Trading Statement - Amendment

A number of non material typographical changes have been made to the 'Trading Statement' announcement released on 4 March 2010 at 7.00a.m. under RNS No: 0294I

The changes are identified with an asterisk (*).

Environmental Recycling Technologies Plc

Trading Update

Environmental Recycling Technologies Plc ("ERT" or "the Company") the owner and developer of the innovative Powder Impression Moulding plastic forming process ("PIM Process") wishes to update the market with regard to its trading performance ahead of the publication of its preliminary results for the year ended 31 December 2009*.

Following the departure of the Company's previous Chief Executive Officer, the present management took control of the business in March 2008 and from then until now have sought to re-focus and restructure the business. In particular the Board since its appointment has taken action to terminate various costly research and development programmes, significantly reduce the ongoing costs of the Company and, where possible, seek to out-licence the PIM Process to accelerate its commercialisation. The Board is pleased to report that this strategy has now largely been successful*.

In January 2010, the Company announced that its licensee, 2k Manufacturing Ltd ("2k"), has signed a consolidated Master Flat Sheet licence extending the rights of their existing flat sheet licence to cover the whole of the World. This licence will lead to future revenue for the Company, as previously outlined, and highlights the commercial potential of the PIM Process. Further to the 2K licence, the Board during 2009 has entered into a number of other new licence arrangements with various companies from a wide range of sectors and geographical locations. The sectors included construction, defence and marine as well as environmentally focused organisations. As previously announced the Board will announce details of these licences and any associated developments of these licences when they have a material impact on the operational or financial performance of the Company.

The Board has been able to significantly cut the ongoing costs of the Company from those reported in the 2008 full year results. This has been assisted by the conclusion of a number of development programmes in 2009, which included the Contour Shower programme*. This coupled with the resolution of outstanding litigation and the reduction of debt via the issue of shares as announced over the past two months has significantly improved the financial position and prospects of the Company. Whilst a number of uncertainties remain in relation to the future funding of the Company, including the need to extend existing loan arrangements, the Board hopes to be able to repay further debt and also announce an extension to its existing loan arrangements in the near future. As at 31 December 2009*, the Company had cash of approximately £204,000.

Overall, while significant work is still required, the Board believes the benefits of the new strategy and the restructuring undertaken since March 2008 are starting to be felt and therefore the prospects of the Company are positive.

4 March 2010

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