27 February 2008

Strategy Update & Director Changes

The Board of Environmental Recycling Technologies plc (AIM: ENRT) (the"Company") is pleased to update shareholders on changes to its corporate strategy and board of directors.

Strategy Update

Progress is being made with a number of PIM licensees who are now either in, or close to the commencement of production of products using the PIM process. Building on the process knowledge developed by the Company, licensees are increasingly committing their own resources for their product development. Additionally, licensees generally wish to deal directly with the manufacturers of PIM process machinery, many of which were identified by the Company.

These trends mean the Company is not required to provide project management resource to licensees. Accordingly, the Board has concluded that the Company's future strategy should be solely to license its technology for commercial applications and retain such overheads only as is necessary to promote the technology, administer the income generated from these licensees and maintain protection of its intellectual property. As such, the Company will be ceasing its development and manufacturing operations.

The Board of the Company believes that these developments demonstrate that the PIM process has now gained a wider commercial acceptance, especially in applications using recycled materials, and is confident of the Company's potential to further realise value from the PIM process.

Board Changes

Following the aforementioned reorganisation, the Board believes the business will be running at or close to break even. Furthermore, the Board expects the costs of the restructuring will be more than covered by the savings that result from it.

In line with this strategy of becoming an intellectual property holding company, Niall Mackay will stand down as Chief Executive Officer at the end of this month in order to pursue his interests in Eko-Tek Products Ltd, a company of which he is part owner, and which already has a license to manufacture a range of products using the PIM process (as previously announced in the 2007 AGM Statement). Niall will continue to be available to the Company on a consultancy basis. Furthermore, Bill Widger and Bill Lopshire have both retired as non executive directors of the Company with immediate effect.

Roger Baynham will become Managing Director and Ken Brooks Executive Chairman. In addition to which Henry Bellingham MP has agreed to join the Board of the Company as a non-executive director with immediate effect.

Ken Brooks the Executive Chairman said-"I would like to thank Niall, Bill and Bill for all they have done for the company and we all wish them well in their new endeavours. I would like to welcome Roger and Henry in their new roles and look forward working with them to unlock the inherent potential within the Company."

The following disclosure is made in accordance with the AIM Rules regarding the appointment of Henry Bellingham as a non-executive director of the Company:

Current Directorships:

Glencare Estate Company
Lansdowne Advisory Ltd
ARC Fund Management Holdings Ltd

Past Directorships:

Environmental Polymer Technologies Ltd
White Knight Investments Plc (now Pan-African Resources Plc)
Global Tourism Solutions Ltd

Longborough Capital plc

Advanced Digital Components Ltd

There are no further disclosures required to be made in respect of Mr Bellingham with regard to paragraph (g) of Schedule 2 of the AIM Rules.

For further information:

27 February 2008