Re Agreement

Stanelco PLC
17 August 2004


17 August 2004


      Stanelco PLC signs Exclusive Tray Lidding Deal with Reiser in the US


Stanelco PLC, the RF (radio frequency) applications group, is pleased to
announce that it has entered into an exclusive, non-binding heads of terms with
Robert Reiser & Co., Inc. ('Reiser') concerning the use of RF sealing technology
in Reiser's tray lidding machines in the USA and Canada. This arrangement also
includes a non-exclusive licence covering the use of Stanelco's RF technology in
thermoforming and other packaging technologies.


Reiser has been selling and servicing high-quality food processing and packaging
equipment since 1959.


In accordance with the heads of terms Reiser are targeting a minimum of 120 new
or converted machines using Stanelco's technology during the first 12 months of
the full agreement. An annual licence fee will be agreed for each machine. In
addition, Stanelco and Reiser will be working together to develop this
technology into newly designed equipment.


Ian Balchin, Chief Executive of Stanelco, said:


'We announced our technology breakthrough on 16 July, and we are particularly
pleased that Reiser has moved so quickly and positively to take the technology
forward. Our world leading sealing system will help Reiser stay at the forefront
of the packaging industry and we are excited about the potential of this
relationship going forward. We look forward to working with Reiser on the
incorporation of our technology into their tray lidding and other equipment and
helping them deliver the benefits to their customers. We continue to have active
negotiations with a number of machine manufacturers, end users and large retail
multiples concerning other territories.'


For further information please contact:


Ian Balchin, Chief Executive

Stanelco PLC

Tel- [phone]


Jonathon Brill

Financial Dynamics

Tel- :[phone]


Reiser, Canton, MA

Tel- 781-821-1290



Notes to Editors:


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. 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.
Current developments include biodegradable air cushion packaging, sealing of
low-cost conventional plastics for food packaging, water-soluble detergent
capsules, foamed starch trays, edible sachets and waste packing.

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