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                                                                    Exhibit 99.1

                                                     Contact: Brian P. Crescenzo
                                                              302-326-5648

FOR IMMEDIATE RELEASE

                      APPLIED EXTRUSION TECHNOLOGIES, INC.
                      SECURES $100 MILLION CREDIT FACILITY
                                & UPDATES OUTLOOK

NEW CASTLE, DE, October 3, 2003 - Applied Extrusion Technologies, Inc. (NASDAQ
NMS - AETC) announced today that it had entered into a $100 million, five-year
credit facility with GE Commercial Finance (GECF). The facility consists of a
$50 million revolving line of credit, replacing AET's existing revolver, and
adds a $50 million term loan. Approximately $39 million of the term loan
proceeds were utilized to repurchase all of the equipment leased pursuant to its
sale-leaseback transactions. Additionally, the Company used these proceeds to
retire $6.5 million of industrial revenue bonds due in 2004, and the remainder
was used to pay down the existing revolver. Unused availability under the new
revolving line of credit at closing of approximately $14 million is $5 million
greater than the amount available under AET's prior banking arrangements. Unused
availability is expected to increase by an additional $12 million within
approximately forty-five days, after GECF completes perfection of its security
interests in the collateral.

"The new credit facility provides additional liquidity, and a net increase in
annual cash flow of approximately $3 million per year from the reduction in
rental cost associated with the repurchased equipment," commented Amin J.
Khoury, Chairman and Chief Executive Officer. "Flexible packaging industry
demand continues to be very soft, and was further impacted by the particularly
inclement weather in many parts of the country this past summer. For this
reason, AET extended its previously announced fiscal fourth quarter shutdown,
reducing production by an additional 3 million pounds, resulting in a total
reduction of approximately 11 million pounds. In addition, at the end of August,
the Company reduced its workforce by another 40 positions, increasing the total
reductions in staffing over the past twelve months to approximately 100
positions, or 10% of its workforce. These actions, together with those announced
in our July 28, 2003 press release, will negatively impact operating earnings
for the quarter by approximately $6 million. However, the shutdown, additional
cost reduction initiatives, and the new credit facilities, combined with the
initial commercialization of the Company's new high value product offerings will
assist AET in dealing with this challenging environment."

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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.

Except for the historical information contained herein, the matters discussed in
this report are forward-looking statements that involve risks and uncertainties
which could cause actual results to differ materially from those in the
forward-looking statements, including those risks related to the ability to
implement price increases and related volume losses, the timely development and
acceptance of new products, fluctuations in raw materials and other production
costs, the ability to satisfy our debt service requirements, the loss of one or
more significant customers, the impact of competitive products and pricing, the
timely completion of capital projects, the success of the Company's efforts to
access capital markets on satisfactory terms, and to acquire, integrate, and
operate new businesses and expand into new markets, as well as other risks
detailed in Exhibit 99.1 of the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2002 and from time to time in the Company's
other reports filed with the Securities and Exchange Commission.

