License Agreement

Stanelco PLC
07 May 2008

7 May 2008



                   Stanelco Plc ('Stanelco' or the 'Company')
                          Technology License Agreement



Stanelco plc is pleased to announce today that its bioplastics business has
licensed the design and manufacture of FROGMAT biodegradable packaging to
MonoSol LLC (MonoSol).



MonoSol is the world leader in specialty water-soluble polymer-based films.  The
license agreement grants MonoSol the exclusive rights to manufacture and market
this biodegradable packaging product in the Americas and the opportunity to
market the product globally on a non-exclusive basis.



Initial marketing trials in the USA have proven positive and the product is
expected to be launched commercially in North America under MonoSol branding in
the second half of 2008.  The first development/production machine for FROGMAT,
developed in the UK, has also been sold to MonoSol.



FROGMAT biodegradable packaging is a patented cushion packaging product
consisting of a proprietary cardboard lattice structure encased within a
water-soluble pouch. This innovative product provides high levels of protection
and can be re-used or disposed through the cardboard waste stream.



It is too early to quantify the scale of the impact this product will have in
its marketplace and further work will be undertaken it that regard to assess its
future financial impact on Stanelco. That work will help inform the Board's
expectations for the financial performance of Stanelco for the 2009 financial
year.



Paul Mines, Chief Executive of Stanelco said:



'We are pleased that MonoSol, a world leader in their sector, will be developing
sales of products using FROGMAT biodegradable packaging technology in the
Americas.  It is great news that our time and investment in developing this
interesting technology is going to be taken closer towards commercialisation,
and we look forward to working with MonoSol now and in the future.'





For further information please contact:



Financial Dynamics

Jonathon Brill/Caroline Stewart

Tel: [phone]





About Monosol



MonoSol was established in 1953 and offers a wide range of water-soluble
packaging films, mold-release films, transfer printing, embroidery support
films, water-soluble laundry bags and unique laminated and coated soluble films
custom designed for environmentally friendly packaging and disposable systems.
MonoSol maintains a global network of dedicated partners to offer sales, service
and technical support to its worldwide customer base.



For further information on MonoSol please contact:



MonoSol LLC

John Singer

Tel: [phone]




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