Heads of Agreement

Stanelco PLC 17 November 2003 Reckitt Benckiser set to adopt Stanelco's technology Stanelco PLC ('Stanelco') announces that it has entered into heads of agreement with Reckitt Benckiser for the adoption of its patented radio frequency (RF) technology process for use in the manufacture of detergent capsule products. Following lengthy trials, Reckitt Benckiser plans a full-scale implementation of Stanelco's RF Technology by retrofitting on to its production plant for evaluation; work on this has already begun. The parties now have 90 days to prove the system prior to entering into full agreement. Stanelco's RF Technology is hugely more energy efficient than current manufacturing processes which require tooling to be kept hot all the time, since RF puts energy directly into the material being sealed. Stanelco's technology can also seal through liquids and dusts and so eliminate the necessity of having an air bubble in the detergent capsule which gives the potential to improve quality, manufacturing speeds and reduce material costs. Stanelco's primary financial return from the successful implementation of this work will be in the form of royalties relating to a fair and reasonable share of the savings made. Ian Balchin, Chief Executive commented: 'Today's announcement is a significant milestone for the Company which should kick-start royalty payments for Stanelco for the use of our ground breaking technology. It is the model we have been working towards for the business as we develop new working applications.' - Ends - Notes to Editors: Stanelco was founded in 1953 and is a world leader in the design and manufacture of optical fibre furnace technology, induction heating and dielectric welding equipment. The company's current core business is the supply of RF technology for rapidly forming optical fibre at rates of up to 2 kilometres per hour with high dimensional accuracy. Stanelco has been applying its technology to other markets and is currently developing detergent capsules for laundry and dishwasher applications, foamed starch trays as an environmentally friendly replacement for expanded polystyrene and polyurethane, edible sachets and waste packing. Further information about Reckitt Benckieser can be found on its website www.reckitt benckiser.com. - ENDS - For further information, please contact: Ian Balchin, Chief Executive Stanelco plc Tel: 01489 570991 Jonathon Brill/Caroline Sturdy Bell Pottinger Financial Tel: 020 7861 3232. This information is provided by RNS The company news service from the London Stock Exchange
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