News

The AEP Industries Fiscal Year 2010 First Quarter Earnings Conference Call is scheduled for next Monday, March 15th at 10:00 am.

FOR IMMEDIATE RELEASE

Contact: Paul M. Feeney

Executive Vice President, Finance

and Chief Financial Officer

AEP Industries Inc.

(201) 807-2330

feeneyp@aepinc.com

AEP INDUSTRIES INC. REPORTS FISCAL 2009 RESULTS

South Hackensack, NJ, January 14, 2010 – AEP Industries Inc. (Nasdaq: AEPI, the “Company” or “AEP”) today reported financial results for its fiscal year ended October 31, 2009.

On October 30, 2008, the Company completed the acquisition of substantially all of the assets of the Plastic Films divisions of Atlantis Plastics, Inc. (“Atlantis”).  For the reasons set forth in the Company’s prior periodic reports filed with the Securities and Exchange Commission, no meaningful operational or financial information exists subsequent to the acquisition that segregates the impact of Atlantis from AEP as a whole.  Therefore, although the Atlantis acquisition materially impacted AEP’s net sales and results of operations for the fiscal year 2009, the following discussion does not include any separate information regarding Atlantis.

Net sales for fiscal 2009 decreased $17.4 million, or 2.3%, to $744.8 million from $762.2 million for fiscal 2008. The decrease was the result of a 14.8% reduction in average selling prices coinciding with declines in resin costs from the prior year, negatively affecting net sales by $112.5 million, partially offset by a 15.9% increase in sales volume driven primarily by the Atlantis acquisition and positively affecting net sales by $103.3 million. Despite the increase in sales volume resulting from the Atlantis acquisition, significant 2009 sales volume decreases were noted in the Company’s construction and housing related product areas and are the result of the economic recession.  Fiscal 2009 also included an $8.2 million negative impact of foreign exchange relating to the Company’s Canadian operations.

Gross profit for fiscal 2009 increased $63.6 million to $160.4 million from $96.8 million for fiscal 2008.  The improvement in gross profit is primarily due to increased volume and lower resin costs combined with synergies resulting from the Atlantis acquisition and internal efficiency initiatives designed to align production with demand at the Company’s manufacturing facilities.  The gross profit for fiscal 2009 included a decrease in the LIFO reserve of $20.1 million which positively impacted gross profit for fiscal 2009.  Fiscal 2009 also included $1.4 million of negative impact of foreign exchange relating to the Company’s Canadian operations.  Gross profit in fiscal 2008 was negatively impacted by significant increases in resin costs and a $13.5 million increase in the LIFO reserve.

Operating expenses for fiscal 2009 increased $13.2 million, or 15.2%, to $100.1 million from the prior fiscal year, but remained flat on a per-pound-sold basis.  The increase in operating expenses is primarily due to higher delivery and selling expenses resulting from greater volumes sold in the current fiscal year, higher salaries and employee-related costs as a result of an approximately 20% increase in the Company’s headcount due to the Atlantis acquisition, combined with increased general and administrative expenses due to higher share-based compensation costs recorded in fiscal 2009 associated with stock options and performance units and increased accruals related to employee cash performance incentives.  General and administrative expenses in the current fiscal year also include costs related to transitional services associated with the Atlantis acquisition.  General and administrative expenses in the prior fiscal year included approximately $1.6 million, excluding professional fees, related to the settlement of a commercial dispute and approximately $0.4 million of advisory costs incurred as a result of the Company’s exploration of strategic alternatives related to the Company’s subsidiary in the Netherlands (sale was completed in April 2008).  Fiscal 2009 includes $1.0 million favorable effect of foreign exchange, decreasing reported total operating expenses.

“During fiscal 2009, AEP successfully managed through one of the toughest economic years in our company’s history,” said Brendan Barba, Chairman and Chief Executive Officer of the Company.  “Despite a difficult operating environment, which severely affected many of our business partners and distributors, we were successful in mitigating the economic impact on many of our businesses.  In particular, the synergies we are realizing from the Atlantis acquisition, combined with the cost reduction initiatives implemented throughout the year, are positioning the Company to continue navigating through these challenging times.  Most importantly, during fiscal 2009 we were able to reduce our debt by $79.2 million, which has significantly improved our balance sheet and liquidity.”

Mr. Barba concluded, “While we are pleased with our progress, we expect that 2010 will present many of the same economic challenges as 2009, and we will continue looking for ways to increase efficiency and cut costs so that we can sustain and grow our current business and continue to be well-positioned for future success.”
On April 1, 2009, AEP repurchased and retired $14.8 million (principal amount) of the Company’s Senior Notes due March 2013 (“2013 Notes”) at a price of 62.8% of par (“2013 Notes partial extinguishment”).  The cash paid was $9.4 million, which included $0.1 million of accrued interest. In connection with the 2013 Notes partial extinguishment, the Company recognized a $5.3 million gain on extinguishment of debt, net of the write-off of deferred debt issuance costs for fiscal 2009.  For tax purposes, the gain will be recognized as taxable income in the Company’s Federal tax returns ratably over the fiscal years beginning October 31, 2014 through October 31, 2018.

Interest expense for fiscal 2009 remained flat at $15.7 million as compared to the prior fiscal year, resulting primarily from lower interest rates on Credit Facility borrowings and lower interest expense on the Company’s 2013 Notes as a result of the 2013 Notes partial extinguishment, offset by higher average borrowings on the Company’s Credit Facility during fiscal 2009 as compared to the prior fiscal year, higher amortization of fees associated with the Company’s Credit Facility, and interest expense incurred on the new capital leases originating on March 27, 2009.

Net income for fiscal 2009 was $31.5 million, or $4.61 per diluted share.  Net income for fiscal 2008 was $12.2 million, or $1.79 per diluted share. Included in net income for fiscal 2008 is an after tax-gain of $7.9 million related to the sale of the Company’s Netherlands operation.

Adjusted EBITDA was $63.3 million in fiscal 2009 as compared to $37.2 million in fiscal 2008.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as income before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry.  Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP.  Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its fiscal year 2009 conference call live over the Internet at www.aepinc.com on January 15, 2010, at 10:00 a.m. ET or by dialing 888-802-8577 for domestic participants or 404-665-9928 for international participants and referencing passcode 49205655.  An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets.  The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results.  Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions, including the continuing impacts of the U.S. recession and the global credit and financial crisis. Those and other risks are described in the Company’s annual report on Form 10-K for the year ended October 31, 2009, to be filed with the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company.  Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information becomes available in the future.

AEP INDUSTRIES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED OCTOBER 31, 2009 AND 2008

(in thousands, except per share data)

The AEP Industries Fiscal Year 2009 Earnings Conference Call is scheduled for next Friday, January 15th at 10:00 am.

Contact: Paul M. Feeney
Executive Vice President, Finance
and Chief Financial Officer
AEP Industries Inc.
(201) 807-2330
feeneyp@aepinc.com

South Hackensack, NJ, September 9, 2009 – AEP Industries Inc. (Nasdaq: AEPI, the “Company” or “AEP”) today reported financial results for its third quarter ended July 31, 2009.

On October 30, 2008, the Company completed the acquisition of substantially all of the assets of the Plastic Films division of Atlantis Plastics, Inc. (“Atlantis”). For the reasons set forth in the Company’s prior periodic reports filed with the Securities and Exchange Commission, no meaningful operational or financial information exists subsequent to the acquisition that segregates the impact of Atlantis from AEP as a whole. Therefore, although the Atlantis acquisition materially impacted AEP’s net sales and results of operations for the three and nine months ended July 31, 2009, the following discussion does not include any separate information regarding Atlantis.

Net sales for the third quarter of fiscal 2009 decreased $17.3 million, or 8.3%, to $189.7 million from $207.0 million for the third quarter of fiscal 2008. Net sales for the nine months ended July 31, 2009 decreased $9.4 million, or 1.7%, to $552.5 million from $561.9 million in the same period of the prior fiscal year. This is the result of a decrease in average selling prices coinciding with decreases in resin costs from the prior year, partially offset by an increase in sales volume driven primarily by the Atlantis acquisition. The Company continued to experience the adverse effects of the economic recession, primarily in its construction and housing related products, causing total volume to be below management’s expectations. The effect of foreign exchange on net sales during the three and nine months ended July 31, 2009 was a negative impact of $2.6 million and $8.3 million, respectively, relating to the Company’s Canadian operations.

Gross profit for the third quarter of fiscal 2009 increased $19.4 million to $37.5 million from $18.1 million in the same quarter of the prior fiscal year. The improvement in gross profit was primarily due to increased volume combined with cost saving programs including the previously announced shut down of the Fontana, California plant and internal efficiency initiatives designed to align production with demand at the Company’s manufacturing facilities. The gross profit for the third quarter of fiscal 2009 included an increase in the LIFO reserve of $5.0 million which negatively impacted gross profit for the quarter. The third quarter of fiscal 2009 also included $0.5 million of negative impact of foreign exchange relating to the Company’s Canadian operations.

Gross profit for the first nine months of fiscal 2009 increased $59.0 million to $127.2 million from $68.2 million in the same period in the prior fiscal year. The increase in gross profit was primarily due to higher sales volume, combined with a $21.3 million decrease in the LIFO reserve during the current period resulting from a decrease in resin prices and inventory quantities during the first nine months of fiscal 2009. The first nine months of fiscal 2009 also included $1.4 million of negative impact of foreign exchange relating to the Company’s Canadian operations.

Operating expenses for the third quarter of fiscal 2009 increased $4.2 million, or 19.4%, to $26.2 million, and for the nine months ended July 30, 2009, operating expenses increased $7.3 million, or 11.0%, to $73.8 million, as compared to the same periods of the prior fiscal year. The increase is primarily due to higher delivery and selling expenses resulting from greater volumes sold in the respective periods, combined with increased general and administrative expenses due to an increase in compensation costs recorded in accordance with SFAS 123R for stock options and performance units, and increased accruals related to potential current year bonuses. General and administrative expenses in the nine month period ended July 31, 2009, also included costs related to transitional services associated with the Atlantis acquisition. General and administrative expenses in the nine month period ended July 31, 2008, included approximately $1.6 million, excluding professional fees, related to a commercial dispute and approximately $0.4 million of advisory costs incurred as a result of our exploration of strategic alternatives related to our subsidiary in the Netherlands (sale was completed in April 2008). Operating expenses for the three and nine months ended July 31, 2009, included a $0.3 million and $1.1 million favorable effect of foreign exchange, respectively, decreasing total operating expenses.

“We were successful in mitigating the impact of the economic recession across most of our businesses,” said Brendan Barba, Chairman and Chief Executive Officer of the Company. “While we anticipated significant challenges well into 2010, the drop in volume in our construction and housing related products was more severe than expected. We continue to actively manage this and all areas of our business, while implementing our plan to successfully navigate the economy. We have made significant progress throughout the first nine months of 2009, including cost-reduction efforts and debt repayment, and we will continue to identify ways to strengthen the business and our balance sheet in order to best-position AEP for success today and to capitalize on the first sign of an upturn in the market.”

On April 1, 2009, AEP repurchased and retired $14.8 million (principal amount) of the Company’s Senior Notes due March 2013 (“2013 Notes”) at a price of 62.8% of par (“2013 Notes partial extinguishment”). The cash paid was $9.4 million, which included $0.1 million of accrued interest. In connection with the 2013 Notes partial extinguishment, the Company recognized a $5.3 million gain on extinguishment of debt, net of the write-off of deferred debt issuance costs for the nine months ended July 31, 2009. For tax purposes, the gain will be recognized as taxable income in the Company’s Federal tax return ratably over the fiscal years beginning October 31, 2014 through October 31, 2018.

Interest expense for the three months ended July 31, 2009 remained flat at $3.8 million as compared to the prior year period. This is largely due to lower interest rates on Credit Facility borrowings and lower interest expense on AEP’s 2013 Notes resulting from the 2013 Notes partial extinguishment. Offsetting these benefits were higher average borrowings on the Company’s Credit Facility during the three months ended July 31, 2009, as compared to the same period in the prior fiscal year, as well as interest expense incurred on new capital leases that originated on March 27, 2009. Interest expense for the nine months ended July 31, 2009 increased $0.2 million to $12.1 million from $11.9 million in the prior period, resulting primarily from higher average borrowings on the Company’s Credit Facility during the nine months ended July 31, 2009 as compared to the same period in the prior fiscal year, partially offset by the abovementioned lower interest rates on Credit Facility borrowings and lower interest expense on the Company’s 2013 Notes.

Net income for the three and nine months ended July 31, 2009 was $5.4 million or $0.79 per diluted share and $29.1 million or $4.28 per diluted share, respectively. Net income (loss) for the three and nine months ended July 31, 2008 was a $4.8 million net loss or $(0.71) per diluted share and $2.7 million of net income or $0.40 per diluted share, respectively. Included in the net income of the nine months ended July 31, 2008 is an after-tax gain of $7.9 million related to the sale of the Company’s Netherlands operation.

Adjusted EBITDA was $23.0 million in the current quarter as compared to $13.8 million for the three months ended July 31, 2008. Adjusted EBITDA for the nine months ended July 31, 2009 was $49.3 million, as compared to $34.3 million for the nine months ended July 31, 2008.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as income before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry. Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income (loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its third quarter conference call live over the Internet at www.aepinc.com on September 10, 2009, at 10:00 a.m. EDT or by dialing 888-802-8577 for domestic participants or 404-665-9928 for international participants and referencing passcode 27230157. An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets. The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions, including the ongoing U.S. recession and the global credit and financial crisis. Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2008 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company. Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

The AEP Industries Fiscal 2009 Third Quarter Earnings Conference Call will be held on Thursday, September 10th at 10:00 am

Contact: Paul Feeney
Executive Vice President
and Chief Financial Officer
AEP Industries
(201) 807-2330
feeneyp@aepinc.com

South Hackensack, NJ, June 9, 2009 – AEP Industries Inc. (Nasdaq: AEPI, the “Company” or “AEP”) today reported financial results for its second quarter ended April 30, 2009.

On October 30, 2008, the Company completed the acquisition of substantially all of the assets of the Plastic Films division of Atlantis Plastics, Inc. (“Atlantis”). AEP and Atlantis were significant competitors in the plastic films industry for many years, competing to sell similar products to a similar customer base. One of the primary factors in AEP’s determination to pursue and consummate the Atlantis acquisition was the potential realization of synergistic benefits derived from SKU consolidation, logistical savings, resin cost savings and product cost efficiencies. Immediately upon the completion of the acquisition, AEP began the process of reducing and combining SKU’s, reformulating common products to their most effective common denominator and changing the manufacturing location of certain products to maximize operating and logistical efficiencies. The Company expects to devote significant time and effort throughout fiscal 2009 to achieve these synergistic benefits. However, as a result of the foregoing, no meaningful operational or financial information exists subsequent to the acquisition that segregates the impact of Atlantis from AEP as a whole. Therefore, although the Atlantis acquisition materially impacted AEP’s net sales and results of operations for the three and six months ended April 30, 2009, the following discussion does not include any separate information regarding Atlantis.

Net sales for the second quarter of fiscal 2009 increased $1.4 million, or 0.8%, to $182.6 million from $181.2 million for the second quarter of fiscal 2008. Net sales for the six months ended April 30, 2009 increased $7.9 million, or 2.2%, to $362.8 million from $354.9 million in the same period of the prior fiscal year. This is the result of an increase in sales volume, driven by the Atlantis acquisition, partially offset by decreases in average selling prices resulting from a decrease in resin costs from the prior year periods. The Company noted that sales volume recovered in the second quarter of fiscal 2009 as customers began to restock following the first quarter of customers’ normal destocking activities, but the Company continued to experience the adverse effects of the economic recession, causing total volume to be below management’s expectations. The effect of foreign exchange on net sales during the three and six months ended April 30, 2009 was a negative impact of $3.1 million and $5.7 million, respectively, relating to the Company’s Canadian operations.

Gross profit for the second quarter of fiscal 2009 increased $19.3 million to $41.7 million from $22.4 million in the same quarter of the prior fiscal year. The improvement in gross profit is primarily due to increased volume combined with cost saving programs including the shut down of the Fontana, California plant, and internal initiatives designed to align production with demand at the Company’s manufacturing facilities. There was also an improvement in material margin resulting from the pre-buying of inventory before the January resin cost increase and negotiated settlements with suppliers of prior period pricing differences. The second quarter of fiscal 2009 also included $0.5 million of negative impact of foreign exchange relating to the Company’s Canadian operations.

Gross profit for the first six months of fiscal 2009 increased $39.6 million to $89.8 million from $50.2 million in the same period in the prior fiscal year. The increase in gross profit was primarily due to higher sales volume, combined with a $26.4 million decrease in the LIFO reserve during the current period resulting from a decrease in resin prices during the first six months of fiscal 2009. The first six months of fiscal 2009 also included $0.9 million of negative impact of foreign exchange relating to the Company’s Canadian operations.

Operating expenses for the second quarter of fiscal 2009 increased $1.0 million, or 4.2%, to $24.1 million, and for the six months ended April 30, 2009 increased $3.1 million, or 6.9%, to $47.6 million, as compared to the same periods of the prior fiscal year. The increase is primarily due to higher delivery and selling expenses resulting from greater volumes sold in the respective periods and an increase in compensation costs recorded in accordance with SFAS 123R for the Company’s stock options and performance units. Adjusting for a payment during the three and six months ended April 30, 2008 of approximately $1.6 million, excluding professional fees, related to a commercial dispute, general and administrative expenses increased from the respective comparable periods in the prior year primarily from transitional services associated with Atlantis, partially offset by a decrease in bad debt expense. Operating expenses for the three and six months ended April 30, 2009 includes a $0.4 million and $0.8 million favorable effect of foreign exchange, respectively, decreasing total operating expenses.

“Our previously announced efforts to maximize synergies of our 2008 acquisition of Atlantis Plastics, right-size our operations to mitigate effects of the economic recession and pay down debt have resulted in first and second quarter earnings surpassing management expectations.” said Brendan Barba, Chairman and Chief Executive Officer of the Company. “Though we continue to experience adverse effects of the economy, we are actively and successfully implementing our plan, which includes a combination of additional cost-reduction efforts and debt repayment to navigate these challenging times. To date we have shut down our plant in Fontana, California, notified employees of a shut down of our plant in Cartersville, Georgia, and reduced headcount. Further, we have reduced debt from approximately $250 million to approximately $190 million.”

Mr. Barba continued, “While we expect the remainder of 2009 to continue to be challenging, we expect volumes to modestly increase from existing levels, to realize additional synergies from the Atlantis acquisition, and to further reduce debt levels. We do not expect further plant closings.”

On April 1, 2009, AEP repurchased and retired $14.8 million (principal amount) of the Company’s Senior Notes due March 2013 (“2013 Notes”) at a price of 62.8% of par (“2013 Notes partial extinguishment”). The cash paid was $9.4 million, which included $0.1 million of accrued interest. In connection with the 2013 Notes partial extinguishment, the Company recognized a $5.3 million gain on extinguishment of debt, net of the write-off of deferred debt issuance costs. For tax purposes, the gain will be recognized as taxable income in the Company’s Federal tax return ratably over the fiscal years beginning October 31, 2014 through October 31, 2018.

Interest expense for the three months ended April 30, 2009 decreased $0.2 million to $3.9 million from $4.1 million in the prior year period, resulting primarily from lower interest rates on Credit Facility borrowings and lower interest expense on AEP’s 2013 Notes as a result of the 2013 Notes partial extinguishment, partially offset by higher average borrowings on the Company’s Credit Facility during the three months ended April 30, 2009 as compared to the same period in the prior fiscal year. Interest expense for the six months ended April 30, 2009 increased $0.2 million to $8.3 million from $8.1 million in the prior period, resulting primarily from higher average borrowings on the Company’s Credit Facility during the six months ended April 30, 2009 as compared to the same period in the prior fiscal year, partially offset by lower interest rates on Credit Facility borrowings and lower interest expense on the Company’s 2013 Notes as a result of the 2013 Notes partial extinguishment.

Net income for the three and six months ended April 30, 2009 was $11.6 million or $1.71 per diluted share and $23.7 million or $3.49 per diluted share, respectively. Net income for the three and six months ended April 30, 2008 was $5.5 million or $0.81 per diluted share and $7.5 million or $1.10 per diluted share, respectively. Included in the net income of the prior year periods is an after-tax gain of $7.9 million related to the sale of the Company’s Netherlands operation.

Adjusted EBITDA was $26.9 million in the current quarter as compared to $2.9 million for the three months ended April 30, 2008. Adjusted EBITDA for the six months ended April 30, 2009 was $26.3 million, as compared to $20.4 million for the six months ended April 30, 2008.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as income before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry. Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its second quarter conference call live over the Internet at www.aepinc.com on June 10, 2009, at 10:00 a.m. EDT or by dialing 888-802-8577 for domestic participants or 404-665-9928 for international participants and referencing passcode 12493336. An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets. The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions, including the ongoing U.S. recession and the global credit and financial crisis. Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2008 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company. Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

AEP INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)

Contact: Paul Feeney
Executive Vice President
and Chief Financial Officer
AEP Industries
(201) 807-2330
feeneyp@aepinc.com

South Hackensack, NJ, March 12, 2009 – AEP Industries Inc. (Nasdaq: AEPI, the “Company” or “AEP”) today reported financial results for its first quarter ended January 31, 2009.

On October 30, 2008, the Company completed the acquisition of substantially all of the assets of the Plastic Films division of Atlantis Plastics, Inc. (“Atlantis”). AEP and Atlantis were significant competitors in the plastic films industry for many years, competing to sell similar products to a similar customer base. One of the primary factors in AEP’s determination to pursue and consummate the Atlantis acquisition was the potential realization of synergistic benefits derived from SKU consolidation, logistical savings, resin cost savings and product cost efficiencies. Immediately upon the completion of the acquisition, AEP began the process of reducing and combining SKU’s, reformulating common products to their most effective common denominator and changing the manufacturing location of certain products to maximize operating and logistical efficiencies. The Company expects to devote significant time and efforts throughout fiscal 2009 to achieve these synergistic benefits. However, as a result of the foregoing, no meaningful operational or financial information exists subsequent to the acquisition that segregates the impact of Atlantis from AEP as a whole. Therefore, although the Atlantis acquisition materially impacted AEP’s net sales and results of operations for the first quarter of fiscal 2009, the foregoing does not include any separate information regarding Atlantis.

Net sales for the first quarter of fiscal 2009 increased $6.5 million, or 3.8%, to $180.2 million from $173.7 million for the first quarter of fiscal 2008. The increase was the result of a 1.0% increase in average selling prices, positively affecting net sales by $1.0 million, and a 4.7% increase in sales volume, driven by the Atlantis acquisition. Consolidated first quarter sales volume was 20 to 25% below expectations due to destocking activities by the Company’s customers and the adverse effects of the economic recession. The first quarter of 2009 also included a $2.6 million negative impact of foreign exchange relating to our Canadian operations.

Gross profit for the first quarter of fiscal 2009 increased $20.3 million to $48.1 million from $27.8 million in the prior year fiscal quarter. The increase in gross profit was primarily due to a $29.8 million decrease in the LIFO reserve during the current period resulting from a decrease in resin prices during the first quarter of fiscal 2009. The first quarter of fiscal 2009 also included $0.4 million of negative impact of foreign exchange relating to our Canadian operations.

Operating expenses for the three months ended January 31, 2009 increased $2.1 million, or 9.7%, to $23.5 million from the comparable period in the prior fiscal year. The first quarter of fiscal 2009 includes $0.4 million favorable effect of foreign exchange, decreasing reported total operating expenses. The increase in operating expenses is primarily due to higher delivery and selling expenses resulting from greater volumes sold in the current period, combined with an increase in general and administrative expenses resulting primarily from transitional service costs and increased professional services fees related to Sarbanes-Oxley compliance associated with the acquisition of Atlantis. Included in general and administrative expenses in fiscal 2008 are expenses of $0.3 million related to advisory costs incurred as a result of our exploration of strategic alternatives related to our Netherlands subsidiary.

“AEP experienced a favorable quarter as a significant portion of our first quarter profits were the result of reductions in the Company’s accumulated LIFO inventory valuation reserve which, despite an inventory quantity build of approximately 10 million pounds, decreased due to dramatic declines in resin costs,” stated Brenda Barba, Chairman, President and Chief Executive Officer of the Company. “We believe that, in the near term, there will be increases to our LIFO reserves as inventory quantities on hand continue to increase in line with business activity and as resin costs continue to rise. We are determined to continue effectively managing through these industry trends and challenges in order to position the Company for growth.”

Interest expense for the three months ended January 31, 2009 increased $0.3 million to $4.3 million from $4.0 million in the prior fiscal year period, resulting primarily from higher average borrowings on our Credit Facility, partially offset by lower interest rates on Credit Facility borrowings.

The provision for income taxes for the three months ended January 31, 2009 was $7.9 million on income from continuing operations before the provision of income taxes of $20.0 million. The provision for income taxes for the three months ended January 31, 2008 was $1.1 million on income from continuing operations before the provision of income taxes of $2.7 million.

Net income for the three months ended January 31, 2009 was $12.1 million, or $1.79 per diluted share, as compared to $2.0 million, or $0.29 per diluted share, for the three months ended January 31, 2008.

Adjusted EBITDA decreased $18.1 million to a loss of $0.6 million in the current quarter as compared to income of $17.5 million for the three months ended January 31, 2008. See “Reconciliation of Non-GAAP Measures to GAAP” for the reconciliation of adjusted EBITDA and net income.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as income before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and non-cash share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and non-cash share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry. Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its first quarter conference call live over the Internet at www.aepinc.com on March 13, 2009, at 10:00 a.m. EDT or by dialing 888-802-8577 for domestic participants or 404-665-9928 for international participants and referencing passcode 88935902. An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets. The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions, including the ongoing U.S. recession and the global credit and financial crisis. Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2008 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company. Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

AEP INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share data)

Contact: Paul Feeney
Executive Vice President
and Chief Financial Officer
AEP Industries
(201) 807-2330
feeneyp@aepinc.com

South Hackensack, NJ, January 14, 2009 – AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for its fiscal year ended October 31, 2008.

Net sales for fiscal 2008 increased $95.9 million, or 14.4%, to $762.2 million from $666.3 million for fiscal 2007. The increase, which was primarily the result of a 13.9% increase in average selling prices positively affected net sales by $92.7 million. This increase was offset by a 0.2% decrease in sales volume which negatively affected net sales by $1.2 million. Fiscal 2008 also included $4.4 million of positive impact of foreign exchange relating to the Company’s Canadian operations.

Gross profit for fiscal 2008 decreased $42.4 million to $96.8 million from $139.2 million for fiscal 2007. The decrease in gross profit was primarily due to lagging increases in selling prices during a period of unprecedented resin price increases, as well as a $13.5 million increase in the LIFO reserve during the current year ($3.4 million of this amount relates to the increase of approximately 20.9 million pounds of inventory in connection with the Atlantis acquisition) and a slight decrease in pounds sold. Fiscal 2008 also included $0.7 million of positive impact of foreign exchange relating to the Company’s Canadian operations.

Operating expenses for fiscal 2008 increased $0.6 million, or 0.8%, to $86.9 million as compared to fiscal 2007. Included in general and administrative expenses for fiscal 2008 is a payment of approximately $1.6 million, excluding professional fees, related to a commercial dispute. Other increases are primarily due to an increase in delivery expense due to higher fuel costs, an increase in bad debt expense resulting from a customer’s bankruptcy and advisory costs incurred as a result of the Company’s exploration of strategic alternatives related to the Company’s subsidiary in the Netherlands (sale was completed in April 2008). These expenses are partially mitigated by a decrease in the Company’s accrual for bonuses and a decrease in compensation costs recorded in accordance with SFAS 123R for share-based compensation. Fiscal 2008 also includes $0.5 million unfavorable effect of foreign exchange increasing total operating expenses.

“In 2008, we saw oil, natural gas and resin prices spiking to record levels and at rates that were impossible to pass through to customers, making it by far, the most challenging of my 40 plus years in the plastics business,” said Brendan Barba, Chairman and Chief Executive Officer of the Company.  “We are happy to report positive operating income of $9.6 million despite the macro-economic challenges facing our industry.  Furthermore, the well-timed sale of our Dutch subsidiary resulted in a gain on the sale and allowed us to significantly reduce debt, and we successfully completed our IRS tax audit for fiscal 2005 and 2006 during the quarter, which resulted in a $7.0 million tax benefit. In addition, the recent acquisition of the Plastic Films division of Atlantis Plastics bolsters our business portfolio and creates an even stronger suite of products and services to meet the unique needs of both companies’ customers.”

Mr. Barba continued, “We expect 2009 to be every bit as challenging as 2008, but we believe we are better positioned than many of our competitors to sustain ourselves in this current environment.  Continuing economic dislocations are affecting the ability of some of our competitors to operate their business and service their customers, and we are well-positioned in the marketplace to be the beneficiary of these opportunities.”

Interest expense for fiscal 2008 increased $0.2 million to $15.7 million from $15.5 million in fiscal 2007, resulting primarily from higher average borrowings on the Credit Facility during fiscal 2008 as compared to fiscal 2007, partially offset by lower interest rates on Credit Facility borrowings.

The benefit for income taxes for fiscal 2008 was $8.5 million on loss from continuing operations before income taxes of $5.2 million. Included in this amount is a $7.0 million benefit arising from previously unrecognized tax benefits resulting from the completion in September 2008 of an IRS examination for fiscal 2005 and 2006.

Net income for fiscal 2008 was $12.2 million, or $1.79 per diluted share. Net income for fiscal 2007 was $30.1 million, or $3.93 per diluted share.

Adjusted EBITDA decreased $40.8 million to $37.2 million for fiscal 2008 as compared to $78.0 million in fiscal 2007.   See “Reconciliation of Non-GAAP Measures to GAAP” for reconciliation of adjusted EBITDA and net income.

On April 4, 2008, the Company completed the sale of AEP Netherlands, the last remaining component of the Company’s European segment that manufactured custom films, stretch wrap and printed and converted films, to Euro-M Flexible Packaging S.A. and Ghlin S.r.L, and received in cash approximately $26.8 million (approximately $3.2 million for the shares of AEP Netherlands, net of closing and other costs totaling $1.5 million, and approximately $23.6 million for the settlement of all intercompany loans).  The buyers also assumed third party debt and capital lease obligations totaling approximately $12.0 million and approximately $5.6 million of unfunded pension obligations.  In connection with the sale, the Company recorded a $10.7 million pre-tax gain on disposition from discontinued operations.

On October 30, 2008, the Company completed the acquisition of substantially all of the assets of the stretch films, custom films and institutional products divisions of Atlantis Plastics, Inc. and certain of its subsidiaries. The purchase price was approximately $99.2 million in cash, before expenses of approximately $1.4 million. The net assets acquired included approximately $56.8 million of net working capital.  The purchase price is  subject to a post-closing net working capital true-up of no more than plus or minus $2.5 million.  In connection therewith, we entered into an amendment of the Credit Facility, increasing the maximum borrowings from $125.0 million to $150.0 million and extended the maturity from November 2010 to December 2012. The interest rate for borrowings under LIBOR increased to a range of LIBOR plus 2.25% to 2.75% from LIBOR plus 1.25% to 2.0%.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as income before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and non-cash share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and non-cash share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry.  Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP.  Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its fiscal year 2008 conference call live over the Internet at www.aepinc.com on January 15, 2009 at 10:00 a.m. EDT or by dialing 888-802-8577 for domestic participants or 404-665-9928 for international participants.  An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets.  The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results.  Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions.  Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2007 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company.  Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

AEP INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED OCTOBER 31, 2008 and 2007
(UNAUDITED)

(in thousands, except per share data)

Contact: Paul Feeney
Executive Vice President
and Chief Financial Officer
AEP Industries
(201) 807-2330
feeneyp@aepinc.com

Transaction Positions AEP as a Preferred Supplier of Flexible Packaging

The integration of the Plastic Films segment positions AEP as a preferred supplier of flexible packaging by bringing together two producers that are industry leaders across many product categories.  Atlantis’ Linear Stretch films business will become part of AEP’s Stretch film operations and Atlantis’ Custom Films division will be folded into AEP’s Proformance Films operations, which will focus on highly engineered specialty high–performance mono and coextruded products.  In addition, the Plastics Films institutional products division will be folded into AEP’s institutional products division.  The combinations of these groups will provide unmatched capabilities in the industry and exponential improvement in the individual product offerings.  Plastic films products are used in a variety of applications, including storage, transportation, food packaging, appliance, building products and other commercial and consumer applications.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results.  Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions.  Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2007 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company.  Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

Contact: Paul Feeney
Executive Vice President
and Chief Financial Officer
AEP Industries
(201) 807-2330
feeneyp@aepinc.com

South Hackensack, NJ, September 8, 2008 – AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for its fiscal third quarter ended July 31, 2008.

Net sales increased $33.2 million, or 19%, in the third quarter of fiscal 2008 to $207.0 million compared with $173.8 million in the third quarter of fiscal 2007.  For the first nine months of fiscal 2008, net sales increased $78.2 million, or 16%, to $561.9 million compared with $483.7 million in the same period last year.  The increases are primarily the result of increases in average selling prices, driven by higher resin costs in the current period in comparison to the same period of fiscal 2007, combined with increases in sales volume.  The effect of foreign exchange on net sales during the three and nine months ended July 31, 2008 was a positive $1.3 million and $5.5 million, respectively, reflecting the impact of the strengthened Canadian currency.

Gross profit for the third quarter of fiscal 2008 decreased $14.3 million to $18.1 million as compared to $32.4 million in the prior year quarter.  The decrease in gross profit was largely due to a cumulative increase in LIFO reserves of $8.8 million between the periods combined with current quarter margin erosion resulting from lagging increases in selling prices. The effect of foreign exchange on gross profit for the current quarter was a positive $0.1 million.

For the first nine months of fiscal 2008, gross profit decreased $38.6 million to $68.2 million as compared to $106.8 million in the prior year nine-month period.  The decrease in gross profit was primarily due to a $17.3 million cumulative gross profit impact related to the LIFO reserve combined with lagging sales price increases partially offset by an increase of sales volume and a positive foreign exchange effect of $0.9 million relating to the Company’s Canadian operations.

Operating expenses for the three months ended July 31, 2008, decreased $1.2 million to $21.9 million, and for the nine months ended July 31, 2008, increased $1.8 million to $66.5 million, as compared to the same periods of the prior fiscal year.  The decrease for the three-month period is primarily due to a decrease in the accrual for bonuses and a decrease in compensation costs recorded in accordance with SFAS 123R for stock options and performance units, partially offset by an increase in delivery expense resulting from higher fuel costs.  The increase for the nine-month period is primarily due to a payment of approximately $1.6 million, excluding professional fees, related to a commercial dispute, an increase in delivery and selling expenses resulting from higher volumes sold, higher fuel costs, an increase in bad debt expense resulting from a customer’s bankruptcy and advisory costs incurred as a result of the exploration of strategic alternatives related to the Company’s April 2008 sale of its AEP Industries Nederland B.V. (“AEP Netherlands”) subsidiary, partially mitigated by a decrease in bonus accruals and compensation costs recorded in accordance with SFAS 123R for stock options and performance units.

“AEP continues to focus on strengthening its business during this period of difficult economic conditions marked by unprecedented price increases in resin,” said Brendan Barba, Chairman and Chief Executive Officer of the Company.  “Despite the challenges of the current market, we have made several strategic decisions during the first nine months of this fiscal year, which we believe will have a significant impact on our business operations.  Most notably were our sale of AEP Netherlands in April and our recently announced acquisition of the Plastic Films segment of Atlantis Plastics, which we believe to be a compelling strategic opportunity for AEP that is consistent with our efforts to create additional long-term value for our shareholders.”

Interest expense for the three and nine months ended July 31, 2008, decreased $0.1 million to $3.8 million and increased $0.5 million to $11.9 million, respectively, as compared to the same periods of the prior fiscal year.  The decrease for the three month period resulted primarily from lower average borrowings on the Company’s credit facility combined with lower interest rates on these borrowings. The increase for the nine-month period resulted primarily from higher average borrowings on the Company’s credit facility, partially offset by lower interest rates on these borrowings.

Net income (loss) for the three and nine months ended July 31, 2008 was a $4.8 million net loss or $(0.71) per diluted share and $2.7 million of net income or $0.40 per diluted share, respectively.  Net income for the three and nine months ended July 31, 2007 was $4.8 million or $0.63 per diluted share and $21.6 million or $2.75 per diluted share, respectively.

On April 4, 2008, the Company completed the sale of AEP Netherlands, the last remaining component of the Company’s European segment that manufactured custom films, stretch wrap and printed and converted films, to Euro-M Flexible Packaging S.A. and Ghlin S.r.L, and received in cash approximately $26.8 million (approximately $3.2 million for the shares of AEP Netherlands, net of closing and other costs totaling $1.5 million, and approximately $23.6 million for the settlement of all intercompany loans).  In connection with the sale of AEP Netherlands, the Company recorded a $10.7 million gain on disposition from discontinued operations for the nine months ended July 31, 2008, including a $1.5 million pre-tax gain on sale of shares of AEP Netherlands, $6.9 million of realized foreign currency exchange gains ($4.1 million after tax) resulting from the settlement of all intercompany loans, denominated in Euros ($5.1 million of which had been previously recognized in accumulated other comprehensive income at October 31, 2007) and the reclassification of AEP Netherlands’ accumulated foreign currency translation gains into income in the amount of $2.3 million.

Adjusted EBITDA was $13.8 million in the current quarter as compared to $19.3 million for the three months ended July 31, 2007.  Adjusted EBITDA was negatively impacted between three and four cents per pound in the current period resulting from a delay in passing increased resin costs through to our market place.  Adjusted EBITDA for the nine months ended July 31, 2008 was $34.3 million, as compared to $60.7 million for the nine months ended July 31, 2007.  See “Reconciliation of Non-GAAP Measures to GAAP” for reconciliation of adjusted EBITDA and net income (loss).

On August 9, 2008, the Company entered into an Asset Purchase Agreement (the “Atlantis Agreement”) for the purchase of substantially all of the assets of the stretch films, custom films and institutional products divisions of Atlantis Plastics, Inc. (OTC: ATPL.PK)  and certain of its subsidiaries (“Seller”) for $87.0 million in cash plus the assumption of certain liabilities (the “Atlantis Acquisition”). On August 28, 2008, the United States Bankruptcy Court for the Northern District of Georgia Court appointed the Company as the “stalking horse” bidder for the Plastic Films assets.  The “stalking horse” bid is subject to higher and better offers at a Court sponsored auction, scheduled to be held on October 2, 2008.  In addition to the Seller not receiving a higher or better offer from a qualified bidder, the transaction is subject to approval by the Court and other customary closing conditions set forth in the Atlantis Agreement.  Either party may terminate the Atlantis Agreement by November 3, 2008 if the terminating party is not the primary cause of the closing not having occurred by such date.

The Company believes that the Atlantis Plastic Films segment complements its existing business portfolio and creates an even stronger suite of products and services to meet the unique needs of both companies’ customers.

Reconciliation of Non-GAAP Measures to GAAP

The Company defines Adjusted EBITDA as net income (loss) before discontinued operations, interest expense, income taxes, depreciation and amortization, changes in LIFO reserve, non-operating income (expense) and non-cash share-based compensation expense (income). The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare its core operating results, including its return on capital and operating efficiencies, from period to period by removing the impact of its capital structure (interest expense from its outstanding debt), asset base (depreciation and amortization), tax consequences, changes in LIFO reserve (a non-cash charge/benefit to its consolidated statements of operations), non-operating items and non-cash share-based compensation. Furthermore, management uses Adjusted EBITDA for business planning purposes and to evaluate and price potential acquisitions. In addition to its use by management, the Company also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Company and other companies in the plastic films industry.  Other companies may calculate Adjusted EBITDA differently, and therefore the Company’s Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income, cash flows from operating activities and other measures determined in accordance with GAAP.  Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company’s business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of the Company’s operating performance.

The following is a reconciliation of the Company’s net income (loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA:

The Company invites all interested parties to listen to its third quarter conference call live over the Internet at www.aepinc.com on September 9, 2008 at 10:00 a.m. EDT.  An archived version of the call will be made available on the Company’s website after the call is concluded and will remain available for one year.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets.  The Company has operations in the United States and Canada.

Except for historical information contained herein, statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results.  Those risks include, but are not limited to, risks associated with pricing, volume, cash flow guidance and market conditions.  Those and other risks are described in the Company’ annual report on Form 10-K for the year ended October 31, 2007 and subsequent reports filed with or furnished to the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained from the Company.  Except as required by law, the Company assumes no obligation to update the forward-looking statements, which are made as of the date hereof, even if new information become available in the future.

AEP INDUSTRIES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND OTHER COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(in thousands, except per share data)