New Patent Application

Stanelco PLC
16 July 2004


16 July 2004

                                  Stanelco Plc

                             New Patent Application

Stanelco Plc has filed applications for a new family of patents in respect of a
new packaging system that could revolutionise the global cooked and raw meat
packaging industry.

Stanelco's system utilises its radio frequency (RF) sealing technology in
conjunction with conventional plastics so that they require no laminating or
coating in order to be sealed. It provides a direct replacement for the
heat-sealing of laminated or coated plastics which is currently used to package
both cooked and raw products such as meats, fish and dairy products.

The application will offer major environmental and cost saving benefits for the
end user. By removing the sealing layers and specialist sealing coatings the
conversion waste can be recycled in the tray manufacturing process. In addition,
the RF process is significantly more energy efficient. The process allows the
use of recyclable materials that will provide at least a 20% saving through
allowing conversion waste to be recycled.

On our present estimates, this will translate into an average cost saving per
packaging machine in excess of £100,000 per annum. Total adoption of this
technology in the UK would result in the saving of over 10,000 tons of scrap
plastic going to landfill each year.

The cost of retro-fitting is in the order of £40,000 per machine (which is borne
by the end-user) and thereafter an annual licence fee will be charged to the end
user in the region of £35,000 per unit.  There are currently in excess of 400
machines within the UK and over 2,000 machines in Europe. Stanelco is currently
retro-fitting its RF technology to packaging systems used widely within the
packaging industry.

A number of machine manufacturers, end users and large retail multiples are
already in detailed discussions with Stanelco about using this new system.
Stanelco has been running trials with Anglo Beef Processors Ltd and a major
retailer.

This particular application adds further capability to the RF technology
applications in other areas besides capsule manufacture and water-soluble film
developments.

Ian Balchin, Chief Executive said, 'This breakthrough results from the
combination of the highly skilled people we now have working in the group
together with the company's commitment to researching and developing green
applications that are more cost-effective than conventional practice. We look
forward to being able to develop a significant new revenue stream for the Group
in the near future.'


For further information please contact:

Ian Balchin
Chief Executive
Stanelco
Tel: [phone]

Jonathon Brill
Financial Dynamics
Tel: [phone]

Neville Harris
IR focus
Tel: [phone]


Notes to Editors:

Stanelco was founded in 1953 and is a world leader in the development of radio
frequency technologies for processing polymers of edible and packaging
applications and the design and manufacture of optical fibre technology,
induction heating and dielectric welding equipment. The Company's current core
business is the manufacture of optical fibre using Radio Frequency (RF)
technology. Stanelco has been applying its technology to other markets and is
currently developing detergent capsules, foamed starch trays, edible sachets and
waste packing.


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