2K executes sub-license agreement with Zolis AG

For Immediate Release 3 June 2011

Environmental Recycling Technologies plc

("ERT" or the "Group")

2K executes a sub-license agreement with Zolis AG for six European territories

Environmental Recycling Technologies plc (AIM: ENRT), which has developed and is exploiting the patented rights to the Powder Impression Moulding ("PIM") process capable of converting mixed waste plastics into commercially viable products, announces that existing licensee 2K Manufacturing Limited has notified ERT that it has signed a sub-license agreement with Swiss company Zolis AG.

The agreement permits Zolis to sub-license 2K's manufacturing process in Spain, France, Belgium, Portugal, Sweden and Switzerland.

In January 2010, 2K Manufacturing signed a consolidated master licence with ERT extending the rights of its existing flat sheet licence to cover all global markets. Under the terms of the licence 2K is paying ERT a total of £2 million in instalments over a three year period by way of licence fees. In addition to minimum royalty payments the licence also provides for annual royalty payments based on 2K's, and its sub-licensees', actual production which will provide ongoing revenue for ERT.

Roger Baynham Managing Director of ERT plc, commented:

"We are delighted that 2K has signed this sub-license agreement with Zolis. Since commercial production of Ecosheet began in November 2010, a significant number of potential international partners have expressed an interest and we are delighted to see that these enquiries are being converted into sublicensing agreements".