Re Agreement

Stanelco PLC
30 August 2005


30 August 2005



                   Stanelco PLC ('Stanelco' or 'the Company')

                     Supply Agreement with NatureWorks LLC



Stanelco, the radio frequency (RF) applications Group, is pleased to announce
that it has entered into a supply agreement with NatureWorks LLC, a wholly owned
subsidiary of Cargill Inc. The agreement covers the supply of NatureWorks PLA,
(Polylactide, a starch derivative), which is the largest component of Stanelco's
recently announced Starpol 2000TM range of biodegradable, compostable plastic
materials.


This relationship will materially assist commercialisation of Starpol 2000TM
into Stanelco's target application segments and it is planned that a minimum of
15,000 tonnes of Starpol 2000TM will be produced and sold within the next 12
months.


Starpol 2000TM is available in a range of blends that can be formed into sheet
material for products such as short shelf-life food trays, modified atmosphere
packaging (MAP) trays and blown films for a diverse range of products including
carrier bags, compost bags, waste bags and agricultural films


Howard White, president of Stanelco Inc and Stanelco PLC group managing director
said:


'This is a landmark agreement that further demonstrates the materials created by
Biotec are both ground breaking and commercial.. We have been actively carrying
out pre-production runs of the material with a number of major corporations in
both the Europe and North America. Starpol 2000TM has demonstrated a
functionality far beyond any other current biodegradable alternative and at an
overall cost that is competitive with the existing plastics used in our target
market, namely food packaging. We are also in trials with our partners for
several variations of the material to be used for a number of applications such
as shopping bags, waste bags and a variety of general packaging usages.



Just as importantly, the material is also easily sealable with our GREENSEALTM
technology project which continues, to progress well and which will enable us to
offer a complete biodegradable, environmentally responsible packaging solution
at a competitive cost'



Snehal Desai, NatureWorks LLC Commercial Vice President said:



'We are delighted with the diversity, functionality and competitiveness of the
Starpol 2000TM range of products and believe the marketplace will welcome this
broad extension of offerings of NatureWorks PLA based materials.'



                                    - ends -





For further information please contact:
Ian Balchin, Chief Executive
Stanelco PLC
Tel: [phone]



Jonathon Brill/Billy Clegg
Financial Dynamics
Tel: [phone]





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.


The acquisition of Biotec Holdings GmbH and its subsidiaries remains subject to
shareholder approval at an EGM on 30th August 2005.



About NatureWorks LLC



Based in Minnetonka, Minn., USA, NatureWorks LLC is the first company to offer a
family of commercially available polymers derived 100 percent from annually
renewable resources with cost and performance that compete with petroleum-based
packaging materials and fibers. The company applies its unique technology to the
processing of natural plant sugars to create a proprietary polylactide polymer,
which is marketed under the NatureWorks(R) PLA and IngeoTM fiber brand names.


NatureWorks is a registered trademark of NatureWorks LLC.



                      This information is provided by RNS
            The company news service from the London Stock Exchange