Trading Update

Tanfield Group PLC
22 January 2007



                               Tanfield Group PLC

                          ('Tanfield' or 'the Group')

                                 Trading Update
                                        
             Tanfield to Launch Electric Vehicle for North America;
             Strengthens Supplier Partnership Agreement with Enova

Smith Electric Vehicles, a trading division of The Tanfield Group Plc (TAN), is
pleased to announce that it has entered into a significant production supply
agreement with Enova Systems (AMEX: ENA and AIM: ENV and ENVS); a leading
developer of  proprietary electric, hybrid and fuel cell digital power
management systems.

Tanfield has worked in partnership over several months with Enova, to develop
two high performance electric drive train  systems for a Smith Electric Vehicles
zero emission van and truck respectively. Under the agreement, Enova will 
exclusively supply a minimum of 200 electric drive trains to Tanfield during
2007. Tanfield will integrate a 120kw  electric drive system into the Smith
Newton, the world's first zero emission 7.5t truck. A 90kw electric drive system
will be installed in the Smith Edison, the world's first all-electric 3.5t van.

Enova will also work in partnership with Tanfield to develop an electric drive
train for a 12 ton version of the Smith  Newton, specifically designed for the
North American market.

Darren Kell, Chief Executive of The Tanfield Group Plc, said: 'We are developing
a US-version of Newton ahead of  schedule in order to fully exploit growing
demand for our zero emission vehicles in North America.

'Tanfield is already in negotiations with a US-based global consumer brand,
along with several global logistics  operators, over the supply of Newton
vehicles into their North American urban delivery fleets.'

'The Enova components contribute towards a best-of-breed solution for our 
class-leading electric vehicles.

'We will work closely with Enova on the development of future products in the
Smith Electric Vehicles portfolio, for  both Europe and North America.'

Mike Staran, Enova's Executive Vice President, said: 'This production agreement
with Tanfield consolidates our position  as a market leader for electric drive
trains.

'But more importantly, the development of a solution for Smith Newton for North
America offers a truly enormous  opportunity for further volume sales, through
the supply of solutions for Smith vehicles in the USA and Canada.  Tanfield is
rapidly establishing its position as the world's leading commercial electric
vehicle manufacturer and Enova  is convinced that there is significant untapped
demand for battery-powered vehicles worldwide - and that Tanfield's  vehicles
can exploit this opportunity.

'The volume potential and market size, with a customer such as Tanfield, is
significant in both the short and long  term. We are delighted that Tanfield has
selected us as their partner and we look forward to further optimizing our 
relationship with them.'


Enquiries:

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

Tom Jenkins
Daniel Stewart & Company Plc          Tel. [phone]

Media Enquiries:

Dan Jenkins
The Tanfield Group Plc                Tel. [phone]

ENDS



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