Re Agreement

Stanelco PLC
24 September 2004



                                  Stanelco plc

    Grampian Country Food Group to trial Stanelco's Tray-Lidding Technology


Stanelco PLC, the RF (radio frequency) applications group, is pleased to
announce that Grampian Country Food Group (Grampian) has agreed to trial
Stanelco's RF sealing technology for use in tray-lidding machines in its food
packaging operations.

Grampian is one of the UK's largest food companies, (www.gcfg.com), and subject
to the success of the trial Grampian will enter into commercial discussions with
Stanelco for the introduction of the technology across the whole Group.

Ian Balchin, CEO, of Stanelco commented:

We are very pleased to be supplying our RF Sealing Technology to Grampian for
this trial. There is considerable excitement across the packaging industry about
the new opportunities that Stanelco's technology is creating. We look forward to
a successful test process and subsequently a long ongoing relationship with
Grampian into the future.

                                    - Ends -

For further information please contact:

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

Jonathon Brill
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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