AERT Releases '07 Results… Sales $82.2M Net Loss $9.5M… Cash Position YE $13.2M… Q1 '08 Sales $29.7M +30%

Business Wire, April 3, 2008

SPRINGDALE, Ark. -- Advanced Environmental Recycling Technologies, Inc. (NASDAQ: AERT), a plastics recycler and leading manufacturer of Green building products, will be filing its annual report on Friday with the Securities and Exchange Commission on Form 10-K. Sales for the year ending December 31, 2007 were $82.2 million, down 16% from $97.8 million for the prior period ending December 31, 2006. Sales for the quarter ending December 31, 2007 were $9.7 million, down 54% from $21.3 million in the prior period ending December 31, 2006.

CASH POSITION UP AT YEAR END

The Company's cash position at year-end was $13.2M versus $2.95M at year-end 2006 due to equity and debt offerings completed in October and December 2007, respectively.

2008 Q1 SALES $29.7 MILLION 30%

Gross Sales for the quarter ending March 31, 2008 were $29.9 million (Unaudited), up 30% from $23 million reported for the previous year first quarter ended March 31, 2007.

2007 NET LOSS

Net loss for the period ending December 31, 2007 was $(9.5 million) or $(.20) per share and resulted from a combination of a loss from operations, a reclassification of deferred tax benefits, a write down of inventory related to the exit of our painted window sill business, and a one time charge for preferred stock conversion features of a recent $10 million preferred stock equity offering.

MANAGEMENT ANALYSIS & OUTLOOK

Commenting on the Company's 2007 results and 2008 prospects, AERT CEO Joe Brooks explained, "We're not happy to report a loss, but amidst the tough year in the building industry AERT held its own, and even experienced increased sales at the retail level with several customers." Citing the beginning of a turnaround he went on, "Our $29.9 million in Q1 sales shows that our recovery is already underway, thanks in part to our recently initiated Green marketing campaign." "We are extremely encouraged by this initial glimpse into 2008 and combined with increasing demand from abroad, we anticipate a much brighter outlook for growth and profitability going forward," he concluded.

CFO Departure

In a separate statement, CEO Joe Brooks announced that Robert Thayer, Chief Financial Officer, has resigned from the Company effective April 11, 2008. Eric Barnes, the current Chief Accounting Officer will assume the duties previously held by Mr. Thayer.

The financial statements shown below are qualified in their entirety by the Company's filing with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2007, including, but not limited to the auditor's report, management discussion, analysis and notes.

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Certain statements in this news release regarding projected results of operations, or, projected results of financial plans or future strategies and initiatives, including, but not limited to, projections of revenue, projections of profitability, any and all future expectation, and plans for future activities may and should be regarded as "forward-looking statements" within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause AERT, Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. AERT currently is considering, but may or may not in the future implement any or all of the items and issues listed in any planned budget or strategic initiative, due to, among other things, known and unknown risks, uncertainties and other factors.

AERT, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The above-mentioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect AERT, Inc., see AERT, Inc.'s filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for the fiscal year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.

About Advanced Environmental Recycling Technologies, Inc.

Since 1989, AERT (NASDAQ CM:AERT) has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. With its constantly evolving portfolio of patented and proprietary recycling technologies, AERT has been widely recognized as a leader in resource conservation innovation and received the EPA Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking. AERT converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. The Company is the exclusive manufacturer of Weyerhaeuser ChoiceDek[R] decking, which is available in multiple colors and is sold in all Lowe's Home Improvement stores. See www.choicedek.com for more information. AERT's MoistureShield[R] decking program is expanding and products are available in many parts of the U.S. now, with national distribution planned for 2008. See www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, with a raw materials facility in Junction, Texas and a state-of-the-art recycling facility under construction in Watts, Oklahoma. This LEED certified recycling facility is expected to be operational in the first quarter of 2009. For more information on the Company, visit www.aertinc.com.