Statement on High Court

Stanelco PLC
01 October 2004

1 October 2004


                                   Stanelco plc

            High Court rules Stanelco entitled to 2 patent families


Stanelco Fibre Optics Limited ('SFOL'), a subsidiary of Stanelco plc, and
BioProgress Technology Limited ('BioProgress') had a brief period of interaction
during 1998.  Five years after the interaction ended BioProgress sent SFOL a
letter before action claiming that it was entitled to three families of patents
owned by SFOL relating to the formation of capsules and also that SFOL had
breached confidence.  During October 2003 SFOL initiated High Court proceedings
against BioProgress and the case was heard in the High Court in July of this
year.


The outcome of the litigation has been that SFOL has succeeded in confirming
that it is solely entitled to two of the three patent families (including SFOL's
patent family for making capsules using a rotary die process which is the most
commercially significant application for capsule manufacture) and jointly
entitled to two of the claims of the other patent family.  The remaining claims
of this patent family have been found to belong to BioProgress.  The Court has
also found in BioProgress' favour in relation to part of its claim for breach of
confidence by virtue of SFOL's use of certain information as the basis for its
patent applications.


Commenting on the court's decision, Stanelco Chief Executive Ian Balchin said
'We are obviously pleased to have won outright on our entitlement to two of the
three patents families.  We disagree with the court's reasoning in relation to
the remaining issues. However, we believe that we have good prospects of
appealing the court's decision and this is the course we will be following.
Stanelco's business has continued to develop since the action was brought, with
a number of new applications for our RF technology - which do not rely upon
these patents.  These include food tray lidding, which now represents a very
significant part of Stanelco's future projected revenues.'



A full copy of the Judgment will be available in due course from the Court's
website at http://www.courtservice.gov.uk/judgments/judg_home.htm






For further information please contact:



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


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



Notes to Editors:



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.







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