Applied Extrusion Technologies, Inc. Rejects Revised Huntsman Proposal.

BOSTON, MA--(BUSINESS WIRE)--September 24, 1998--Applied Extrusion Technologies, Inc. (Nasdaq NMS-AETC) announced today that, following detailed review and deliberation, its Board of Directors had unanimously rejected the revised proposal of Huntsman Packaging Corporation to acquire all of the outstanding Common Stock of AET for a cash price of $12.50 per share.

"We believe that the revised Huntsman proposal, like their previous proposal, fails in all material respects to serve the best interests of AET's shareholders," stated Amin J. Khoury, Chairman of AET's Board of Directors. "The strategic plans of the Company have been carefully thought out and well executed, as evidenced by the dramatic increase in highly efficient new manufacturing capacity, unprecedented new product development and commercialization, and assembly of an outstanding group of professionals to run the organization. In addition, the recently announced restructuring of the Company's Covington, Virginia facility will significantly enhance the profitability of the Company."

"The Board unanimously concluded that the interests of shareholders will best be served by maintaining the Company's independence. We remain convinced that successful implementation of its strategic initiatives has positioned AET extremely well for dramatically improving earnings commencing in fiscal year 1999. Given the strong prospects of the business, the Board's choice was obvious," Mr. Khoury concluded.

Applied Extrusion Technologies, Inc. is a leading developer and manufacturer of highly specialized plastic films used primarily in consumer product labeling, flexible packaging and health care applications. Through its technological innovations, AET is a leader in the North American oriented polypropylene and apertured films markets and with the acquisition of Royal Dutch/Shell Group's film operations, will become a worldwide leader in the OPP films industry.

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 timely development and acceptance of new products, fluctuations in raw materials and other production costs, 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 of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 1997 and from time to time in the Company's other reports filed with the Securities and Exchange Commission.