Trading Update

Tanfield Group PLC
11 January 2007





                               Tanfield Group PLC
                          ('Tanfield' or 'the Group')
                                        
                                 Trading update


The Directors of Tanfield are pleased to report on developments in the latter
part of the financial year ending 31  December 2006 and confirm that they remain
comfortable with market estimates for the year just completed.

Significant highlights of this period include:

Powered Access Division
Tanfield's aerial work platform division, UpRight Powered Access, has
successfully completed its transition to the Group's new UK production facility,
Vigo Centre.

Vigo Centre is now fully operational, with the total transfer of UpRight machine
assembly from the former UpRight factory in Dublin, Ireland, delivered on
schedule.

For the first time last week, Vigo Centre achieved production output of more
than 50 UpRight machines. The Directors now expect to achieve consistent output
of 100 units per week by the end of February - well in advance of the original
target date. 100 units per week will mark the successful completion of Phase Two
of the production plan, with further incremental increases in machine output to
follow during 2007.

The order book remains buoyant, including another fleet order last week for 120
UpRight Powered Access machines, in excess of 1 million Euros, for a client in
Scandinavia.

The Group has already re-introduced manufacture of key strategic product lines
at its facility in Fresno, California  and will officially re-launch the UpRight
brand in North America at The Rental Show in February.

Specialist Vehicles Division
The Smith Newton, the world's first high-performance 7.5 tonne electric truck,
has been extremely well received since  its launch in December 2006.

Smith Electric Vehicles has trials of Newton underway with both business-to-
business delivery company TNT Express UK  and contract logistics operator Ceva
Logistics. TNT Express UK has already committed to purchasing up to 200 Newtons 
over the next two years, subject to the results of the trial. TNT NV is
presently carrying out a far-reaching  feasibility study to assess the economic
viability of deploying Newton in other major European urban centres.

Interest in Newton from major fleet operators remains extremely high and the
Group is in negotiations with a  significant number of major companies over
similar trials.

Smith Electric Vehicles remains on course to launch several new zero emission
commercial vehicles in 2007, including  variations on the Newton chassis, plus
the Smith Edison all-electric van.
Darren Kell, Chief Executive of The Tanfield Group Plc, said: 'UpRight Powered
Access production is now fully transitioned and de-risked.

'We are ahead of schedule to further significantly ramp up volume output of
UpRight Powered Access products. In addition, the global appetite for UpRight
products continues to grow across Europe, the Middle East and Asia-Pacific
territories.

'The take-up in these markets has surpassed our initial expectations and
reinforces our view on the worldwide level of brand loyalty for UpRight
products. We anticipate the re-launch of UpRight in North America next month
will elicit a similarly strong response.

'Enquiry levels for Smith Electric Vehicles are at an all-time high, following
the successful launch of the Smith Newton.

'Newton reinforces our position as the world leader in road-going commercial
electric vehicles and provides us with an excellent platform to further develop
sales, in both the UK and Europe.'

Enquiries:

Darren Kell, Chief Executive,
Tanfield Group Plc                    Tel. [phone]

Lindsay Mair
Daniel Stewart & Company Plc          Tel. [phone]





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