Licence Agreement

ENVIRONMENTAL RECYCLING TECHNOLOGIES PLC

(AIM: ENRT)

New Licence Agreement

Environmental Recycling Technologies plc ("ERT" or "the Company") (AIM: ENRT), which has developed and is exploiting the patented rights to the Powder Impression Moulding ("PIM") process, capable of converting mixed waste plastics into commercial end products, is pleased to announce that it has granted a licence to Falanx Protection Limited ("Falanx").

The licence allows for the manufacture and sale of products made using the PIM process for anti-ballistic and anti-blast uses within the Middle East and North Africa ("MENA"). Under the terms of the agreement, Falanx will pay ERT a licence fee of US$100,000 in addition to annual royalties based on sales of products made using the PIM process.

Falanx is a wholly owned subsidiary of Falanx Group plc, a security and risk management consultancy working with blue chip and government clients worldwide. Falanx has a number of potential governmental and commercial contracts under discussion. Falanx Group also offers training to companies and governments in security and close protection.

Roger Baynham, Managing Director, said; "The anti-ballistic and anti-blast products made using PIM opens up an exciting market for the application of our technology. We are thrilled to be working with the team at Falanx and are confident that they can successfully commercialise our PIM technology within the MENA region".

John Blamire, Chief Executive of Falanx Group plc stated: "We are very pleased to be working with ERT. Their technology allows us to offer a product that gives improved blast resistance to buildings and the perceived threat of terrorism has resulted in an increase in enquiries for this type of product." (www.falanxprotection.com)

Enquiries:

Notes to editors:

Environmental Recycling Technologies plc (ERT) is a leading developer of innovative technologies specifically focusing on plastic waste recycling. The company holds the worldwide intellectual property rights to the Powder Impression Moulding (PIM) Process.

For more information about Environmental Recycling Technologies plc please visit www.ertplc.com

Falanx Group has an existing network of blue-chip clients worldwide. The Group presently consists of three operating companies: Stirling Assynt (Europe) Limited, Stirling Risk (Asia) Limited and Falanx Protection Limited. Stirling provides business intelligence and political and security risk consultancy, while Falanx Protection provides security consultancy, security technology and a range of protection services.