Contract Win

Stanelco PLC
26 July 2005


26th July 2005

                   Stanelco plc ('Stanelco' or 'the Company')

  Biotec Joint Venture wins €20m annual order from SP Metal S.A. ('SP Metal')


Stanelco, the RF (radio frequency) applications group is pleased to announce
that it has received a conditional commitment from SP Metal its Joint Venture ('
JV') partner in Biotec for an annual purchase of approximately 10,000 metric
tonnes of Biotec's biodegradable pellet worth in excess of €20m per year.

As a result, Stanelco and SP Metal have agreed to increase Biotec's production
capacity of biodegradable pellets to 12,000 metric tonnes by an investment
programme in new processing equipment valued at €4.5m. Full production is
anticipated within six months.

The purchase of Biotec Holdings and the JV with SP Metal is subject to
shareholder approval.

Ian Balchin, CEO of Stanelco plc commented:

'We are delighted to receive this commitment from SP Metal which demonstrates
that the market for starch based polymers is set for significant growth. We look
forward to the prospect of completing the acquisition and JV agreement in the
next few weeks.'

A fuller announcement will follow when specific details of the order are
finalised.

                                      Ends


For further information please contact:

Ian Balchin, Chief Executive
Stanelco PLC
Tel: [phone]

Jonathon Brill/Billy Clegg
Financial Dynamics
Tel: [phone]


Notes to Editors:


About Stanelco plc

The Stanelco Group of companies (the Group) has brought together expertise in
radio frequency (RF) technology, RF applications and biodegradable material
sciences to create a revolutionary range of packaging technologies.

Stanelco's philosophy is that new products and processes must offer solutions
and applications which:

  • give higher added value,
  • are greener, more environmentally sustainable than those they replace
  • and have protectable intellectual property rights.

Stanelco will develop the products and processes to a demonstration stage and
then work with partners in order to reach the markets; and under these
circumstances Stanelco will usually seek to license its technology. Stanelco
invests considerable time and resources in ensuring its technologies are
protected via layers of patents wherever possible.

In this way Stanelco believes it can minimise commercial risk and preserve the
highest value for shareholders.

The products offering the prospect of near term revenue generation are being
given priority over the Group's resources.

Stanelco was founded in 1953 and is a world leader in the development of radio
frequency technologies for processing polymers for edible and packaging
applications and the design and manufacture of optical fibre technology,
induction heating and dielectric welding equipment.  Stanelco's Current
developments include GREENSEAL(TM) Food tray lidding technology, STARPOL(TM)
(starch / pva blended material), FrogPack(TM) high impact low cost packaging
format, CradleWrap(TM) range of biodegradable air cushion packaging,
Solutape(TM) 100% watersoluble films and adhesives, Biodegradable Airbag (void
fill) packaging, water-soluble detergent capsules, edible sachets and waste
packing.



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