NEW CASTLE, DE, September 5, 2007 - Applied Extrusion Technologies, Inc. announced that the Company will close its Covington, VA facility in 2008.

"We have thoroughly studied options for the Covington plant over the last year," said Thomas Mohr, President and Chief Executive Officer of Applied Extrusion Technologies, Inc. "The plant's relatively small size and large infrastructure costs have hindered its long-term competitiveness, and this ultimately led to our decision to close the plant."

"AET will conduct an orderly shutdown and transition, maintaining supply capability by utilizing existing AET manufacturing capacity to support our current and future business initiatives. A transition team will be working on a timely transfer of products to the other AET facilities," said Mr. Mohr.

The Covington plant employs 126 people and produces oriented polypropylene films used in labels and packaging applications. The plant was acquired by AET in 1994 as part of the Company's acquisition of the films business from Hercules Incorporated. Mr. Mohr said salaried employees would receive severance pay and benefits, and that the Company would bargain the effects of the closure with the union.

For the past year, AET has been improving its financial performance by optimizing its product portfolio, improving efficiency and effectiveness, redesigning its North American business platform, and strategically planning for growth options.

Applied Extrusion Technologies, Inc. is a leading North American developer and manufacturer of specialized oriented polypropylene (OPP) films used primarily in consumer products labeling and flexible packaging applications.

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