AERT announces restructuring for increased sales of composite building materials.

SPRINGDALE, Ark.--(BUSINESS WIRE)--Feb. 27, 1996--Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERTA, AERTZ) announced today that the Company has commenced a restructuring program intended to increase composite building material production and sales in conjunction with streamlining overhead and reducing operating costs.

The Company is focusing on increasing its composites building material production and sales and has begun phasing out of outside plastic sales to third parties by its plastics division, as increased composites demand now requires that all plastics materials produced will be consumed internally by its composite division. The Company will also take a one-time charge of approximately $550,000 for the 4th quarter of 1995, under FAS 121 guidelines, as part of this restructuring.

The Company is preparing to install additional manufacturing equipment, recently acquired through the restructuring, to complete a third composite extrusion line and expand its Junction, Texas plant, and it intends to have the line operational during the second quarter of 1996 in order to meet increasing composites sales demands of its customers.

Also, the Company will not renew its lease on its Corporate office at 901 W. Robinson in Springdale, Arkansas. It will be moving their Corporate office to its Rogers, Arkansas location at 950 N. 2nd Street during the next several months.

AERT manufactures and sells moisture-resistant and dimensionally stable composite building materials under the trade-names Moistureshield(TM), Lifecycle(TM), and CHOICEDEK(TM). According to AERT's President, Joe G. Brooks, "By focusing on increased composite production, the Company will be able to reduce costs and overhead that were previously associated with maintaining two separate business segments. With our Moistureshield and CHOICEDEK product lines now gaining increased market acceptance, we are moving forward to supply the demands of our growing customer base. These are moves that will allow AERT to increase its composites production and sales, while reducing non-productive overhead and costs of operation. In particular, this additional composites production will allow AERT to significantly expand its CHOICEDEK sales through its Weyerhaeuser marketing and distribution agreement."

CONTACT: Advanced Environmental Recycling Technologies, Inc.

Joe G. Brooks, 501/750-1299