Funding for R&D facility

Stanelco PLC
16 December 2005

16 December 2005

                           Stanelco plc ('Stanelco')


                      Stanelco awarded funding assistance
               for new Research and Development facility in Wales


Stanelco is delighted to announce that is has been made a significant offer of
Regional Selective Assistance funding in relation to a proposed production and R
&D facility in Blaenau Gwent in Wales. The offer of funding will allow Stanelco
to create a facility investing around £3m to allow production and further
development of materials using Biotec's technologies for use in replacing
conventional plastic for packaging and other applications with biodegradable
alternatives from replenish able sources such as starch.

Stanelco are pleased to be able to work with the Welsh Assembly Government and
Blaenau Gwent County Borough Council on a project which will help bring over 60
new jobs and regeneration to the local community on a project which will help
business to be more environmentally responsible.

Andrew Davies, Minister for Economic Development and Transport said:

'I am delighted that we have been able to support Stanelco in this significant
development. The £3m investment will not only lead to the creation of over 60
high quality employment opportunities, but will further strengthen our R & D
base in this innovative and environmentally important area.'


                                      Ends



For further information, please contact:


Martin Wagner, 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 Food tray lidding technology, STARPOL (starch /
pva blended material), STARPOL 2000 (highly functional, low cost biodegradable
packaging material with food contact approvals) FrogPack high impact low cost
packaging format, CradleWrap range of biodegradable air cushion packaging,
Soluble tape, 100% water-soluble films and adhesives, Biodegradable Airbag (void
fill) packaging, edible hard-shell capsule technology, water-soluble detergent
capsules, edible sachets and waste packing.

GREENSEAL, STARPOL, FrogPack and CradleWrap are all trademarks of the Stanelco
plc group.



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