company's Class A common stock on the date the warrants were issued in 1995. The proceeds from the warrants were added to the general working capital funds of the Company. Within the next sixty days, Mrs. Brooks plans to sell the shares to immediate family members in a private transaction as part of the estate planning process.

About AERT:

Since 1989, AERT has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. With its constantly evolving portfolio of patented and proprietary recycling technologies, AERT has been widely recognized as a leader in resource conservation innovation, receiving the EPA Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking. AERT converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. AERT operates manufacturing facilities in Springdale, Lowell, and Tontitown, Arkansas; Junction, Texas; and Alexandria, Louisiana. The Company's products are sold across North America. For more information, visit www.aertinc.com.