for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

RNS re court case

RNS Number:9774J
Stanelco PLC
21 March 2005

21 March 2005

Stanelco plc ("Stanelco")
Stanelco wins leave to appeal

Stanelco RF Technologies Limited, a subsidiary of Stanelco, the RF (radio
frequency) applications group has been granted leave to appeal over the findings
made against it in its long running dispute with BioProgress Technology Limited.

In the hearing at the High Court on Friday 18th March the Court also stayed all
further proceedings relating to the dispute, including BioProgress' claim for
damages and the process directed at implementing the judge's initial finding
until after the appeal is heard. BioProgress were also ordered to pay 9,750
towards Stanelco's costs for this hearing and an earlier application by
Stanelco. BioProgress were also given leave to appeal the court's trial
judgement.

Ian Balchin, Chief Executive of Stanelco commented:

"This is a very significant result for Stanelco and leaves the way open for us
to appeal the decision of the Patents Court, which we now intend to do. We are
committed to protecting our technology and remain confident in our litigation
against BioProgress that Stanelco will retain access to the technology which we
developed."

- Ends -

Mixed messsage - BOTH parties now have leave to appeal original judgment, so could end up worse for SEO. But, SEO this time granted costs and procedures stemming from original judgment now stayed until after appeal. So SEO must have convinced judge they had a clear case for appeal. But does not add any weight to the suggestion that appeal will be won - only that they have a case to be heard. So we wait again. But I suspect the SP will relax a little higher on this news. We'll see later today if I'm right.

SD

nothing from bprg apart from their results. my reading of this statement is basically , all bets are off. it's almost like we are back to last year. only this time the cc is not the focus of attention for seo. instead the cc is something going on in the back ground which , if we get anything out of it , will be the icing on the cake. if the verdict stays the same , it wont affect us as it is already in the price.

160m forecast from the FMC deal earlier, where has that gone? Should they have forecast that so early?


This from part of the Bioprogress report....

"It is therefore difficult to accurately forecast the Company's financial
performance during the early and pre commercialisation phase of its licensed
technologies. This is a challenge for the Company's management but is offset by
ensuring the company has a strong balance sheet with sufficient cash not only to
underpin the companies financial security while revenues are uncertain but also
to reassure its customers and licensees that it has the financial strength to
survive during the period it is readying its technologies for commercialisation.
This is an important issue for potential licensees as entering into a new
technology licensing agreements involves the commitment of substantial resources
by the licensee.

A strong cash position also enables the Company to delay licensing discussions
for newer technologies like WAFERTABTM until a much later stage in their
commercial development when they are demonstrable. This enables much higher
value to be secured for shareholders from customers or licensees than was
possible in the earlier stages of the Company's development when it had fewer
resources.

The Company will increasingly be able to control and forecast its revenue stream
more accurately, and its financial performance will also stabilise as the XGEL
(R) technologies become demonstrable and the Company can generate revenues by
the sale of machines and film in markets and product fields outside of those it
has already licensed and where licensees control the rate of revenue stream.

The revenue and profit contribution of BioTec Films has been lower than
anticipated in 2004 and this will continue in 2005 as the market for simple
relatively unsophisticated dissolve-in-the-mouth products has matured and become
generic. There is more competition as these products do not require
pharmaceutical standard manufacturing facilities and margins in this sector have
been eroded.


And this from the High Court judgement twix Stanelco and Bioprogress...

"21 March 2005

Stanelco plc ('Stanelco')
Stanelco wins leave to appeal

Stanelco RF Technologies Limited, a subsidiary of Stanelco, the RF (radio
frequency) applications group has been granted leave to appeal over the findings
made against it in its long running dispute with BioProgress Technology Limited.

In the hearing at the High Court on Friday 18th March the Court also stayed all
further proceedings relating to the dispute, including BioProgress' claim for
damages and the process directed at implementing the judge's initial finding
until after the appeal is heard. BioProgress were also ordered to pay 9,750
towards Stanelco's costs for this hearing and an earlier application by
Stanelco. BioProgress were also given leave to appeal the court's trial
judgement.

Ian Balchin, Chief Executive of Stanelco commented:

'This is a very significant result for Stanelco and leaves the way open for us
to appeal the decision of the Patents Court, which we now intend to do. We are
committed to protecting our technology and remain confident in our litigation
against BioProgress that Stanelco will retain access to the technology which we
developed.'"

Doesn't look very good for one of the company's involved does it? Also, is there a breakdown of the consultative fees payed by Bioprogress..and to who?

just reading apprpiate bits in bprg results. it seems the litigation costs have hit them hard, (i thought they had insurance?), and it seems the results were written before fridays hearing. it is becoming evident that this thing should have been settled long ago out of court as both parties feel that the ip is theirs, and both parties are behaving like a dog with a bone.( no pun intended, sd). i am sure something could have been worked out a ,long, long time ago, possibly shared ownership of some sort? both companies would now have seen a years revenue from the technology, and not a costly cc. lets get it all out today , then it can disappear away into the background while we wait the THE rns.

Don't count your chickens bosley with that rns, I think you have a VERY long wait!

If litigation costs have hit them hard, what about SEO 's costs, who have less cash to spare.

aldwick, we have recently read in seo's results how hard the cost have hit seo. i was under the impression bprg had taken out insurance to cover costs. thats all.
rayrac, why do you think it will be a VERY long wait?

eric, good to hear from you. i just thought it a bit strange, you not posting , when we had had such a good day.

Expect the buy on rumour, sell on news brigade to hit today ahead of Asda RNS.
Friday rumour was cc won but really nothing has changed, just chance to appeal which is good but still there and could still go either way UNLESS BPRG/SEO give up and come to a sensible out of court agreement!!! Fat chance of that!!

absolutly right out of court badly needed

Some big buys going through today, over 1m and now 2.3m...hopefully the profit takers are now out and up we go again:-)
Di

Just dropped into St Austell library - Pretty awful town (sorry Cornish folk) although Fowey is magic. My reading of cc outcome is very positive. If you look back at the Finals, it is clear that their are patents established on each side. The main block for SEO had, they assumed, been cleared by quotation of older patents which presumably were now in the public domain. If this reading is correct, SEO own patents which block BPRG proposed developments. Thus the best way forward is some form of agreement; either they compete openly or one pays royalties to the other. I suspect this is more important to BPRG and SEO may be happy with either route. The other significant point is that this is a High Court ruling compared with the presumably narrower Patent Court ruling.

reyrac: bos reference was to ASDA contract which has to happen by 10th April, otherwise SEO would be open to sell to Tesco et al.

di: The trades appear to be getting larger which suggests more institutional action. The attraction of SEO to investment funds should certainly grow once we have the ASDA contract as, with the entry into the small cap index, it becomes attractive for a stake. Gone are the penny stock days. But hold on for the ride you penny stock players - see this one through to glory!

Eric

Eric
You are forgetting this is the day Mon 21 the Tracker Funds kick in, may be thats why we are seeing the larger institutional trades.

All gone quiet folks? the baited breath!!! Well, I topped up late morning today. Took my average above 7.5p!!! but with big buyers accumulating and the hoped for good news due anytime within next 12 trading days I couldn't resist another batch. Have faith folks but my opinion is that so far smaller investors and traders have determined the fate of SEO sp much to amusement of MM's, this privilege is being removed and is becoming more in the hands of larger investors and one good RNS and it will be into the 20's and beyond. Nice 4.7m buy today, it wasn't me --- if only!! 4.7m x potential 50pps profit, Hmmm!!

evening. just re reading this mornings rns.

'This is a very significant result for Stanelco and leaves the way open for us
to appeal the decision of the Patents Court, which we now intend to do. We are
committed to protecting our technology and remain confident in our litigation
against BioProgress that Stanelco will retain access to the technology which we
developed.'

i think the key phrase is "that Stanelco will retain access to the technology which we developed." it's almost as though seo are changing tack and not going for outright ownership of the technology but are willing to share the rights. this is fair, i think. bprg may have had the original idea, but it was seo that did the r and d and brought a finished usable product to market. with the way the courts are starting to favour seo then there must be a good chance of shared ownership being the final outcome.

morning. hoping for a quiet day today.

bosley: You are right but if I have an idea, and patent it, I would want to develop it myself because otherwise I might lose all the benefits! Clearly confidentiality agreements are useless. So I will up my stake in SEO now and enjoy the ride.

johngtudor
This isn't a ride its a change of life.

what is happening with my seo babies today? Any news I have missed?

robinhood
My seo babies are tucked up in bed, no news good time to buy.

they'll be walking and talking in no time, and then there'll be no stopping them - you know what toddlers are like - new pair of shoes every 3 months - that's how SEO will grow too.

SD