New Process developed

Stanelco PLC
09 July 2003



                                  Stanelco plc

                             Announces new process


Stanelco the RF (radio frequency) applications group is pleased to announce that
it has invented a new process for the manufacture of biodegradable and
compostible starch containers, initially, for the food industry, but with
potential uses elsewhere. Stanelco has demonstrated that it can rapidly form
starch foams in moulds at more than ten times faster than conventional heating
technology.

With patents pending, on this innovative use of RF technology Stanelco is
currently in discussion with several large packaging manufacturers with a view
to entering into a development programme and licensing to commercialise this
technology. The Company has been working closely with starch suppliers and with
Sainsbury's who have been supportive in progressing this project and wish to
become the first adopter of this technology.

Chief executive, Ian Balchin said, 'The worldwide market for foamed containers,
such as food trays and fast food boxes is enormous running into billions of
units annually. Our invention may enable the economic manufacture of these
containers from starch that comes from replenishable sources such as potatoes or
corn, that when finished with will be composted or biodegraded. We do not know
at present what the commercial potential of this technology is, that will depend
upon the response and endeavours of the packaging industry.'


Contact Details

Ian Balchin (Chief Executive)
Tel [phone]
Stanelco Plc
Systems House
Brunel Way
Segensworth East
Hampshire
PO15 5SD




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