Further re IsraCaps license

Stanelco PLC
24 October 2003


24 October 2003

STANELCO PLC

Stanelco announced the signing of binding Heads of Terms with IsraCaps Ltd for the licensing of Stanelco's established 
patented Radio Frequency capsule making technology in the State of Israel

In response to shareholder enquiries we wish to clarify the following
information.

IsraCaps is a newly formed start up company owned by an Israeli citizen. Mr Ben White, the adult son of Stanelco 
director Mr Howard White, is about to be appointed a director of IsraCaps Ltd. Mr Ben White is not a shareholder in 
Stanelco Plc. He is the primary beneficiary of the Age of Reason Foundation which holds 227,078,122 (32.3%) ordinary 
shares in Stanelco.

Negotiations leading to the signing of the Agreement commenced in June this year. Neither Mr Ben White nor Mr Howard 
White were involved in these negotiations and Mr Howard White abstained from the Stanelco Board's decision to enter into
this agreement.

In the light of the circumstances outlined above, the Stanelco Board consider that the agreement does not give rise to 
any considerations under the combined code of a related party transaction.


Jonathon Bill / Caroline Study
Bell-Pottinger Financial
Tel [phone]




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