2K Manufacturing Limited

Environmental Recycling Technologies plc

Environmental Recycling Technologies plc ("ERT", "the Company") (AIM: ENRT), the patent rights holder to the Powder Impression Moulding ("PIM") process which is capable of converting mixed waste plastics into commercially viable products, has been informed that its UK licensee, 2K Manufacturing Limited ("2K"), which manufactures Ecosheet™ under licence from ERT, has gone into administration.

ERT announced in November 2012 that it had clawed back the international licence for PIM from 2K and restructured the debt owed to it by 2K. Since this time ERT has received an immaterial level of licence income from 2K. Importantly, ERT made a full provision for outstanding payment due from 2K of £1.61 million in its interim results for the period to 30 June 2013.

ERT is closely monitoring the situation and will work with the administrators to facilitate a solution that is in the best interest of its shareholders and to maintain the production of Ecosheet™.

In the year to 31 December 2012, ERT estimates that 2K sold less than 30,000 units of Ecosheet. 

A further announcement will be made as soon as practicable.

For further information:

Environmental Recycling Technologies plc

Ken Brooks (Chairman)

Roger Baynham (Deputy Chairman) 01993 779 468

W H Ireland

John Wakefield 0117 945 3470

Kreab Gavin Anderson

Robert Speed/Ross Gillam 020 7074 1800