Contract Win

Tanfield Group PLC
13 June 2007

                             The Tanfield Group Plc

                          ('Tanfield' or 'the Group')



                                  CONTRACT WIN



Tanfield is pleased to announce that Smith Electric Vehicles has won its first
contract from the Royal Mail for its next generation zero emission vehicles.



The Royal Mail has ordered one of each of the Edison and Newton higher function
delivery vehicles, for trials. The vehicles will be deployed in London, in
parcel and post distribution operations.



Edison is a sub-3.5t electric van, built using the Ford Transit shell. Newton is
sold in 7.5t and 9t configurations. Both vehicles have restricted top speeds of
up to 50mph and are capable of covering 150 miles on one battery charge.



Royal Mail has a fleet of over 33,000 commercial delivery vehicles operating
across the UK, including approximately 10,700 3.5t vans and van derivatives,
plus 2,500 7.5t trucks.



In line with a growing order book and increased interest in both Newton and
Edison, Tanfield is installing extra electric vehicle production capacity at
Vigo Centre, its 250,000sq ft assembly facility in Tyne & Wear, UK.



Darren Kell, Chief Executive of The Tanfield Group Plc, said: 'We are delighted
to have sold our first vehicles into the Royal Mail. The adoption of the Low
Emission Zone in London and expected road pricing in 10 other urban conurbations
across the UK will significantly increase the addressable market for electric
vehicles. To this end, we are now installing additional production capability at
a much faster rate than we had previously planned.



For further information:


The Tanfield Group Plc                                Tel: [phone]

Darren Kell, Chief Executive                          [e-mail]

Charles Brooks, Finance Director

Fishburn Hedges                                       Tel: [phone]

Morgan Bone                                           Mob: [phone]

James Benjamin                                        Mob: [phone]

                                                      [e-mail]

St. Helen's Capital plc                               Tel: [phone]

Ruari McGirr

Cenkos Securities plc                                 Tel: [phone]

Stephen Keys



                       website: www.tanfieldgroup.co.uk

Notes to editors
The Tanfield Group Plc is the world's leading developer and manufacturer of
road-going commercial electric vehicles and aerial work platforms. Tanfield is
headquartered in Newcastle with operations in the USA and Japan. It has two main
divisions:


Smith Electric Vehicles, was founded in 1920 and acquired by Tanfield in October
2004. Since its acquisition, Smith is developing into a world leader in new
technology electric vans and trucks with greatly enhanced performance, speed and
range capabilities. This makes them attractive for all fleet operators in large
towns, cities and closed industrial environment. For the first time, these fleet
operators have an economically viable, zero emission alternatives to using
diesel vans and trucks. Smith has an unrivalled UK-wide service and support
network, which already maintains over 5,000 vehicles for major fleet operators.
This core element of the business is beginning to fulfil its potential in terms
of addressing the requirements of large urban fleet operators, who want to
reduce their operational costs and more importantly, greatly reduce their carbon
footprint. Smith's airport offering is complemented by two specialist airport
vehicle sub-divisions; Jumbotugs and Norquip.

www.smithelectricvehicles.com


UpRight Powered Access, is firmly established as the UK's biggest manufacturer
of self-propelled aerial work platforms (such as 'cherry-pickers', 'scissor
lifts', 'trailer mounts', etc) and UpRight is globally one of the industry's
strongest aerial lift brands in what is a $7bn market. UpRight has assembly
facilities in the UK and USA, plus a wholly-owned subsidiary in Japan. Products
are sold through a strong global network of over 150 independent, full-service
distributors across Europe, North America, Middle East and Asia-Pacific regions.
Tanfield has been successful in extending the UpRight product range and
achieving significant increases in average weekly order intake, boosted in part
by working at height regulations.

www.upright.com

www.aerialaccess.co.uk

                                    - ENDS -




                      This information is provided by RNS
            The company news service from the London Stock Exchange