AERT Unveils DreamWorks Designer-Decking for the New Millennium.

SPRINGDALE, Ark.--(BUSINESS WIRE)--Feb. 12, 1999--Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERTA) ("AERT") today unveiled its newest product line, DreamWorks(TM) at the trade shows in Springdale, San Antonio and Dallas.

DreamWorks(TM) is on display at booth number 77 at the Northwest Arkansas Homebuilders' Show at the Holiday Inn Convention Center in Springdale, Ark., at booth number 143 at the San Antonio Home and Garden Show at the Alamodome and at booth numbers 4024 and 4026 at the North Texas Home and Garden Show at the Dallas Convention Center in Dallas.

DreamWorks(TM) is manufactured using wood fiber and a blend of recycled high and low density polyethylene plastics. It is a specially extruded product targeted to the high-end segment of the homebuilding market and is designed to complement the Company's existing ChoiceDek(TM) line. It is a technologically protected, stability enhanced, wood grain-embossed designer product. Over 100 homes throughout Texas have had the opportunity to field test the product and the Company spent the past three months incorporating the results into refining the line.

Joe G. Brooks, Advanced Environmental's CEO, stated "This is a customer driven opportunity, which Advanced Environmental is working to positively address. With this and other AERT products, the Company is going from a cash neutral basis to a cash flow positive one. With this expansion in product line, the Company will be shortly in position to increase its decking sales to $50 million annually."

Certain of the statements made in this press release by Joe G. Brooks are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995, including those concerning the timing of the expansion at the Springdale facility and provisions of revenue streams from all such production lines. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include the ability of the Company to timely and correctly execute its expansion and construction plans and other risks more fully described in the Company's Form 10-K for fiscal year 1997 and Form 10-Q for the period ended Sept. 30, 1998. The 10-K for fiscal year 1998 will be released late March 1999.