Debt Repayment

30 June 2011

Environmental Recycling Technologies plc (the "Company")

Debt Repayment

The Company today announces a repayment of longer term debt via the issue of new ordinary shares of 2.5 pence each in the Company ("Ordinary Shares"). The Company has agreed to issue 23,551,425 Ordinary Shares (the "Debt Shares") at 4.35 pence (the "Issue Price") in settlement of amounts due to third party lenders (the "Debt Conversion"). The issue of the Debt Shares will further reduce the liabilities of the Company by £1,024,487.

This Debt Conversion is in line with the Board's on-going stated strategy to reduce the overall liabilities of the Company and is further to the statement in the preliminary results for the year ended 31 December that lenders of £1.02 million would, subject to agreement, accept repayment by way of a debt for equity swap.

The Issue Price is at a premium of approximately 3.6 per cent. to the closing mid-market price per Ordinary Share of 4.2 pence on 29 June 2011, being the last dealing day prior to the date of this announcement.

The Debt Shares will rank pari passu with the existing Ordinary Shares. Application will be made for the Debt Shares to be admitted to trading on the AIM market of the London Stock Exchange ("Admission"). It is expected that Admission will become effective on 6 July 2011.

Following Admission, the Company will have 561,044,179 Ordinary Shares in issue. The Debt Shares will represent approximately 4.2 per cent of the issued share capital of the Company immediately following Admission.

The Conversion shares are being allotted under the existing authorities of the Company granted to the Directors at the Annual General Meeting of the Company on 14 September 2010.

For further information:

Environmental Recycling Technologies Plc 0845 071 1394

Ken Brooks, Executive Chairman

 Roger Baynham, Managing Director

Evolution Securities 020 7071 4300

Bobbie Hilliam

Patrick Castle

Weber Shandwick Financial 020 7067 0700

Nick Oborne

Alex Brown

John Moriarty