Applied Extrusion Technologies, Inc. Emerges from Chapter 11.

NEW CASTLE, Del. -- Applied Extrusion Technologies, Inc. announced that its prepackaged plan of reorganization became effective today and the Company has emerged from chapter 11. As previously announced, the U.S. Bankruptcy Court for the District of Delaware confirmed the Company's plan of reorganization on January 24, 2005. Through its plan of reorganization, the Company has reduced its debt by approximately $225 million. The Company also announced that it had closed its $125 million exit financing with GE Commercial Finance.

Upon the Company's emergence from chapter 11, Amin J. Khoury has retired as the Company's Chairman of the Board of Directors and CEO. Mr. Khoury commented: "I am pleased that we have been able to complete AET's recapitalization plan. AET now has a sustainable capital structure. I wish the Company every success in the future."

With the effectiveness of the plan of reorganization, the Company's common stock that traded under the symbol "AETC" has been cancelled, and the holders of common stock will receive $0.156 per share of common stock. The reorganized Company is a non-reporting company under the U.S. securities laws and its new common stock will not be publicly traded.

Applied Extrusion Technologies, Inc. is a leading North American developer and manufacturer of specialized oriented polypropylene (OPP) films used primarily in consumer products labeling and flexible packaging applications.

Except for the historical information contained herein, the matters discussed in this report are forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including those risks related to the ability to implement price increases and related volume losses, the timely development and acceptance of new products, fluctuations in raw materials and other production costs, the ability to satisfy our debt service requirements, the loss of one or more significant customers, the impact of competitive products and pricing, the timely completion of capital projects, the success of the Company's efforts to access capital markets on satisfactory terms, and to acquire, integrate, and operate new businesses and expand into new markets, as well as other risks detailed in Exhibit 99.1 of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2004 and from time to time in the Company's other reports filed with the Securities and Exchange Commission.