Advanced Environmental Recycling Technologies, Inc. (AERT.OB) Announces Second Quarter Results

As strict cost control continued, the Company’s second quarter gross margin improved 2.4 percentage points for 2010 over the prior year. Mainly due to increased promotional expenses, selling and administrative costs for the quarter increased by $0.5 million or 1.3 percentage points of sales.

Advanced Environmental Recycling Technologies, Inc. recorded operating income of $2.5 million. This represents a $0.3 million improvement over the quarter ended June 30, 2009. A $0.3 million reversal of a late registration fee was recorded last year. This increased net income to $1.3 million, the same as the net income for the quarter ended June 30, 2010.

Contributing to the Company’s sales growth was increased MoistureShield distribution and acceptance of new products. Advanced Environmental Recycling Technologies, Inc.’s second quarter conference call is scheduled for Tuesday, August 3, 2010, at 4:00 pm EDT/3:00 pm CDT.

Mr. Joe Brooks, CEO of Advanced Environmental Recycling Technologies, Inc. (AERT), said, “A key goal for 2009 was to reduce AERT’s overall cost structure and operating costs while maintaining our ability to react to market opportunities. We continue to work on this in 2010 and while our new recycling facility at Watts, Oklahoma is up and running we are implementing Phase II to effectively double it’s capacity with the assistance of a 15 year, 3% interest loan for over $3 million sponsored by the State of Oklahoma under the ARRA State Energy Program.”

Headquartered in Springdale, Arkansas, Advanced Environmental Recycling Technologies, Inc. has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. The Company converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. They are the exclusive manufacturer of ChoiceDek® decking, and their MoistureShield® decking program is expanding and products are now available throughout the U.S. The Company operates manufacturing facilities in Springdale and Lowell, Arkansas. In addition, they recently started operations at their Green Age recycling facility in Watts, Oklahoma.

For more information visit: www.aertinc.com