Acquisition

Stanelco PLC
16 March 2004



Stanelco plc: Acquisition of plant and machinery for water soluble materials


Stanelco plc (the 'Company') is pleased to announce that it has reached an
agreement with Sixela Venture Leasing Limited to acquire plant and machinery
currently leased to its wholly owned subsidiary, Adept Polymers Limited 
('Adept').



The purchase consideration is 6 million ordinary shares of 0.1p each in Stanelco
plc, which at yesterday's closing mid-market price of 5.375p is equivalent to
£322,500. The plant and equipment has been independently valued by professional
valuers at £395,000.



Commenting, Ian Balchin, Chief Executive, said, 'The transaction involves the
acquisition of equipment for processing water-soluble materials including the
making of commercial films and is central to the development of several of our
main new product areas. Currently, following this purchase, all of Adept's plant
and machinery is fully owned by the Company and will also generate savings in
lease repayments.'



Notes to Editors:



Stanelco was founded in 1953 and is a world leader in the design and manufacture
of optical fibre technology, induction heating and dielectric welding equipment.
The Company's current core business is the manufacture of optical fibre using
Radio Frequency (RF) technology. Stanelco has been applying its technology to
other markets and is currently developing detergent capsules, foamed starch
trays, edible sachets and waste packing.



Based in Irlam, Manchester, Adept Polymers have developed a unique process to
produce water-soluble, biodegradable plastics. These can be converted, using
conventional plastics equipment, into many applications such as detergent
sachets, laundry bags and measured dose packaging. The materials can be designed
to be stable up until a predetermined temperature at which they will dissolve in
water and biodegrade without any adverse impact on the environment. Adept is
working on a range of new materials for Stanelco and its customers in support of
Stanelco's wider objectives.





. ENDS-


For further information. Please contact:


Ian Balchin, Chief Executive
Stanelco plc - Tel: [phone]



Caroline Sturdy
Bell Pottinger Financial - Tel: [phone]



END



                      This information is provided by RNS
            The company news service from the London Stock Exchange