Trading Update

Tanfield Group PLC
05 December 2006


                               Tanfield Group plc

                         ('Tanfield' or 'the Company')

                                 Trading Update

The Directors of The Tanfield Group Plc are pleased to announce a strategic
opportunity with two of the world's leading logistics and express operators, TNT
Express and TNT Logistics.

TNT today launches its trial of the first two Newton vehicles
from Smith Electric Vehicles. Both will be deployed in and around London.

Newton is the world's first high performance 7.5 tonne electric, zero
emission vehicle.

TNT Logistics will use one Newton as part of its contract with coffee retailer
Starbucks, based at a depot in Basildon, Essex. TNT Express Services UK &
Ireland will use the other Newton for business-to-business parcel delivery, on a
route into central London from Barking.

TNT Express has indicated that, following a successful limited trial period, its
requirement for a UK rollout would be at least 200 Smith vehicles and that it
will examine significant further deployment opportunities for its overseas
operations.

TNT Logistics will similarly further examine its requirements for Smith
vehicles, following the trial.

Darren Kell, Chief Executive of The Tanfield Group Plc, said: 'We are delighted
to supply the first of our new technology vehicles to TNT.

'This further demonstrates the market interest in our products and provides
insight into the latent demand for zero emission commercial vehicles.

'Smith Electric Vehicles is the world's largest manufacturer of road-going
commercial electric vehicles, in what has the clear potential to be an
incredibly fast-growing industry.'

Tom Bell, Managing Director of TNT Express Services UK & Ireland, said: 'This is
a huge step forward for our fleet in London. Not only is this one of the most
environmentally friendly vehicles on the market, there are also potential
significant cost savings in the long-term.

 'If we extended this to 10 per cent of our fleet in urban locations, the cost
savings to the company would run into millions of pounds.'

Neil Crossthwaite, Managing Director of TNT Logistics, said: 'We have allocated
our first zero-emissions vehicle to the fleet we operate for Starbucks, a client
which shares our commitment to minimising environmental impact wherever we can.
I am sure that other clients will be keen to become involved at the end of the
trial.'


Enquiries:

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

Ruari McGirr
Daniel Stewart & Company plc                       Tel. [phone]

ENDS




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