AERT Reports No Factory Damage from Trash Fire.

SPRINGDALE, Ark. -- Advanced Environmental Recycling Technologies Inc. (NASDAQ:AERTA), a leader in wood composite technology, announced that it experienced a fire outside and adjacent to its Springdale, Arkansas facility at approximately 2 p.m. today. The fire apparently started in a trash area behind the plant and was fueled by high winds. It damaged a trash compactor, a parked truck trailer containing plastic waiting to be recycled, and a plastic water cooling tank. The plant was evacuated as a safety precaution, though extrusion operations resumed at 6 p.m. Full operations are expected to resume by morning. No further disruption to plant operations is anticipated with regards to this incident. The Company would like to thank the Springdale, Lowell, and other area fire departments, as well as the Springdale Police Department, for their prompt and professional assistance.

The statements in this press release in regards to our expected sales performance and operating results, 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 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 is contained in our filings with the Securities and Exchange Commission in Form 10-KA for the year ended December 31, 2003, filed April 29, 2004.