AERT swings to Q1 net loss of US$0.29M from earnings of US$0.76M a year earlier, sales advance 44.9% to US$21.76M on introduction of ChoiceDek Foundations, nationwide expansion of MoistureShield

SPRINGDALE, Arkansas , May 8, 2012 (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 March 31, 2012 were $21.8 million, up 44.9% from $15 million for the quarter ended March 31, 2011. The sales increase was due to the introduction of ChoiceDek® Foundations™, a new product line for Lowe's, the expansion of MoistureShield® nationwide, a warmer than normal weather pattern, and the general improvement in the market.

Cost of goods sold, as a percentage of sales, decreased by 2.8 percentage points, reflecting lower fixed costs as a percentage of sales.

SG&A first quarter costs were down $0.1 million from the first quarter of 2011 and operating income of $0.8 million was generated this year as compared to an operating loss of $0.9 million for the first quarter of 2011. A gain on recapitalization of $2.7 million boosted last year's first quarter net income to $0.8 million while the first quarter of 2012 had a net loss of $0.3 million.

AERT's President, Tim Morrison, stated, "Both our MoistureShield® and ChoiceDek® brands have experienced double digit growth versus first quarter 2011. Professional builders nationwide continue to choose the value and durability of our MoistureShield® product over competing offerings. We are excited with the consumer's response to our new ChoiceDek® Foundations™ decking sold exclusively at Lowes. The transition to the ChoiceDek® Foundations™ line, begun in the fourth quarter of last year, when all the estimated costs were expensed, is essentially complete."

Joe G. Brooks, CEO, stated, "We continue to expand capabilities at our new recycling plant in Watts, OK as a means of diversifying our business and are excited about the prospects for 2012."

AERT will host their first quarter conference call and webcast on Wednesday, May 9, 2012 beginning at 11:00 am (EDT)/10:00 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.

The AERT, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4905

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, 2011.

Industry Intelligence Editor's note: In an omitted table, the company reported a net loss applicable to common stock of US$293,000 for the quarter ended March 31, 2012, compared to net earnings of $761,000 in the first quarter of 2011; and net sales of $21.76 million in Q1, 2012, compared with net sales of $15.02 million in Q1, 2011.

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