Commercial Agreement

Environmental Recycling Technologies plc

Re: Commercial Agreement

Environmental Recycling Technologies plc (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, is pleased to announce a commercial agreement has been signed between ERT and Axion Recycling Limited.

The collaboration between the two companies will see Axion producing bespoke recipes of blended recycled plastic material for use by ERT's existing and future licensees. This will enable the licensees to focus on manufacturing PIM products by ensuring the consistent supply of quality-assured recycled plastic material. Axion will be the preferred source of supply of recycled polymers for ERT's licensees in the UK.

Axion, which trades as Axion Polymers, is one of the UK's largest processors of automotive plastic waste and operates one of the most advanced plastic recycling facilities in Europe. They have historically supplied several of ERT's licensees with material produced from their recycling facility in Manchester.

In addition to its recycling activities, Axion also operates a consultancy division developing and operating innovative processing solutions for recycling waste materials.

Lee Clayton, Managing Director, said:"We are delighted to have secured this strategic commercial agreement with such a respected firm as Axion. This represents an important first step in the securing of targeted collaborative partnerships, as outlined in our recent AGM statement. As our materials supply partner, Axion will develop and supply bespoke recycled plastic materials appropriate to our licensees' requirements."

Keith Freegard, Marketing Director at Axion said: "The timing of this exciting business development opportunity could not be better. As we continue to grow our capability to recycle plastic materials from end-of-life vehicles and waste electronics, we need to be creating new markets for those mixed plastic fractions which are the inevitable by-product of all high-grade polymer refinery operations. We see the PIM process as an excellent new technology to make shaped performance products for a diverse range of end-markets, including both automotive and electrical goods in which we are already active players."

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

Axion Polymers - http://www.axionpolymers.com/