Biome Tech Regulatory News (BIOM)

30 Aug 2005 11:08

Stanelco PLC30 August 2005 30 August 2005 Stanelco PLC ("Stanelco" or "the Company") EGM Statement Stanelco PLC is pleased to announce that all the resolutions at the Company'sEGM held at 10.00a.m. this morning were duly passed. The acquisition of BiotecHoldings GmbH ("Biotec") will therefore be completed shortly. As a result, the previously announced conditional sale of a 50% interest inBiotec to SP Metal S.A. ("SP Metal") will also shortly become effective and theconsideration received by Stanelco will be used to fund 50% of the Biotecacquisition. Under the joint venture more of Biotec's considerable IntellectualProperty portfolio will be commercialised. Biotec have received a conditionalcommitment from SP Metal for an annual purchase of approximately 10,000 metrictonnes of Biotec's biodegradable plastic pellet worth in excess of €20m peryear. Stanelco and SP Metal had initially agreed to increase Biotec's productioncapacity of biodegradable pellets to at least 12,000 metric tonnes within ninemonths via a joint investment programme of up to €4.5m. However due to furtherrecent improvements in both the production procedures and the ability to processthe materials, a capacity of 24,000 tonnes for an investment of €2m is nowenvisaged within the same period. In an earlier announcement today, NatureWorks LLC, a wholly owned subsidiary ofCargill Inc has agreed the supply of the major component of Biotec's Starpolmaterials which will make Biotec's products price competitive with a number ofmaterials currently used in the target market segments. Business update GREENSEALTM Commercial trials with ASDA Stores Limited ("ASDA") suppliers have beensuccessfully completed and the 12 month exclusivity period with ASDA, who havecommitted to converting several hundred machines in the period, commenced on28th July 2005. To date, two contracts orders have been received from dedicatedASDA suppliers covering 5 machines in total. Martin Wagner, recently recruited from Asda, as Commercial Director of StanelcoRF Technologies Limited, is now leading the drive for roll out and furthercommercialisation in the UK. In addition the Company has reached commercial agreement with G Mondini Spa, aworld leading manufacturer of tray lidding machines, to jointly develop apurpose built radio frequency ("RF") tray lidding machine using Stanelco'sGREENSEALTM technology. This is an important development as it should allowStanelco to supply its technology to food packers as part of new originalequipment manufacter ("OEM") machines as an alternative to retrofitting existingmachines in operation. This will greatly speed up the acceptance of theGREENSEALTM technology as an industry standard within the packaging industry. We remain confident of being able to announce a number of additionaldevelopments in relation to the commercialisation of this technology in thecoming months. Frogpack The commercialisation of Frogpack, our simple, new, patented, lightweight,highly impact resistant, low cost and greener packaging format is developingwell with orders received from existing distributors and agreements beingnegotiated with further distributors in North America. Philip Lovegrove, Chairman of Stanelco said: "I am pleased with the continued progress at the company. We have a strongmanagement team with some extremely exciting opportunities ahead of us. Thepassing of all resolutions at today's EGM, allowing us to complete the Biotecacquisition will enable further progress towards our aim of becoming one of theworld's leading exponents of viable, alternative, environmentally responsiblepackaging methods." Ends For further information please contact:Ian Balchin, Chief ExecutiveStanelco PLCTel: +44 (0)2380 867 100 Jonathon Brill/Billy CleggFinancial DynamicsTel: +44 (0)20 7831 3113 About Stanelco plc The Stanelco Group of companies (the Group) has brought together expertise inradio frequency (RF) technology, RF applications and biodegradable materialsciences to create a revolutionary range of packaging technologies. Stanelco's philosophy is that new products and processes must offer solutionsand 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 andthen work with partners in order to reach the markets; and under thesecircumstances Stanelco will usually seek to license its technology. Stanelcoinvests considerable time and resources in ensuring its technologies areprotected via layers of patents wherever possible. In this way Stanelco believes it can minimise commercial risk and preserve thehighest value for shareholders. The products offering the prospect of near term revenue generation are beinggiven priority over the Group's resources. Stanelco was founded in 1953 and is a world leader in the development of radiofrequency technologies for processing polymers for edible and packagingapplications and the design and manufacture of optical fibre technology,induction heating and dielectric welding equipment. Stanelco's Currentdevelopments 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 Stanelcoplc group. This information is provided by RNS The company news service from the London Stock Exchange