Re. Agreement

Stanelco PLC
31 January 2005

31 January 2005



                                  Stanelco plc



         Stanelco signs Agreement for innovative New FrogPack Packaging





Stanelco, the RF (radio frequency) applications group, is pleased to announce a
new product line that it has developed and patented. Stanelco's FrogPack product
is a simple, new, patented packaging format. It is lightweight, highly impact
resistant, low cost and greener than the conventional packaging it is designed
to replace, such as padded envelopes and boxes with polystyrene inserts.



Aquasol Ltd, the wholly owned subsidiary of Stanelco has signed its first two
distribution agreements for the packaging product which will be manufactured
under licence.  FrogPacks will now be available from Network Packaging Ltd and
Lightning Packaging Supplies Ltd as distributors for the new product.



FrogPack 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 intended
to be used to protect items such as electronic components, car parts and compact
discs.  Further information about FrogPack can be viewed at www.frogpack.com.



Ian Balchin, Chief Executive of Stanelco commented:



'We are very excited by this new packaging product which opens up a new and
separate revenue stream. The initial reaction has been very positive with first
orders already received by distributors. Although in its early stages, following
its launch, royalty revenues from FrogPack orders are expected to flow to
Stanelco shortly.  We are continuing to identify additional distributors for the
product both in the UK and worldwide and, if successful, we would expect to see
an immediate impact on our business.'



In addition, Stanelco's traylidding trials with food manufacturers and packaging
companies continue to progress well.  In some instances trials have completed
and are awaiting results of shelf-life stability tests which are a pre-requisite
for products being placed in store. We will provide further updates in due
course.





                                    - Ends -

For further information please contact:

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

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

Gary Lewis,
Network Packaging  Ltd,
Tel: [phone]

Martin Taylor,
Lightning Packaging Supplies,
Tel: [phone]



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.





FrogPack is a trademark of Aquasol Ltd.


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