Dairy Crest Contract

Tanfield Group PLC
29 September 2005


                               Tanfield Group Plc

                    Smith Electric Vehicles and Dairy Crest

The Tanfield Group Plc ('Tanfield') is pleased to announce that Dairy Crest
Limited ('Dairy Crest') is proposing to transfer the majority of its household
vehicle fleet maintenance activity to Tanfield's subsidiary, Smith Electric
Vehicles ('SEV'), effective from Sunday 16th October 2005.

This will involve:

1. The service and maintenance of 2,200 vehicles, of which over 1,100 are
electric, covering the whole of the South of England; and

2. The replacement of a percentage of these vehicles every year on a contract
hire full maintenance basis.

The vehicles are based at 104 Dairy Crest depots and SEV will undertake major
work from main Dairy Crest workshops at Ashford, Farnham, Southampton, Bristol
and Totnes.

The proposed purchase contract which has a worth of nearly £6 million per year
includes provision for SEV to take on 78 people transferring on TUPE from Dairy
Crest. SEV's fleet maintenance wing currently employs more than 80 qualified
service engineers, who maintain over 3,000 vehicles for a range of clients
across the UK. The transferring employees are also skilled, qualified engineers
and will provides extensive field engineering capability in the South of England
to support roll out of the new electric vehicles that SEV is bringing to the
market.  The Directors believe that this transfer will both have a significant
impact upon the growth of SEV and will support its existing business.

For further information call:

Tanfield Group Plc
Roy Stanley - Chief Executive - 01207 521111

Daniel Stewart & Co
Ruari McGirr - 020 7374 6742




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