Subscription

Environmental Recycling Technologies plc (the "Company")

Subscription

On the 31 January 2011 the Company announced, amongst other things, that it had entered into a subscription agreement with a new investor to raise £540,000. In the same announcement, the Company announced that the same new investor would be willing to subscribe for a further 13,500,000 ordinary shares of 2.5 each in the capital of the Company ("Ordinary Shares") at a price of 4 pence each (the "Subscription Price") at any time up to 20 April 2011. The Directors have decided to accept this offer and therefore today the Company has agreed to issue 13,500,000 new Ordinary Shares to the new investor at the Subscription Price (the "Subscription"). The Subscription will raise a further £540,000 for the Company.

The Subscription is conditional upon the admission of the new Ordinary Shares to trading on the AIM market of the London Stock Exchange ("Admission") and it is not underwritten. The proceeds from the Subscription will be used by the Company for general working capital purposes. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in the Company. Application has been made for the Admission of the new Ordinary Shares and it is expected that Admission will become effective on 31 March 2011.

Following Admission, the Company will have 531,492,754 Ordinary Shares in issue. The new Ordinary Shares will represent approximately 2.54 per cent. of the issued share capital of the Company following Admission.

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