Joint Venture Agreement

TEG Group (The) PLC
27 July 2007

For release                                                                

                            The TEG GROUP PLC (TEG)
                            ('TEG' or 'the Company')

                           TEG and Glendale Announce
                          Horticultural Joint Venture

        First Two Plants Confirmed for Horticultural Product Manufacture

The TEG Group Plc ('TEG' or 'the Company'), the AIM-listed cutting edge green
technology company, which converts organic wastes into natural organic
fertiliser, announces it has formed a Joint Venture company with Glendale
Managed Services Limited ('Glendale') - the 'green services' division of
Parkwood Holdings plc - to build and operate TEG Silo Cage In-Vessel Composting
plants to produce horticultural compost products. The Joint Venture ('JV') is a
progression from the collaboration between the companies that was announced on
8th February 2006.

The JV will be called Verdia Horticulture Limited ('Verdia') and its focus will
be on building and operating medium scale facilities, typically 10-15,000 tonnes
feed per annum to produce horticultural grade products for sale to Glendale and
to regional horticultural markets. It is anticipated that Verdia will build
between 6 and 8 facilities over the next 2 to 3 years, geographically spread
throughout the UK. It is anticipated that the capital required will be funded
largely by bank finance.

TEG will supply TEG Silo Cage plants to Verdia and will provide technical
expertise and support, as well as marketing services for waste supply to the
plants. Glendale will provide compost product expertise and knowledge of the
horticultural product market, together with analytical and compost product
services from its composting subsidiary, Eco Sci. Verdia will bid for medium
scale waste contracts to both Local Authorities and the private sector,
sufficient to support the scale of facilities it will operate.

The first two facilities are expected to be Clayland's Corner in Somerset and
Hill Barton in Exeter. Both sites have planning permission in place for TEG Silo
Cage technology. It is anticipated that construction at the sites will commence
in Quarter 3 of 2007.

Commenting for TEG, Chief Executive Mick Fishwick said 'we see the formation of
a joint venture as a natural step forward with Glendale. Verdia offers TEG the
opportunity to develop plants in a niche of the sector that we are not targeting
elsewhere. The plant model is different from the traditional waste management
model in that there will be a greater level of value for the end product than is
typical for a pure waste management facility. We have worked closely with
Glendale for the last 16 months and it has become clear that our technology and
expertise fits well with Glendale's product expertise and presence in the Local
Authority and horticultural sectors.'

'We have previously announced that the site we are developing at Clayland's
Corner was to produce horticultural grade products and the site fits naturally
with Verdia. It is however also pleasing that the JV immediately brings an
additional opportunity to develop a TEG plant at the Glendale site in Exeter.'

Commenting for Glendale, Managing Director Nick Temple-Heald said 'This move is
part of Glendale's strategic plan to develop its diverse suite of green services
to Local Authorities and the Commercial sectors.'

'Verdia offers Glendale a new and exciting opportunity to expand its recycling
activities within the rapidly developing UK composting market and also provides
the ideal complementary activity to the Company's Devon based 'EcoSci' green
waste recycling operations.'

'Together, Verdia and Glendale will 'close-the-loop' of biodegradable waste
management by developing unique, bespoke horticultural products from the new
facilities in conjunction with EcoSci's research team and returning the new
products to high-quality end-use on local parks and gardens. '

Each company will hold 50% of the equity in Verdia. The JV agreement contains
the normal change of control provisions should a third party take a 75% interest
in either parent company.


ENDS

Contact

The TEG Group Plc                         Tel: [phone]
Michael Fishwick, Chief Executive

Glendale Managed Services                 Tel: [phone]
Ian Stephenson, Director of Recycling

Adventis Financial PR                     Tel: [phone]
Tarquin Edwards                                07879 458 364
Chris Steele                                   07979 604 687

Cannacord Adams (Nomad)                   Tel: [phone]
Chris Bowman


Editor's Notes:

TEG
TEG provides an in-vessel composting technology, which is one of the few
approved technologies capable of treating animal by-product (ABP) waste. Plant
economics are predominantly 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 fertilises, retains moisture, provides structure
and reduces the incidence of plant disease. TEG's Silo-Cages are housed in
self-contained buildings, are not unsightly and are environmentally friendly.

Customers include local authorities, waste management companies, food
processors, farmers and landowners. TEG's expanding market is driven by
increasingly stringent EU and UK legislation regulating the treatment and
disposal of organic waste. Statutory targets for the diversion of waste from
landfill increase annually through to 2020, increasing TEG's market opportunity
year on year. The Waste Resource Action Programme estimates that 450 composting
plants will be needed by 2020 to satisfy local authority requirements alone, and
there is increasing demand from the private sector driven by ABP legislation.

NOFCO is a marketing company specialising in the development of end markets for
compost products, an important aspect of all plant developments and key to local
authority development. The company has an expertise in the development of
agricultural and horticultural markets and this capability is to be provided to
customers to enhance TEG's overall service offering.

Glendale

Glendale is the leading provider of specialist green service solutions and the
largest operating division within Parkwood Holdings plc.

Its portfolio of green services is led by Managing Director, Nick Temple-Heald
(picture available) and includes:

   • Glendale Countryside - incorporating Civic Trees Ltd
   • Glendale Grounds Management
   • Glendale Recycling
   • Glendale Golf
   • Glendale Horticulture - incorporating Coblands Nurseries Ltd
   • Glendale Environmental

Glendale, formed in 1988, has a strong relationship with clients in both the
public and private sector and operates more than 45 contracts, largely on behalf
of local authorities, the Ministry of Defence and corporate clients.

Glendale is a national company with a local presence. Offices are located across
the UK and its headquarters are at The Coach House, Chorley, Lancashire.
Glendale Golf are the management company at Duxbury Park Golf Course.








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