Update re: trials with ASDA

Stanelco PLC
28 July 2005

28 July 2005


                           Stanelco Plc ('Stanelco')

                            ASDA contract goes live


Stanelco, the radio frequency (RF) company, is pleased to announce the stability
results of the third and final commercial trial with a third supplier to ASDA
have been received.  The results showed that Stanelco's GREENSEAL technology
performed consistently better than the current heat sealing methodology during
the trial. This now concludes the trialling requirements under Stanelco's
contract with ASDA. The 12 month exclusivity period with ASDA has therefore now
formally commenced and the roll out of GREENSEAL technology under the terms of
the contract will follow.

The terms of the contract Stanelco PLC announced on 24 March 2005 gave ASDA an
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 in its supply base will be adapted to utilise the
technology due to the significant benefits it delivers.

Ian Balchin, chief executive of Stanelco commented:

'The momentum of GREENSEAL(TM) Technology continues apace and we are delighted
that the preliminary part of the ASDA contract has now concluded successfully.'

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

'We're looking forward to introducing this new packaging technology to the
products we sell in our stores in the coming weeks and months. It will help us
further reduce the environmental impact of the packaging we use, improve product
quality and reduce waste - a pretty powerful combination.'


                                      Ends


For further information please contact:

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

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


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, 100% 
watersoluble films and adhesives, Biodegradable Airbag (void fill) packaging, 
water-soluble detergent capsules, edible sachets and waste packing.


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