Re Contract

Stanelco PLC
24 March 2005

24 March 2005

                    Stanelco PLC ('Stanelco' or the 'Group')

                   ASDA adopt Stanelco's GREENSEAL technology

Stanelco PLC, the RF (radio frequency) applications group, is pleased to
announce that it has signed a binding contract with ASDA for a 12-month
exclusive agreement for the application of the Group's GREENSEAL tray lidding
and thermoforming RF technology in the UK and Ireland.  ASDA anticipate that
several hundred machines will be adapted to utilise the technology due to the
significant benefits it delivers.

The agreement follows successful trials at a number of different ASDA suppliers
and will mean that the suppliers involved in the programme will, where
practical, convert from traditional heat-sealing to Stanelco's revolutionary RF
technology.

The main benefits of Stanelco's GREENSEAL technology are:

- An up to 20% lower cost of packaging material;
- A higher integrity seal substantially reducing the possibility of packs
  leaking;
- A removal of laminated plastics in favour of mono plastics, which can be
  easily recycled providing significant environmental benefits and
- A saving of up to 70% on power usage in the traylidding/thermoforming
  machines.

The costs associated with conversion will be greatly outweighed by the financial
and other benefits indicated. It is expected that, according to plan, this
agreement will generate a revenue stream for Stanelco significantly in excess of
£5m in the first year alone. Even before the first machine has been converted
ASDA and Stanelco are working together to look at other areas of opportunity for
the technology.

The 12-month agreement will commence from the first Monday following two weeks
of further successful trials with three ASDA suppliers. This is expected to be
in April. These commercial trials are in addition to the completed trial
announced on 1 March 2005. The underlying access agreement to adopt the
technology will be between Stanelco and each of ASDA's packaged food suppliers
with Stanelco taking on responsibility for installation and maintenance of the
tray-lidding technology.

Ian Balchin, Chief Executive of Stanelco commented:

'We are delighted to have signed a formal agreement with ASDA. This is the final
step of the first phase in the commercialising of this technology, and a very
significant step in the transformation of Stanelco into an intellectual property
business, exploiting the Group's core technologies. This contract is excellent
news for Stanelco and its shareholders and reflects the hard work put in by all
our staff. We look forward to working with ASDA on the implementation.'

Tony Ruane, Technical Manager, Meal Solutions category at ASDA said:

'This is a first to market for ASDA - real innovation. This could well turn out
to be the biggest thing in packaging for years. The benefits for both the
environment, our customers and suppliers from this technology are far reaching.
The potential for the use of Stanelco's technology grows every time we look at
it. Every visit to both stores and suppliers identifies new areas and ways in
which the technology can be used. We are looking forward to working with
Stanelco.'

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:

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.

ASDA

ASDA was formed when two separate companies, Associated Dairies and the Asquith
brothers' supermarket chain Queen's, came together in 1965. ASDA Stores Ltd was
created, a supermarket committed to offering its customers 'permanently low
prices'.

The modern day ASDA now has 274 stores and 24 depots across Great Britain and
has been part of the Wal-Mart family since 1999.  We offer Britain's best value
weekly shop with prices that are independently shown to be lower than our main
competitors with an excellent mix of fresh food, grocery, clothing, home,
leisure and entertainment goods.


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