Licence with 2K Manufacturing Limited

ENVIRONMENTAL RECYCLING TECHNOLOGIES PLC

(AIM: ENRT)

Licence with 2K Manufacturing Limited

Environmental Recycling Technologies plc ("ERT" or "the Company") (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, is pleased to announce that it has granted an exclusive licence to 2K Manufacturing Limited ("2K")

The licence allows for the manufacture and sale of flat board products within the United Kingdom, Channel Islands, Isle of Man and Republic of Ireland.

Under the terms of the new licence, which replaces the existing licence granted to 2K in December 2009, ERT will receive £1,708,333 over a period of 5 years which represents the current arrears owing to ERT. In addition, 2K will pay ERT an annual royalty based on sales volume.

As we stated in our Interims, 2K is currently raising some £10M to increase the number of its moulding machines to 40, an effective quadrupling of its production capacity. This should directly benefit ERT in respect of royalties receipts.

Roger Baynham Managing Director said:

"This is a landmark agreement which provides the framework for future cooperation between ERT and 2K enabling 2K to focus on the significant UK market whilst providing it with rights to license the PIM technology for flat sheet production to the rest of the world as evidenced by the recent agreement with NBF Plastics."

Omer Kutluoglu, CEO of 2K, said:

"We are delighted to have completed this revised agreement with ERT. Domestic demand and market awareness for EcoSheet is growing well, and this agreement better reflects our company's UK focused commercial strategy. We look forward to a fruitful and profitable relationship with ERT."

Enquiries:

Kreab Gavin Anderson T: 0207 074 1800

Robert Speed

Notes:

Environmental Recycling Technologies plc (ERT) is a leading developer of innovative technologies specifically focusing on plastic waste recycling. The company holds the worldwide intellectual property rights to the Powder Impression Moulding (PIM) Process.

The ERT PIM process allows businesses to improve their environmental footprint by adding new value to mixed plastic waste streams by conversion into viable lucrative products, which in turn can be recycled at the end of their life.

For more information about Environmental Recycling Technologies plc please visit www.ertplc.com