Wood composite decking producer AERT of Springdale, Arkansas, reports Q2 operating income of US$0.2M, down US$2.3M from a year earlier; sales drop 24% to US$17.6M as BlueLinx reduces ChoiceDek inventory

SPRINGDALE, Arkansas , August 16, 2011 (press release) – Advanced Environmental Recycling Technologies, Inc. (OTCBB:AERT), a leading plastic recycler and manufacturer of green building products, announced today that sales for the quarter ended June 30, 2011 were $17.6 million, down 24% from $23.2 million, for the second quarter of 2010. Reduced sales to BlueLinx who lowered their inventory on an existing ChoiceDek line, were only partially offset by increased MoistureShield sales.

Second quarter gross margin declined 8.1 percentage points from 2010 reflecting higher raw material costs and reduced manufacturing overhead absorption.

Selling and administrative costs for the quarter were reduced by $0.6 million, as headcount, health insurance, professional fees and administrative costs were reduced; although advertising and promotional costs were increased.

The company recorded operating income of $0.2 million, a $2.3 million reduction from the quarter ended June 30, 2010.

Commenting on the results, Joe G. Brooks, CEO of AERT, noted, "We continue to work on our key goal of streamlining AERT's overall cost structure and operating costs while maintaining our ability to react to increase market opportunities. While our sales are off due to customer inventory reduction, consumer demand is on par with last year. Phase II of our Watts, OK recycling facility is nearing completion and we soon expect to be selling recycled plastic to other manufactures. Our associates also have several exciting next generation products preparing for launch into next year."

AERT will host their second quarter conference call and webcast on Tuesday, August 16, 2011 beginning at 11:30 am (EDT)/10:30 am (CDT) to discuss the results. Listeners may participate in a question and answer session toward the end of the webcast by calling 877-561-2747. To listen via internet, visit http://aert.com/ir/webcasts.aspx .

About Advanced Environmental Recycling Technologies, Inc.

Since 1989, AERT (OTCBB: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. The company recently received an ESGR Patriot Award for its support of our Guard and Reserve Units in the U. S. Armed Forces. 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 ChoiceDek® decking, which is available in multiple colors and is sold in Lowe's Home Improvement stores nationwide. See http://www.choicedek.com for more information. AERT's MoistureShield® decking program is expanding and products are now available throughout the U.S. See http://www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, Arkansas and recently commenced operations at its Green Age recycling facility in Watts, Oklahoma. Investors can access real-time stock quotes and information at http://www.otcmarkets.com. For more information on the Company, visit http://www.aertinc.com. Sign up to receive investor information, including press releases, via email by visiting http://aert.com/ir/PressReleaseOptIn.aspx.

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