Re Contract

Stanelco PLC
23 May 2005

23 May 2005


                                 Stanelco plc

 Stanelco signs first Commercial Agreement with ASDA Supplier for GREENSEAL(TM)


Stanelco announces that following extensive trials it has now entered into a
formal commercial agreement for its GREENSEAL(TM) technology with a dedicated 
ASDA supplier, endorsed by ASDA themselves. This first commercial agreement will
involve the conversion of a Mondini tray-lidding machine at the chosen supplier.
Stanelco cannot reveal the name of the supplier for commercially sensitive 
reasons.


The GREENSEAL(TM) technology will provide a number of benefits for both ASDA and
the consumer including increased sales, reduced waste, longer shelf life, cost 
reductions on packaging materials, energy and labour savings, as well as the 
extensive environmental benefits.


Trials continue with other selected ASDA suppliers and Stanelco will announce
further updates on these when appropriate.


Ian Balchin, CEO at Stanelco plc, said


'Today's announcement takes Stanelco to the next stage of maturity as a business
as our technology enters full scale production. We are very excited by the
success of the trials for GREENSEAL, as are both ASDA and the supplier. The 
commercialisation of the technology has been adopted at an unusually fast pace.'


Tony Ruane, Technical Manager Meal Solutions commented:


'With food safety being increasingly high on everybody's agenda, RF presents the
answers to many problems being experienced with current packaging technology.
ASDA and our selected suppliers have been very excited with the possibilities
that RF has to offer. The supplier has recognised the capabilities and benefits
of RF tray lidding for ASDA, themselves and more importantly, the customer.'


                                   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.


                      This information is provided by RNS
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