News

AEP INDUSTRIES INC. REPORTS FISCAL 2011 SECOND QUARTER AND YEAR-TO-DATE RESULTS

South Hackensack, NJ, June 9, 2011 – AEP Industries Inc. (Nasdaq: AEPI, the “Company”
or “AEP”) today reported financial results for its second quarter ended April 30, 2011.

Net sales for the second quarter of fiscal 2011 increased $32.9 million, or 15.2%, to $248.5
million from $215.6 million for the second quarter of 2010. Net sales for the six months ended
April 30, 2011 increased $93.5 million, or 25.1%, to $466.3 million from $372.8 million in the
same period of the prior fiscal year. The increases were the result of an increase in average
selling prices primarily attributable to the pass-through of higher resin costs to customers
during the comparable periods, combined with an increase in sales volume. The effect of
foreign exchange on net sales during the three and six months ended April 30, 2011 was
a positive impact of $1.0 million and $1.7 million, respectively, relating to the Company’s
Canadian operations.

“We are very pleased to see a continued growth in sales volume primarily as a result of
market share gained during the economic downturn,” said Brendan Barba, Chairman,
President and Chief Executive Officer of the Company. “Despite rapidly rising resin and
fuel costs, we have bolstered margins through a combination of effective cost management
and positive sales growth during the first half of the fiscal year. In addition, our successful
sale during the quarter of $200 million aggregate principal amount of Senior Notes has
strengthened our balance sheet and created additional liquidity that provides us with
significant financial flexibility. We are confident that our successes during the first six months
of fiscal 2011 position us well for the remainder of the year.”

Gross profit for the second quarter of 2011 increased $4.1 million, or 15.8%, to
from $25.8 million in the same quarter of the prior fiscal year. The Company
a $9.3 million increase in the LIFO reserve during the second quarter of fiscal
a $15.2 million increase in the LIFO reserve during the second quarter of

$29.9 million experienced 2011 versus fiscal 2010, representing a decrease of $5.9 million year-over-year. Excluding the impact of the LIFO
reserve change during the quarter, gross profit decreased $1.8 million primarily due to a lag
in selling price increases as resin prices increased an average of $0.11 per pound during the
quarter, partially offset by increased sales volumes and improved plant utilization. The effect
of foreign exchange on gross profit during the second quarter of 2011 was a positive impact of
$0.2 million relating to the Company’s Canadian operations.

Gross profit for the first six months of 2011 increased $15.5 million, or 35.4%, to $59.4 million
from $43.9 million in the same period of the prior fiscal year. The Company experienced a
$13.4 million increase in the LIFO reserve during the first six months of fiscal 2011 versus
a $17.3 million increase in the LIFO reserve during the first six months of fiscal 2010,
representing a decrease of $3.9 million year-over-year. Excluding the impact of the LIFO
reserve change during the six months, gross profit increased $11.6 million primarily due to
increased sales volumes and improved plant utilization, partially offset by a lag in selling price
increases during the period. The effect of foreign exchange on gross profit during the first
six months of 2011 was a positive impact of $0.4 million relating to the Company’s Canadian
operations.

Operating expenses for the second quarter of fiscal 2011 increased $1.0 million, or 3.9%,
to $25.5 million and for the first six months of fiscal 2011, operating expenses increased
$3.1 million, or 6.6%, to $50.0 million, as compared to the same periods of the prior fiscal
year. The increases in operating expense for both periods is primarily related to increased
volumes sold, as well as an increase in share-based compensation costs associated with
the Company’s stock options and performance units, partially offset by a decrease in
consulting costs associated with the implementation of the Company’s new operating system.
Furthermore, the positive impact on operating expenses of cost cutting initiatives implemented
in the prior fiscal year was partially mitigated by rising fuel costs.

Interest expense for the three and six months ended April 30, 2011 increased $1.8 million
and $1.9 million, respectively, as compared to the prior year comparable periods. Included
in interest expense for the three and six months ended April 30, 2011 are the write-off of
unamortized issuance fees of $1.0 million related to the Senior Notes due 2013 (“2013
Notes”), the early tender fee paid to the 2013 Note holders of $0.3 million, and $0.2 million
of fees related to the partial repurchase of the 2013 Notes. Without these items, interest
expense for the three and six months ended April 30, 2011 would have increased $0.3 million
and $0.4 million, respectively, from the same periods in the prior fiscal year. The partial
settlement of the 2013 Notes and the issuance of the 2019 Notes resulted in an increase
in interest expense for the three and six months ended April 30, 2011 of $0.3 million as
compared to the prior year periods primarily due to an increase in interest rates (7.785% to
8.25%) and aggregate principal amount (from $160.2 million to $200.0 million) of the senior
notes.

Adjusted EBITDA (defined below) was $19.9 million in the current quarter as compared to
$21.8 million for the three months ended April 30, 2010. Adjusted EBITDA for the six months
ended April 30, 2011 was $35.0 million, as compared to $26.1 million for the six months
ended April 30, 2010.

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,
other 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), other
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 (loss), 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 (loss) 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, 2011, 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 68874758. 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
manufacturing 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 resin and product pricing, volume, resin availability, our new operating
system, our liquidity and market conditions generally, 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, 2010 and other
subsequent reports, 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.