UK joint venture licensee for PIM established

Environmental Recycling Technologies plc

UK joint venture licensee for PIM established

Environmental Recycling Technologies plc (AIM: ENRT), the patent rights holder of the Powder Impression Moulding ("PIM") process, is pleased to announce that it has signed heads of terms with Metallis Recycling Limited ("MRL") an international metals recycler, to incorporate a joint venture company to which it intends to grant an exclusive licence for the manufacture and sale of PIM flat sheet for the UK market. ERT's PIM process converts mixed waste plastics into commercially viable products.

The joint venture will initially be owned 50% by MRL and 50% by ERT. ERT will grant the joint venture an exclusive UK licence to manufacture and sell PIM flat sheet in exchange for a knowledge transfer and licence fee of £1million. MRL will grant the joint venture an exclusive UK licence for the use of its proprietary technology in the field of plastics processing, for a knowledge transfer and licence fee of £1million. These licence fees will be paid in instalments as the joint venture company begins operation. MRL will fund the joint venture by way of a loan of up to £1million whilst seeking additional investors to fund the expansion of the facility.

ERT will also receive royalty payments on each PIM product manufactured and sold by the joint venture company.

Commenting on the announcements, Lee Clayton, Managing Director of ERT, said: "We are delighted to have established a joint venture with Metallis Recycling Limited to reintroduce flat sheet PIM board to the UK market. We have been looking for a partner who could take on the manufacture and supply of this sought after product and have actively decided upon a closer participation with our new flagship UK manufacturer so that we can contribute more actively to the business. We have spent the last year building a relationship with Mettalis Recycling and have carefully constructed a business plan that benefits our shareholders and our new partner. This announcement is in line with our business plan, which lays out ERT's focus to continue to form strong strategic cooperation with like-minded companies"

Commenting on the announcements, Tom Bird, Managing Director of MRL, said: "We are very excited about entering into this partnership with Environmental Recycling Technologies. This is the first major step for Mettalis with regard to our forward strategy of moving to diversify our business into innovative recycling solutions. This joint venture will complement another bespoke initiative which will see Mettalis at the forefront of metals and plastics recycling"

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Notes:

Environmental Recycling Technologies plc (ERT) is a leading developer of innovative technologies specifically focusing on plastic waste recycling. The company owns 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 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