AERT Reports 4th Consecutive Profitable Quarter Net Income $208,443.

Business Editors

SPRINGDALE, Ark.--(BUSINESS WIRE)--May 7, 2002

Advanced Environmental Recycling Technologies Inc. (Nasdaq:AERTA), a leader in wood composite technology, announced that net sales for the quarter ended March 31, 2002, increased 18.8% to $9.2 million, up from $7.8 million for the quarter ended March 31, 2001.

The net income for the quarter ended March 31, 2002 was $208,443, a $239,595 improvement over the loss of $31,152 for the quarter ended March 31, 2001.

An announcement of the earnings conference call will be made following the release of the Company's Form 10-Q next week.

Advanced Environmental Recycling Technologies Inc. "AERT", a leader in wood composite technology, was established in 1989, and has developed, patented and commercialized several technologies which significantly advance state-of-the-art recycling of plastic scrap and related manufacturing processes. Marketed under the trade names MoistureShield(R), LifeCycle(R), and Weyerhaeuser ChoiceDek(R), AERT's products are manufactured in Junction, Texas, and Springdale, Ark.

The statements in this press release regarding the Company's sales performance 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 the Company's actual operating results to differ materially. Such risks and uncertainties include the extent of market acceptance of the Company's products, the sensitivity of the Company's business to general economic conditions, and the highly competitive markets in which the Company operates. Additional information concerning these risks and uncertainties is contained in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended Dec. 31, 2001.