Agreement and Placing

Stanelco PLC
09 February 2005


                                  Stanelco plc

                                   Agreement
                                      And
                         Placing of New Ordinary Shares

Stanelco is pleased to announce that it has granted ASDA a 60 day option period
during which the two organisations will endeavour to reach agreement concerning
ASDA's access to Stanelco's RF sealing technology for food retail in the UK and
Ireland. Such agreement will include details of the duration of any
exclusivity.

The Board of Stanelco plc (the 'Company') is pleased to announce the placing by
KBC Peel Hunt of 38,000,000 ordinary shares ('New Ordinary Shares') at a price
of 12.825p per share to raise approximately £4.8 million (approximately £4.7
million after expenses). The proceeds of this placing will be used primarily for
working capital relating to existing development projects.

Application will be made to the UK Listing Authority for the New Ordinary Shares
to be admitted to the Official List and to the London Stock Exchange for such
shares to be admitted to trading on the London Stock Exchange's Market for
listed securities. Admission of the New Ordinary Shares is expected to become
effective on 15 February 2005.

The New Ordinary Shares will be issued credited as fully paid and will rank pari
passu in all respects with the existing Ordinary Shares, including the right to
receive all dividends and other distributions declared or paid thereon following
admission.

The Placing is conditional upon the Placing Agreement between KBC Peel Hunt and
the Company having become unconditional in all respects and not having been
terminated prior to Admission of the New Ordinary Shares, and admission of the
New Ordinary Shares becoming effective by 15 February 2005 or such later date
(not being later than 25 February 2005) as the Company and KBC Peel Hunt may
agree.



For further information please contact:

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

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

Julian Blunt
KBC Peel Hunt Ltd
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.

END


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