Pre Close Update

Stanelco PLC
14 January 2008

14 January 2008



                   Stanelco plc ('Stanelco' or 'the Company')



                                Pre Close Update



Further to the Trading Statement of 29 May 2007 and the Interim Statement of 10
September 2007, the Board announces that the Company is expected to report a
loss in line with market expectations.



Sales growth has lagged forecast but this has been offset by the continued focus
on careful cost and cash management, which has resulted in a cash position that
is ahead of previous expectations.



The Company's cash balance at the 2007 year-end close was £8.0m, which will
provide greater resource for the commercialisation of the Company's technology.



Stanelco BioPlastics



The Board has strengthened this unit with the appointment in October 2007 of
Paul Law as Managing Director.  Paul has a research and development background
in natural polymer chemistry and more recently a track record in the
commercialisation of innovative polymer products. He is already increasing the
commercial focus as we look to build revenues in this area of our business.



Whilst there continues to be considerable interest from potential customers,
some obstacles remain in commercialising bioplastics as reported previously.  To
help meet the requirements of this developing market, the Company is installing
pilot extrusion and testing facilities at its UK base in Southampton during Q1
2008.



Biotec



Growth in the Biotec subsidiary has continued but at a slower rate than
anticipated.  Satisfactory progress is being made towards assuaging the
previously reported patent challenges.



Stanelco RF Applications



The RF business continues to trade in line with expectations.  We have increased
our contact with our existing customer base and this has resulted in a growing
number of customer enquiries particularly in the fibre optic furnace areas.



A detailed business update will be provided at the Preliminary Results on the
14th March 2008.


-  Ends  -

For further information please contact:

Jonathon Brill / Caroline Stewart
Financial Dynamics
Tel: [phone]



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