Trading Statement

Stanelco PLC
29 May 2007

29th May 2007



                    Stanelco plc('Stanelco' or 'the Company')

                               Trading Statement

Following the appointment of Paul Mines as Chief Executive Officer of the
Company on 16 April 2007, a preliminary review of the business operations of the
Company has been conducted. The results of that review were presented to the
Board on 25 May 2007.

The principal conclusions from the review are as follows:

 1. Biotec

Biotec, which is owned 50 per cent. by Stanelco and 50 per cent. by SPhere S.A.,
sells virtually all of its biopolymer output to its shareholders. In the current
financial year to 31 December 2007, it was envisaged that each shareholder would
take approximately half of the production capacity of biopolymer and Biotec has
prepared itself for that eventuality. However, the Stanelco sales and product
pipeline is currently nascent and is expected to be developed over the course of
the next 18 months or so.

Given this, and other strategic constraints, the plans to manufacture Biotec
materials in the USA have been placed on hold.

In addition, the Board has become aware of certain patent challenges lodged
against some of Biotec's products and is currently evaluating the significance
of these challenges.

 2. Radio Frequency (RF) Applications

The Greenseal trials have now been concluded. Unfortunately, the Board's
assessment of the result of these trials is that they are unlikely to lead to
any commercial sales for this particular application. Underlying trading at the
RF division remains steady.

 3. Aquasol

An agreement has been reached to sell certain assets of Adept to MonoSol AF
Limited for approximately £494,000 and this may lead to the possible future
licensing of Aquasol's FrogMat intellectual property. Shareholders will be kept
fully informed of further developments in this regard.

Development continues to commercialise other Aquasol intellectual property.

 4. Cash flow

Our cash balance at 30 April 2007 was approximately £11 million. We are
committed to ensure that these funds are deployed successfully towards a cash
positive trading position. Accordingly, the cost base of the business is being
kept under review and further cost reductions are envisaged.

Trading expectations for this financial year will be adversely affected by the
above.

The Board remains encouraged by market trends and customer interest in the
Company's portfolio of products and intellectual property and is developing its
plans in the short term to deliver shareholder value from these assets over the
medium term.

A full trading update will be provided with the half year results.


For further information please contact:

Financial Dynamics
Jonathon Brill/Caroline Stewart
Tel: [phone]




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