Strategic Opportunities

Tanfield Group PLC
05 May 2005



                 Tanfield Group plc ('Tanfield' or 'the Company')

                  Development of Strategic Growth Opportunities


The Directors of Tanfield are pleased to announce that they have established a
partnership supply agreement with a major European commercial vehicle
manufacturer. Under the terms of the agreement Tanfield will undertake to
electrify two vehicles in their range incorporating Azure Dynamics' control
technology. These electric vehicles will be mid range delivery vans and minibus
types. Initially they will be sold through the UK distribution network but it is
expected that other European territories will be added in due course.


The Directors are also pleased to announce that they have signed an outline
agreement with QinetiQ plc which will allow the Group future access to QinetiQ's
advanced energy technology, in particular their fuel cell technology, and to
evaluate with QinetiQ the opportunities to exploit that technology in the
future. Further detailed discussions are to take place as regards the way that
the Group and QinetiQ can maximise the commercial benefit from exploiting the
technology.


The Directors believe that these are significant strategic steps for the growth
of SEV, the Group's electric vehicles division.


Roy Stanley, Chief Executive,
Tanfield Group Plc Tel. [phone]


Ruari McGirr or Marc Young
Daniel Stewart Tel. [phone]




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