IsraCaps new licence terms

Stanelco PLC
09 February 2006


9 February 2006
 
                              Stanelco plc ('Stanelco')

                  Stanelco and IsraCaps agree new licence terms


Stanelco plc, the radio frequency applications group is pleased to announce that
it has re-negotiated its licence terms with IsraCaps Ltd, a company registered
in Israel, so that the license becomes non-exclusive with respect to capsules
made using radio frequency techniques. In consideration Stanelco Plc will issue
1,355,932 shares representing 0.145% of the share capital of Stanelco.



                                      Ends



For further information, please contact:


Ian Balchin, Executive Vice Chairman, 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), STARPOL 2000 (highly functional, low cost biodegradable
packaging material with food contact approvals) 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, edible hard-shell capsule technology, water-soluble detergent
capsules, edible sachets and waste packing.



GREENSEAL, STARPOL, FrogPack and CradleWrap are all trademarks of the Stanelco
plc group.




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