Biome Tech Regulatory News (BIOM)

16 Dec 2005 07:01

Stanelco PLC16 December 2005 16 December 2005 Stanelco plc ("Stanelco" or "the Company") Pre Close Update Stanelco is today issuing a Pre Close Update prior to reporting its PreliminaryResults to 31st October 2005, which are scheduled to be released in February2006. GREENSEAL Stanelco has made significant progress in the development and commercialisationof its GREENSEAL technology. We are currently working with ASDA and four of its key suppliers to fulfil theinitial stage of the ASDA contract. Current potential placements are expectedto lead to orders in excess of 50 conversions with one supplier to ASDA.Another supplier is presently indicating a requirement for another 30 machines. In order to avoid suppliers having to shut off machines for retrofit during thebusy Christmas period and to overcome any possible delays, the Company hasacquired several MAP (Modified Atmosphere Packaging) machines to convert tooperate GREENSEAL technology. These machines will be available to substitutesuppliers' machines in production, removing any obstacles of production beingperiodically offline. In addition, the Company is making significant progress with a number of OEM'sto adopt GREENSEAL as an option. This is likely to lead to further opportunitiesof deliveries in parallel to the retro fit programme with ASDA. Interest in the GREENSEAL product remains high. Outside the UK, the Companyremains in active negotiation with other major supermarket chains in both the USand Continental Europe and it is hoped the results of these discussions willimpact the current financial year. The first US specification machines are nowon their way to the United States to our partners Advanced Technologies. Biotec Sales of Biotec materials (Biodegradable, compostible and edible polymers basedupon starch) are continuing to both SPhere (formerly SP Metal) and othercustomers. The relationship with SPhere is working well. We are on schedule tosubstantially increase in 2006 the production capacity of these materials -including Starpol to 20,000 tonnes by early 2007. In the US we have experienced a great appetite for Biotec products and are nowin discussions with a number of major US companies across a range of consumersectors on both Biotec packaging alone as well as in conjunction with theGREENSEAL product. Sustainability is increasingly becoming a key considerationfor US companies as they look to reduce the use of oil based products. Pressure from environmental groups on the use of plastic is coming underincreasing scrutiny by Governments. The recent announcement in France thatplastic bags will be banned by 2010 has both demonstrated the potential value ofthe Biotec acquisition and at the same time opened up this market opportunityfor us. We continue to work on a full range of biodegradable materials toreplace plastics at the same or lower cost. Welsh Grant Funding We are pleased to announce that we have received a substantial offer of RegionalSelective Assistance funding in relation to a proposed production and R&Dfacility in Blaenau Gwent. The offer of funding will allow Stanelco to invest increating a c.£3m production and materials development facility based uponBiotec's technologies for the primary purpose of substituting conventionalplastic for packaging and other applications with biodegradable alternativesfrom replenishable sources such as starch. Cigarette Filters We announced our intention to dispose of our biodegradable starch-basedcigarette filter technology acquired through the Biotec joint venture.Rothschild have been appointed to seek out interested parties and we expect thisprocess to take a minimum of 6 months. The Board believes a successful sale ofthis technology should create significant value for shareholders. Quantum Finish The launch in Europe of Reckitt Benckiser's new automatic dishwashing productFinish Quantum (R) in addition to their increasing sales of Electrasol Gelpacs(R) in the same segment in the North American market is expected to contributetowards a growing royalty stream through our Aquasol subsidiary whichcontributed technology towards these products. ELECTRASOL, GELPACS, FINISH, QUANTUM, are trade marks of Reckitt Benckiser plc(RB.L) Frogpack A number of the distribution and manufacturing deals for Frogpack, (innovativeprotective transit packaging), have been restructured and we are now seeing anincrease in the number of leads to sell FrogPack products. Carclo Stanelco jointly owns a patent with Carclo plc for injection moulded watersoluble capsules for drug delivery and dietary supplements. We have madeencouraging progress in the last few months with this technology. We are workingclosely with a customer who intends to use the technology in veterinaryapplications. High level discussions are underway with major drug deliverycompanies on the human application of the technology. Conclusion The current year has seen steady progress on a number of fronts. The Boardbelieves that the Company will make further progress in 2006 and is increasinglywell positioned to exploit its market leading technology and IP. - Ends - For further information, please contact: Martin Wagner, 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), STARPOL 2000 (highly functional, low cost biodegradablepackaging material with food contact approvals) FrogPack high impact low costpackaging format, CradleWrap range of biodegradable air cushion packaging,Soluble tape, 100% water-soluble films and adhesives, Biodegradable Airbag (voidfill) packaging, edible hard-shell capsule technology, water-soluble detergentcapsules, edible sachets and waste packing. GREENSEAL, STARPOL, FrogPack and CradleWrap are all trademarks of the Stanelcoplc group. This information is provided by RNS The company news service from the London Stock Exchange