EGM Statement

Stanelco PLC
30 August 2005

30 August 2005



                   Stanelco PLC ('Stanelco' or 'the Company')

                                 EGM Statement


Stanelco PLC is pleased to announce that all the resolutions at the Company's
EGM held at 10.00a.m. this morning were duly passed. The acquisition of Biotec
Holdings GmbH ('Biotec') will therefore be completed shortly.



As a result, the previously announced conditional sale of a 50% interest in
Biotec to SP Metal S.A. ('SP Metal') will also shortly become effective and the
consideration received by Stanelco will be used to fund 50% of the Biotec
acquisition. Under the joint venture more of Biotec's considerable Intellectual
Property portfolio will be commercialised. Biotec have received a conditional
commitment from SP Metal for an annual purchase of approximately 10,000 metric
tonnes of Biotec's biodegradable plastic pellet worth in excess of €20m per
year.



Stanelco and SP Metal had initially agreed to increase Biotec's production
capacity of biodegradable pellets to at least 12,000 metric tonnes within nine
months via a joint investment programme of up to €4.5m. However due to further
recent improvements in both the production procedures and the ability to process
the materials, a capacity of 24,000 tonnes for an investment of €2m is now
envisaged within the same period.



In an earlier announcement today, NatureWorks LLC, a wholly owned subsidiary of
Cargill Inc has agreed the supply of the major component of Biotec's Starpol
materials which will make Biotec's products price competitive with a number of
materials currently used in the target market segments.



Business update



GREENSEALTM



Commercial trials with ASDA Stores Limited ('ASDA') suppliers have been
successfully completed and the 12 month exclusivity period with ASDA, who have
committed to converting several hundred machines in the period, commenced on
28th July 2005. To date, two contracts orders have been received from dedicated
ASDA suppliers covering 5 machines in total.



Martin Wagner, recently recruited from Asda, as Commercial Director of Stanelco
RF Technologies Limited, is now leading the drive for roll out and further
commercialisation in the UK.



In addition the Company has reached commercial agreement with G Mondini Spa, a
world leading manufacturer of tray lidding machines, to jointly develop a
purpose built radio frequency ('RF') tray lidding machine using Stanelco's
GREENSEALTM technology. This is an important development as it should allow
Stanelco to supply its technology to food packers as part of new original
equipment manufacter ('OEM') machines as an alternative to retrofitting existing
machines in operation. This will greatly speed up the acceptance of the
GREENSEALTM technology as an industry standard within the packaging industry.


We remain confident of being able to announce a number of additional
developments in relation to the commercialisation of this technology in the
coming months.



Frogpack



The commercialisation of Frogpack, our simple, new, patented, lightweight,
highly impact resistant, low cost and greener packaging format is developing
well with orders received from existing distributors and agreements being
negotiated with further distributors in North America.



Philip Lovegrove, Chairman of Stanelco said:



'I am pleased with the continued progress at the company.  We have a strong
management team with some extremely exciting opportunities ahead of us. The
passing of all resolutions at today's EGM, allowing us to complete the Biotec
acquisition will enable further progress towards our aim of becoming one of the
world's leading exponents of viable, alternative, environmentally responsible
packaging methods.'



                                      Ends



For further information please contact:
Ian Balchin, Chief Executive
Stanelco PLC
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
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 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
plc group.






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