Contract Update

Tanfield Group PLC
12 May 2006


                               Tanfield Group plc

                         ('Tanfield' or the 'Company')

                                Contract Update


The Directors of Tanfield are pleased to announce that since the commencement of
the service and maintenance contract between Dairy Crest and the Group's Smith
Electric Vehicles (SEV) in October 2005, Dairy Crest has acquired the Midlands
Co-op and the Express Foodservice, London, door step delivery business. This has
resulted in an additional 400 vehicles joining their fleet. With effect from mid
May 2006, Dairy Crest proposes to outsource the maintenance of these additional
vehicles to SEV. This will increase the current fleet under contract from Dairy
Crest to over 2600 vehicles.


Enquiries:

Roy Stanley, Group Executive
Tanfield Group plc                         Tel:           [phone]

Ruari McGirr
Daniel Stewart & Co plc                    Tel:           [phone]




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