Patent Disposal & Update

Stanelco PLC 03 October 2005 3rd October 2005 Stanelco plc ('Stanelco' or 'the Company') Biotec seeks Patent Disposal and GREENSEAL Update Stanelco, the RF (radio frequency) applications group, has undertaken a full review of its Biotec Holdings GmbH ('Biotec') patent portfolio, following its joint acquisition with SP Metal of the Biotec business on 5th September 2005. As part of this review it has identified two specific patents that are not core to the future direction of the Biotec business under its new ownership. The two patents, one granted (application EP0861036-A1) and one pending (EP1567025-A), both apply to biodegradable starch-based cigarette filters. Although Stanelco and SP Metal believe these patents may represent an immense opportunity of considerable value to the tobacco industry, they agree that they are not part of their future business plans for Biotec. As a result Stanelco plans to divest of the patents and the directly related intellectual property (IP) that has been developed. Potential buyers of the relevant patents and related IP are now being actively sought. Stanelco will announce further details of the disposal process in due course. The adoption of Stanelco's GREENSEAL Technology under the ASDA contract continues to progress in line with expectations, with a number of machines due to enter commercial operation in the coming weeks. Major steps are also being made in both Europe and North America towards the commercialisation of a number of projects, particularly those involving Biotec's materials and Stanelco intends to update the market with these developments shortly. Ends For further information please contact: Ian Balchin, Chief Executive Stanelco PLC Tel: +44 (0)2380 867100 Jonathon Brill/Billy Clegg Financial Dynamics Tel: +44 (0)20 7831 3113 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), 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, water-soluble detergent capsules, edible sachets and waste packing. GREENSEAL, STARPOL, Frog Pack and CradleWrap are all trademarks of the Stanelco plc group. This information is provided by RNS The company news service from the London Stock Exchange
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