Development of capsule

Stanelco PLC
12 September 2005

12 September 2005



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

                         Hard-shell Capsule Development

Stanelco, the RF (radio frequency) applications group, is pleased to announce
the successful development of an edible, starch-based hardshell capsule for
edible applications including dietary supplements and pharmaceutical uses.

Stanelco and its partner on this project, Carclo plc, have been working together
for over 5 years with the objective of producing an economically viable
alternative to two-piece hard-shell capsules made from gelatine. Carclo
Technical Plastics has now successfully manufactured capsules using a new
polymer blend developed by Stanelco's subsidiary Adept Polymers Limited working
in conjunction with the recently acquired Biotec Holding GmbH group.

Work is ongoing to bring this new hard-shell capsule technology to market and
Stanelco and Carclo are now seeking to work with third parties to optimise
formulations, ensure regulatory approval (for human and animal consumption) and
develop the route to market, this process is expected to take a reasonable time
to achieve. A 'prospectus' is currently being prepared for the attention of
serious third parties. Both the starch-based material and the manufacturing
process offer the prospect of lower unit costs of production than for gelatine
capsules. Starch-based hard-shell capsules also offer greater resilience to
humidity and heat than gelatine and facilitate easy filling - since they are
non-static.

From knowledge of the market, the Company believes that gelatine, an animal
derived material, is becoming less favoured as a material in which to deliver
nutritional supplements and pharmaceuticals to both humans and animals. Gelatine
capsule shells are currently made using a dip moulding process followed by a
slow drying process, which injection moulded starch-based alternatives do not
require. They are ready for filling immediately following manufacture.  The only
significant alternative to gelatine currently on the market is HPMC
(hydroxypropyl methyl cellulose), a synthetic material with a significantly
higher cost base than gelatine. We believe that the world market for hard
capsules in significantly larger than that for soft capsules with many billions
of hard capsules produced annually.

Stanelco's subsidiary, Aquasol Limited, filed for patent protection in relation
to this new hardshell capsule in 1999. The patent, which is jointly owned with
Carclo plc, is proceeding to grant in various territories. The design of the
capsule also offers tamper evident and novel dissolution features as well as the
possibility of multi-compartments.

Ian Balchin, CEO of Stanelco said: 'This breakthrough has resulted from a
combination of Stanelco's expertise in formulating and blending starch based
materials together with Carclo's expertise in precision injection moulding of
soluble polymers and the design and development expertise of both organisations.
Stanelco's acquisition of Biotec is enabling the manufacture of materials with
significantly lower cost potential than conventional solutions. We look forward
to the prospect of achieving regulatory approval and to entering the wider
market for replacing both gelatine and HPMC with our new products.'

Ends

For further information please contact:

Stanelco plc

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


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

About Stanelco plc

The Stanelco Group of companies (the 'Group') has brought together expertise in
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 Food tray lidding technology, STARPOL (starch /
pva blended material), FrogPack high impact low cost packaging format,
CradleWrap range of biodegradable air cushion packaging, Soluble tape, 100%
water-soluble films and adhesives, Biodegradable Airbag (void fill) packaging,
water-soluble detergent capsules, edible sachets and waste packing.

GREENSEAL, STARPOL, Frog Pack and CradleWrap are all trademarks of the Stanelco
group.




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