SPRINGDALE, Ark., June 19, 2008 (PRIME NEWSWIRE) -- Advanced Environmental Recycling Technologies, Inc. (Nasdaq:AERT) announced today that it has extended and expanded its relationship with The Birkhill Group, LLC, the Wall Street merchant banking firm that has provided financial and institutional relations services to the Company for the past several months. Included among the expanded services will be the development of a Web 2.0 community that will provide a forum for discussion of the Green Building Products market generally, and AERT's leadership role within it specifically.
"Although the uncertainty of the product litigation has masked the progress, Birkhill has widened the audience for our company's news and has helped Wall Street gain an understanding of what we've built," noted Joe Brooks, Chairman and CEO of AERT. "While other companies in our business are retreating or even going out of business, we continue to expand our product line, open new markets, and launch major capital improvement programs that will ensure our competitiveness and will position us for future growth," he went on.
David McCarthy, Managing Director of The Birkhill Group, elaborated, "If questions related to product litigation and the status of AERT's key relationships resolve in the Company's favor, AERT will again be valued on the basis of revenue growth and forward sales opportunities. Barring an adverse outcome to these issues, the current valuation of .4x trailing revenue borders on concessionary. We will be positioning AERT on to the radar screen of an increasing number of institutional and private investors seeking environment-friendly, growth companies, and we plan to do that by using internet community techniques that bring together investors of similar interests," he went on. "Simultaneously, we will be increasing the Company's presence at investor conferences and forums that focus on high-potential, undervalued growth companies like AERT," he concluded.
"As indication of the confidence Birkhill has in our company and its upside potential, they have asked to receive their compensation in shares of the Company's common stock," explained Mr. Brooks. Rather than being issued shares from the Company's treasury and diluting shareholders' ownership, the stock will be paid by members of the Brooks family. Speaking on their behalf, Mr. Brooks said, "We're happy to invest some of our own holdings to promote the Company, and pleased to have Birkhill's principals representing us. They have been solid supporters and shareholders for many years and know AERT well. With their success in promoting other companies similar to ours, and with their far reaching contacts and keen understanding of the new media as it applies to the Wall Street community, they are uniquely qualified to help us take our message to the next level," Mr. Brooks explained.
About AERT:
Since 1989, AERT has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. With its constantly evolving portfolio of patented and proprietary recycling technologies, AERT has been widely recognized as a leader in resource conservation innovation and received the EPA Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking. AERT converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. The Company is the exclusive manufacturer of Weyerhaeuser ChoiceDek(r) decking, which is available in multiple colors and is sold in all Lowe's Home Improvement stores. See www.choicedek.com for more information. AERT's MoistureShield(r) decking program is expanding and products are available in many parts of the U.S. now, with national distribution planned for 2008. See www.moistureshield.com for product information or to find a regional distributor or dealer. AERT operates manufacturing facilities in Springdale and Lowell, with a raw materials facility in Junction, Texas and a state of the art recycling facility under construction in Watts, Oklahoma. This LEED certified recycling facility is expected to be operational in the first quarter of 2009. For more information on the Company, visit www.aertinc.com.
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Certain statements in this document regarding projected results of operations, or, projected results of financial plans or future strategies and initiatives, including, but not limited to, projections of revenue, projections of profitability, any and all future expectation, and plans for future activities may and should be regarded as "forward-looking statements" within the meaning of the Securities Litigation Reform Act. These statements involve, among other things, known and unknown risks, uncertainties and other factors that may cause A.E.R.T., Inc.'s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. A.E.R.T. currently is considering, but may or may not in the future implement any or all of the items and issues listed in any planned budget or strategic initiative, due to, among other things, known and unknown risks, uncertainties and other factors.
A.E.R.T., Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, change in strategy, or otherwise. The above mentioned listing of risks and uncertainties is not inclusive. For a more detailed discussion of some, but not all, of the risks and uncertainties that may affect A.E.R.T., Inc., see A.E.R.T., Inc.'s filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for the fiscal year ended December 31, 2007 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2008.