AERT Update

14 December 2000

Advanced Environmental Recycling Technologies Inc announced resumption of normal operations in Texas after serious flooding. The Company has resumed composite extrusion operations with all three of the production lines. In addition, the Company also announced it would shortly commence production of a hardwood-decking product at its Texas facility. They also announced that the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. has dismissed without opinion, the appeal by Mobil of its claim for $2.7 million in attorney fees against AERT. In addition, the court also dismissed the AERT cross-appeal for a new trial concerning the invalidity of two patents at issue. Advanced Environmental Recycling Technologies Inc. manufactures a growing line of composite building materials made from recycled polyethylene plastic and waste wood fiber.

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