Applied Extrusion Technologies announces first quarter earnings.

BOSTON--(BUSINESS WIRE)--Jan. 17, 1996--Applied Extrusion Technologies Inc. (Nasdaq NMS-AETC) announced that sales, net income and earnings per share for its fiscal 1996 first quarter ended Dec. 31, 1995 were $50,251,000, or $1,403,000 and $.13 per share, respectively, versus $50,742,000, $1,327,000 and $.19 per share in the same quarter of fiscal 1995. Net income was 5.7% higher in the 1996 quarter, while earnings per share were $.06 lower due to the larger number of shares outstanding as a result of a 3,450,000 share equity offering completed in August of 1995.

President and Chief Executive Officer Thomas E. Williams said "customers and end-users of oriented polypropylene (OPP) films continued to work down their inventories during the quarter. The inventory correction has been experienced throughout the industry and is being driven by expectations of lower film prices due to rapidly decreasing resin costs. This temporary decrease in demand has resulted in lower gross margins due to near term pricing pressures and a shift in sales mix toward lower margin products. We remain confident that the fundamental drivers of the OPP films industry are strong, as evidenced by continued growth in consumption of products such as snacks, confectioneries and beverages utilizing OPP films for packaging and labeling."

"The company is designing and constructing two new OPP films lines, the first of which will begin production in the spring of this year," continued Williams. "The second line will be the world's largest OPP films line and is scheduled to be in production by the end of 1997. In anticipation of this 60% expansion in the company's OPP films capacity, we are substantially strengthening our sales, product development and other support groups. Our focus is on building highly efficient, state-of-the-art manufacturing facilities, developing new and unique high-end products and cultivating an organization to lead the OPP films industry."

Applied Extrusion Technologies Inc. is a leading developer and manufacturer of highly specialized plastic films used primarily in consumer product labeling, packaging and health care applications. Through its technological innovations, AET is a leader in North America oriented polypropylene and apertured films markets. -0-

                   Applied Extrusion Technologies Inc.
                        Statements of Earnings
                  (In thousands, except per share data)
                              (Unaudited)

                                       Three Months Ended
                                     Dec. 31,        Dec. 31,
                                       1995           1994

Sales                                $50,251        $50,742
Cost of sales                         38,906         36,286
Gross profit                          11,345         14,456

Operating expenses:
 Selling, general and
  administrative                       4,201          4,411
 Research and development              1,578          1,451
  Total operating expenses             5,779          5,862

Operating profit                       5,566          8,594

Non operating expenses:
 Interest expense, net                 3,228          4,982
 Litigation settlement                   --           1,400
  Total non operating expenses         3,228          6,382

Income before income taxes             2,338          2,212
Income tax expense                       935            885

Net income                            $1,403         $1,327

Earnings per common share             $ 0.13         $ 0.19

Average common shares outstanding     10,872          7,059

CONTACT: Applied Extrusion Technologies Inc.

David N. Terhune, 508/538-1516