Applied Extrusion Technologies, Inc. Provides Update on Filing Fiscal 1st Quarter 2005 Financials.

NEW CASTLE, Del. -- Applied Extrusion Technologies, Inc. (OTC: AETC.PK) today advised that it will be late in its filing of Form 10-Q for the period ending December 31, 2004, due to the timing and associated critical demands of its recent prepackaged Chapter 11 filing, including the evaluation of the financial reporting implications of the Chapter 11 filing. The Company anticipates that it will complete and file its quarterly report by February 28, 2005.

Additionally, the Company confirmed that the preparations for implementing its prepackaged recapitalization plan, approved on January 24, 2005 by the U.S. Bankruptcy Court for the District of Delaware, are proceeding on schedule and the Company anticipates that it will emerge from chapter 11 in approximately 20 to 25 days. The implementation of the recapitalization plan will significantly reduce the Company's debt and, upon emergence from bankruptcy, the Company will become a non-reporting company pursuant to the U.S. securities laws. Trade creditors will be paid in full pursuant to the plan.

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.