Commercial Milestone

For Immediate Release 29 November 2010

Environmental Recycling Technologies plc

("ERT" or the "Group")

Commercial milestone reached for Powder Impression Moulding Process

Licensee 2K Manufacturing begins production of EcoSheet.

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 2K Manufacturing, a master licensee of the PIM process, has begun commercial production of EcoSheet, an environmentally sustainable alternative to plywood made from recycling waste plastics.

2K Manufacturing is a producer of industrial products from recovered waste plastics using ERT's Powder Impression Moulding Process. This process allows for the recycling of co-mingled low grade waste plastics (that would otherwise end up in land-fill) to produce the award winning product "EcoSheet".

EcoSheet can be used as a sustainable alternative to plywood in a variety of industrial sectors for site hoardings, concrete formworks and signs. It is estimated that over 20 million sheets of standard plywood are used each year in the UK alone. The natural characteristics of polymer are utilised to manufacture hard-wearing, smooth-faced, versatile boards suitable for a variety of applications in construction and beyond. EcoSheet is engineered to perform as an alternative to imported plywood, or to virgin plastic panels, and is in turn fully recyclable at the end of its lifespan.

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 will pay ERT a total of £2 million in instalments over the next three years by way of licence fees . The licence also provides that the existing minimum royalties for Europe will continue to be supplemented by minimum royalties for the rest of the World. Annual royalty payments based on 2k's, and their sub-licensees', actual production (subject to the minimum positions) will provide ongoing revenue for ERT.

Ken Brooks, Chairman of ERT plc commented:

"We are delighted that 2K Manufacturing has commenced commercial production of EcoSheet using ERT's PIM Process. This is a major milestone which confirms the commercial viability of ERT's unique PIM Process in large scale manufacturing. We look forward to applying the process over time for use in other applications, industries and geographies."

Omar Kutluoglu, CEO of 2K Manufacturing commented:

"We are very pleased to see the start of large scale manufacturing of Ecosheet from our Luton facility. Our plans to expand capacity in the near future could enable the production of up to four million pieces of EcoSheet each year.

"The PIM technology provides a solution for the issue of five million tonnes of waste plastic produced each year, 80% of which goes to landfill. In addition, over 20 million plywood sheets are used a year in the UK which are not recyclable and have to be landfilled as waste, at a great expense to the industry."

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