Trading Update

Tanfield Group PLC
02 February 2007


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

                                 Trading Update

               Smith Electric Vehicles to Supply Marks & Spencer

                      with Zero Emission Delivery Vehicles


The Directors are pleased to announce that Tanfield has signed a significant
supply agreement with Marks & Spencer Group PLC ('Marks & Spencer').

Under the agreement, Tanfield's trading division, Smith Electric Vehicles, will
sell its Newton zero emission vehicles to Marks & Spencer. Marks & Spencer will
deploy these Newton vehicles in various city centre logistics operations, with a
view to Smith vehicles replacing Marks & Spencer's urban diesel fleet where
pertinent.

Ian Mumby, Head of Food Logistics and Supply Chain, Marks & Spencer, said: 'We
are delighted to be one of the first major companies in the UK to explore the
opportunities zero emission vehicles bring.


'The Newton electric vehicle is not only environmentally friendly but
cost-effective and its quietness makes it perfect for deliveries in residential
areas.


'Marks & Spencer recently announced Plan A, our 100 point eco-plan, which will
see us become Carbon Neutral within five years. Zero emission vehicles such as
the Newton could potentially play a large role in helping us meet that
commitment.'


The Directors were also delighted to welcome the Prime Minister, the Rt Hon Tony
Blair MP, who officially opened Tanfield's new headquarters, Vigo Centre, in
Tyne & Wear, England earlier today.


Mr Blair praised the Smith Newton, the largest and most powerful zero emission
truck ever produced. Built by Smith Electric Vehicles, the 7.5 tonne Newton is
totally battery powered, making it perfect for work in congested city centres.


Mr Blair said: 'In the years to come, this operation is absolutely where the
future will be.


'It is fantastic that you have built up this company so quickly. This will be a
company that will really make its presence felt not just in the North East, but
actually throughout the world.'


Darren Kell, Chief Executive, said: 'During his visit, the Prime Minister made
it clear to us, both publicly and privately, that he is incredibly supportive of
our business model.  He recognises the truly global opportunity for us as the
world's leading manufacturer of commercial zero emission vehicles.


'This opportunity was underlined emphatically by the fact that today Marks &
Spencer has ordered its first vehicles from Smith.


'Marks & Spencer is incredibly committed to reducing the carbon footprint of its
fleet and recognises that our solution is the most economical and
environmentally-friendly.'


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


                      This information is provided by RNS
            The company news service from the London Stock Exchange