Re Agreement

Stanelco PLC
19 July 2005

19th July 2005



                    Stanelco confirms Mondini as Partner in

         Development of new GREENSEAL(TM)RF sealing tray lidding machines



Stanelco plc ('Stanelco' or 'the Company'), the RF Applications Group, is
pleased to announce that it has entered into a commercial agreement with G
Mondini Spa, a world leading manufacturer of tray lidding machines, to jointly
develop a purpose built 'RF' tray lidding machine using Stanelco's GREENSEAL(TM)
technology.



The agreement is the first by Stanelco with an original equipment manufacturer
(OEM). This is an important development as it should allow Stanelco to supply
its technology to food packers as part of new OEM machines as an alternative to
retrofitting existing machines. By further improving machine reliability and
lowering costs, it will greatly speed up the acceptance of the GREENSEAL(TM)
technology as an industry standard within the packaging industry.



The new machine will initially be made available to suppliers of ASDA Stores Ltd
(ASDA) in the UK and Ireland in accordance with an Agreement between Stanelco
and ASDA.



Ian Balchin CEO Stanelco plc commented, 'We are delighted to be working with G
Mondini and expect the first purpose built new machine to be supplied to an ASDA
supplier that has recently completed successful trials of GREENSEAL(TM)
technology using retrofitted equipment. Other trials of GREENSEAL(TM)technology 
and our biocompostible food tray material provisionally named Starpol2000(TM)  
are all progressing extremely well. We are also making excellent headway with 
our patent protection program in a field where there is little pre-existing 
patented technology.'




Giovanni Mondini President of  G Mondini Spa commented, 'We are delighted to
enter into this association with Stanelco. The combined experience and expertise
of two market leaders in sealing technology will accelerate the radical
modification of tray sealing across the world.'



                                    - Ends -



For further information please contact:

Ian Balchin, Chief Executive                         Paolo Mondini
Stanelco PLC                                         G.Mondini spa
Tel: [phone]                              Tel: [phone]


Jonathon Brill/Billy Clegg                           Brian Hemsley
Financial Dynamics                                   G.Mondini UK Ltd
Tel: [phone]                             Tel: [phone]






Notes to Editors:


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(TM) Food tray lidding technology, STARPOL(TM)
(starch / pva blended material), FrogPack(TM) high impact low cost packaging
format, CradleWrap(TM) range of  biodegradable air cushion packaging,
Solutape(TM) 100% watersoluble films and adhesives, Biodegradable Airbag (void
fill) packaging, water-soluble detergent capsules, edible sachets and waste
packing.



About G.Mondini SpA



Founded in 1972, G. Mondini S.p.A. is a Company which can boast world leadership
in tray sealing technology.



The main application sector is that of food, in particular the packaging of
ready meals which has been an area of continued development since the second
half of the Seventies.



Obviously, in the long run the main goal of the leading Companies in the field
has been the search for high production and fully automated lines, due to the
ever-increasing market demand for this type of product.



G. Mondini S.p.A. has highly specialised-technical staff, selected and skilled
labour and high-quality hand-manufactured goods, counting now among its
customers blue-chip companies such as Bahlsen , Bonduelle, British Airways,
Danone, Del Monte, Ferrero, Findus, Geest, Lidl, Nestle, Perdigao, Pillsbury,
Qantas Air, Northern Foods, Bluecrest, Headland Foods, Mc Cain, Perkin's Foods
Sadia, Heinz, Lufthansa to name  just a few.



In the fresh meat market, where M.A.P. and high production speeds are required,
G. Mondini has considerable experience. Its flexible approach, together with its
technological skills and innovations, has made G. Mondini a world leader for the
supply of automatic M.A.P. packaging lines. Companies such as Cargill Corp. IBP
Inc, Tyson Foods Inc, Smithfield Foods Inc, Westfalenlandfleisch, Lidl, A.I.A.,
ABP, Kerry Foods, are all using Mondini equipment.






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