AERTA Advanced Environmental Recycling Technologies (MM)

Advanced Environmental Recycling Technologies Inc. (NASDAQ:AERTA) announced that unaudited net sales for its third quarter ended September 30, 2005, increased to $23,099,857 from $18,975,717 for the comparable period of 2004, a 21.7% increase. Operating income was $2,272,544 for the three months ended September 30, 2005 compared with $2,122,210 for the comparable period in 2004. Net income was $1,651,945 for the third quarter of 2005, compared with $1,500,498 for the comparable period in 2004. Fully diluted earnings per share were $0.04 for third quarter 2005, the same as third quarter 2004. For the nine month period ended September 30, 2005, net sales increased to $63,997,598, compared to $48,359,413, for the comparable period in 2004. Net income for the nine months ended September 30, 2005 increased to $3,236,360 or $0.08 per fully diluted share, compared to $2,067,863 or $0.05 per fully diluted share for the first nine months of 2004. "Our AERT associates continue to improve efficiencies and grow the Company through innovation, hard work, customer service, and dedication," stated AERT Chairman Joe G. Brooks. "This has been a very difficult operating environment, however, as continued raw material price increases associated with volatile petrochemical markets have pressured our margins," stated Brooks. "The AERT Team is focused on continual improvements as several innovative projects, designed to better address the needs of our customers, are underway in both our plastic recycling and composite manufacturing operations," stated Brooks. Please join our conference call at 4:00 p.m. ET on Tuesday, November 15, 2005. This call will be a live webcast and available to all investors at the AERT Company web site at www.aertinc.com. About AERT: AERT converts reclaimed plastic and wood fiber waste into Weyerhaeuser ChoiceDek(R) outdoor decking systems, MoistureShield(R) door and window components, MoistureShield(R) CornerLoc(TM) exterior trim and fascia components and MoistureShield(R) outdoor decking. AERT operates manufacturing facilities in Springdale, Lowell, and Tontitown, Arkansas; Junction, Texas; and Alexandria, Louisiana. The Company's products are sold across North America. ChoiceDek Premium decking is marketed exclusively through Lowe's Home Improvement Warehouses throughout the United States. For more information, visit www.aertinc.com. The statements in regards to our anticipated financial condition and our business strategy constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause our actual operating results to differ materially. Such risks and uncertainties include but are not limited to the extent of market acceptance of our products, the sensitivity of our business to general economic conditions, and the highly competitive markets in which we operate. Additional information concerning these risks and uncertainties are contained in our filing with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2004, filed April 14, 2005.