Re Agreement

Stanelco PLC
22 September 2005

22nd September 2005

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

  Stanelco signs exclusive US manufacturing Agreement for FrogPack with Elwood
                                 Packaging Inc

Stanelco, the RF (radio frequency) applications group, is pleased to announce
that it has entered into an exclusive manufacturing agreement with Elwood
Packaging Inc. ('Elwood') covering the exclusive manufacture of Stanelco's
FrogPack packaging in the United States of America.

The duration of the exclusive period, initially 18 months, is dependent upon
Elwood achieving and maintaining certain levels of sales.

Elwood Packaging was founded in 1947 and is a leading supplier of packaging 
solutions in the US.  It produces in excess of 40 million packaging units a 
year. Amongst its clients are Motorola and Atari as well as many of the leading
direct mail consultancy and advertising agencies in the US.

Howard White, Group Managing Director and president of US operations commented,
'We are delighted to select Elwood to manufacture FrogPack packaging under
licence. Elwood have already identified mass market opportunities for FrogPack
in the US and we look forward to assisting them to realise the full market
potential of this innovative product.'

Dennis Splitgerber, sales manager, Elwood Packaging, Inc said 'Combined with
Stanelco's solid product line, we will produce the ultimate protection in
packaging products.'

                                    - Ends -


For further information please contact:

Stanelco plc
Ian Balchin, Chief Executive
Stanelco PLC
Tel: [phone].
Tel: [phone]

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

About FrogPack

The FrogPack product is a simple, new, packaging format. It is lightweight,
highly impact resistant, low cost and more environmentally sustainable than the
conventional packaging it is designed to replace, such as padded envelopes and
boxes with polystyrene or foam inserts.

FrogPack was developed by Stanelco's wholly owned subsidiary, Aquasol Limited,
it incorporates Aquasol's Shock Absorbing Arcuate Panel (SAAP) technology into
the design, providing considerable added strength into the packaging. FrogPack
also has the advantage of being tamper evident.  FrogPack is used to protect
items such as electronic components, car parts and compact discs during transit.
Aquasol has also applied this technology to packaging formats for bulkier items
and for transporting and protecting bouquets of flowers. Further information
about FrogPack can be viewed at www.frogpack.com.

About Stanelco plc

The Stanelco Group of companies (the 'Group') has brought together expertise in
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
group.

About Elwood Packaging, Inc.

Since 1947, Elwood Packaging has employed ways to create the packaging solutions
to help clients drive their business forward. From an experienced, knowledgeable
staff of sales engineers and structural/graphic designers located in Chicago, to
distributors across the country, Elwood works with individual clients to achieve
practical, affordable and unique packaging solutions. www.elwoodbox.com.




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