Re: Completion

Stanelco PLC
05 September 2005


5th September 2005


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


  Completion of Acquisition of Biotec Holdings GmbH and Joint Venture with SP
                                   Metal S.A.


Stanelco, the RF (radio frequency) applications group, is pleased to announce
that the acquisition of Biotec Holdings GmbH and subsidiaries ('Biotec') from E.
Khashoggi Industries LLC ('EKI') has now been completed.  Following the
acquisition, the Company has now completed the sale of a 50% stake in Biotec to
SP Metal S.A. ('SP Metal'), thereby creating a joint venture (the 'JV'). SP
Metal is the leading European manufacturer of household packaging products.
Details of the JV were included in the initial announcement made on 5th July
2005.


Further to the conditions of the JV set out in the initial announcement,
Stanelco and SP Metal have both agreed that in the event of: (1) one of the
parties defaulting on the payment of one or both of the deferred consideration
payments, the other party will have an option to acquire the proportion of the
other party's interest corresponding to that unpaid consideration; and (2)
certain triggering events, which include insolvency, the party subject to the
triggering event will redeem its shares, if required, for a pre-determined
consideration.


Except as disclosed above, no other significant change has been made to the
conditions of the JV, as set out in the initial announcement.


Ian Balchin, CEO of Stanelco said:


'We are delighted to formalise this joint venture with SP Metal. Our two
organisations have complementary strengths and work in complementary markets and
we believe our JV will provide greater opportunities for Biotec and a greater
return for shareholders.  Our common goal is to commercialise Biotec's wealth of
intellectual property that primarily relates to starch based biodegradable
plastics.  We will also benefit from SP Metal's considerable manufacturing
experience and scale.  We look forward to working with SP Metal to derive
additional benefits from economies of scale at Biotec and to take advantage of
high oil prices to replace petroleum based plastics with our more sustainable
products.'


John Persenda, Chairman and CEO of SP Metal said:


'Now that this joint venture has been completed, we are really thrilled to be
working closely with Biotec and Stanelco to rapidly deliver a wide range of
biodegradable plastic products to the market place. We remain firmly committed
to increasing the use of natural renewable raw materials in providing
ecologically sound product solutions.'


                                    - Ends -


For further information please contact:


Ian Balchin, Chief Executive                         John Persenda, CEO

Stanelco PLC                                         Isabelle Tharaud, Deputy CEO,

Tel: [phone]                              SP Metal S.A.

                                                     Tel: [phone]


Jonathon Brill/Billy Clegg                           Public Relations Department

Financial Dynamics                                   Marielle Cayron-His

Tel: [phone]                             Tel: [phone]


About Stanelco plc


The Stanelco Group of companies (the 'Group') has brought together expertise in
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), 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,
water-soluble detergent capsules, edible sachets and waste packing.


GREENSEAL, STARPOL, Frog Pack and CradleWrap are all trademarks of the Stanelco
group.



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