Re Contract

TEG Environmental Plc
14 December 2005



For Release                        7:00 a.m                     14 December 2005

                             TEG ENVIRONMENTAL PLC

                Planning permission granted for Swansea contract

TEG Environmental Plc ('TEG' or 'the Company'), the cutting edge green
technology company, which converts organic wastes into natural organic
fertiliser, announces that the Company has received planning permission for the
£925,000 plant to be constructed under its contract with the City and County of
Swansea ('Swansea' or 'CCS'), for the provision of the TEG Silo-Cage in-vessel
composting system.

This contract, announced in March 2005, represents TEG's first 'turnkey'
technology sale, including building and infrastructure, and will positively add
to TEG's revenues and earnings in 2006. The Company will draw down payments
against agreed contract milestones during the construction, commissioning and
handover phases of the contract.

The contract is for the design, supply and installation of a 14 cage TEG Silo
Cage plant to recycle 7,000 tonnes per annum of biodegradable municipal waste
collected by CCS. The product will be organic compost for use in agriculture and
horticulture. Plant installation and commissioning is expected to be completed
in mid 2006 with operational handover to CCS in late 2006 and final handover due
in late 2007.

Commenting, Mick Fishwick, Chief Executive of TEG Environmental, said:
'This technology sale, in combination with the granting of planning permission,
is a transforming event. It is excellent news for TEG and we hope that it
represents the start of a long-lasting relationship with CCS in the joint
further expansion of Swansea's composting capacity. As with all local
authorities, CCS has a growing obligation to divert waste from landfill and
compost its organic waste streams, and we hope there will be many more such TEG
plants to be built in the future.'

ENDS

Contact:

TEG Environmental Group Plc
Michael Fishwick, Chief Executive                     01772 314100

Binns & Co PR Ltd
Peter Binns/ Tarquin Edwards                          020 7786 9600

Editor's Notes:

TEG provides an in-vessel composting technology, which is one of the few
approved technologies capable of treating animal by-product waste. Plant
economics are driven by the gate fees charged, rather than the value of the end
product (compost). The TEG process is an economic alternative to landfill.

The Silo Cage system, one of the few technologies in Europe capable of treating
this waste, is a natural process producing compost as an end product, used as an
excellent soil conditioner that fertilizes, retains moisture, provides structure
and reduces the incidence of plant disease. TEG's Silo-Cages will be housed in a
self-contained building, are not unsightly and are environmentally friendly.

Potential customers include local authorities, waste management companies, food
processors, farmers and landowners. The Company's expanding market is driven by
increasingly stringent EU and UK legislation regulating the treatment and
disposal of organic waste.


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