Re Contract

Stanelco PLC
10 August 2006


10th August 2006


                                  Stanelco plc

                             Re agreement with ASDA


Stanelco plc ('Stanelco') is pleased to announce an update regarding its
GreenSeal technology following its initial 12 month exclusivity period with
ASDA.  Stanelco will continue to work with ASDA as they support our GreenSeal
technology as a way to achieve part of ASDA'S greater business objective of
meeting their obligations around sustainability.

The original terms of the agreement between ASDA and Stanelco, as announced on
24 March 2005, for Stanelco's GREENSEAL technology have been extended for
another 12 months, other than the exclusivity arrangement with ASDA which has
been waived. This will allow Stanelco to offer the GREENSEAL technology to
non-exclusive ASDA suppliers, as well as ASDA.

Martin Wagner, CEO of Stanelco said:

'This is an important development with ASDA and shows the strength of our
relationship. Whilst all the major components of our agreement remain ASDA have
agreed to relax the exclusivity of usage for non ASDA suppliers.  This means
that suppliers to ASDA who also pack for other retailers can now be approached.

A significant hurdle for us has been identifying packing lines that were
exclusively for ASDA usage. By removing this obstacle we can now effectively
offer our GreenSeal technology to any user. This negotiation with ASDA has been
over a protracted period of time and we are grateful for their unwavering
support.'

                                    - Ends -


For further information please contact:

Martin Wagner, Chief Executive Officer
Stanelco PLC
Tel: [phone]

Jonathon Brill/Caroline Stewart
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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