AERT Experiences 3rd Quarter Sales Growth

SPRINGDALE, Ark., Nov. 4, 2009 (GLOBE NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERT), a leading plastics recycler and manufacturer of Green building products, announced today that sales for the quarter ended September 30, 2009 improved 3% to $19.1 million compared to $18.6 million for the quarter ended September 30, 2009. Gross margin from operations for the quarter, before additional class action claims accruals, improved to 26% of net sales from 13% last year.

The company reduced its SG&A costs by $1.3 million or by 31% in the quarter. Operating income for the quarter was $2.0 million before the class action accruals, an improvement of $4.2 million from an operating loss of $2.2 million before class action accrual in the third quarter of 2008.

Net income before accruals improved to $1.0 million in the third quarter of 2009, compared to a net loss before class action accruals of $1.5 million in 2008.

The filing deadline approved by the court for class action settlement claims was September, 2009. Due to a large, unexpected influx of claims in the final weeks prior to the September deadline, the company has increased its estimate for satisfying the claims by an additional $5.1 million.

The company is currently finalizing the processing of all claim requests with incomplete requests being returned and claimants receiving an additional 90 days to complete claim forms and return them to the company as mandated by the court. It is AERT's position to be proactive and to promptly resolve customer issues. Under the court approved class action settlement the company's maximum annual cash exposure is capped at $2.0 million.

Commenting on the results, AERT CEO, Joe Brooks stated, "We are very pleased with AERT's year over year sales growth for the quarter, especially in the current economic environment. We believe AERT has increased its share in a market that overall has shrunk. The improved margin, before additional accruals, is further evidence of the operational improvements that have been implemented by our management team led by AERT President, Tim Morrison and CFO, Brian Hanna. AERT received a large, unexpected influx of claims in the final weeks prior to the September cut-off, but we will diligently address these as AERT remains focused on and committed to serving our customers," Brooks concluded.

AERT will file its 10-Q on Friday, November 13th, 2009 with a third quarter conference call scheduled for Monday, November 16th, 2009 at 4:00 EST/3:00 CDT. To join the call, please dial 1-800-289-0456. Web access to the conference call can be found at http://www.aertinc.com/investor.asp.

About Advanced Environmental Recycling Technologies, Inc.