Re Agreement

Stanelco PLC
16 November 2004


16 November 2004


                                  Stanelco Plc

Stanelco to conduct full-scale commercial trials of tray-lidding technology for
                                     Asda


Stanelco PLC, the RF (radio frequency) applications group, is pleased to
announce that after the successful completion of a series of protocols regarding
the high integrity sealing of Microwaveable Food Trays (CPET) and Foil food
trays, it has agreed with Asda to commence full-scale commercial pack-house
trials with a nominated Asda supplier.

Should these trials conclude successfully, the company expects that Asda will
proceed to introduce this process into other parts of its supplier base.

The benefits of Stanelco's RF technology in the tray lidding process are
significant and multi-faceted. The RF seal eliminates leaking trays, is 20% more
efficient in terms of materials costs and is more energy efficient. The trays
are fully recyclable.

Asda is one of the UK's leading supermarket retailers and is part of the
Wal-Mart family. Wal-Mart is the largest retailer in the world.

In addition to the trial with Asda, Stanelco has agreed to the commercial trial
of its tray lidding technology with another major multi-national food packaging
company. This is in addition to the previously announced trials with Grampian
Country Foods Group and Oscar Mayer. Stanelco expects to be able to report
further details following the successful completion of these trials.

Stanelco's tray lidding technology is unaffected by the current patent dispute
with BioProgress and is now the major driver of future revenue within Stanelco's
business.

Ian Balchin, CEO, of Stanelco commented:

'We are delighted to be working with Asda. This is an opportunity to demonstrate
to an end user, the commercial and environmental benefits of our revolutionary
tray lidding and thermo forming system. This agreement also gives Stanelco
access to a major US retailer.

There is significant excitement in the market surrounding the massive savings
that are derived from the elimination of leaking packs and the lower cost of
materials.'


                                    - Ends -



For further information please contact:

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

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




Notes to Editors:

About Stanelco

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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