Re Contract Gains

TEG Group (The) PLC
05 April 2007




For release                           7:00am                       5 April 2007





                            The TEG GROUP PLC (TEG)

                            ('TEG' or 'the Company')



                               Re: Contract Gains


   TEG to be Awarded Waste Contract from Greater Manchester Waste Limited and
                               Calderdale Council



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 been named as a successful bidder for a 2 year
contract ('Interim Contract') to process a total of approximately 44,000 tonnes
of green and garden waste from the Greater Manchester region. The Interim
Contract with Greater Manchester Waste Limited will be finalised in April and
the contract is expected to commence on 1 May 2007. The Contract is worth
approximately £900,000 over the 2 year term. The contract includes an extension
of up to 1 year.


The Interim Contract is a transitional arrangement to cover the period until new
plants to process both food waste and green and garden waste are in place under
the terms of the Greater Manchester Waste Disposal Authority's PFI Contract
('PFI Contract').It comes on the back of TEG's announcement on 29 January 2007
that it is a principal sub-contractor to the Viridor-Laing consortium that has
been awarded preferred bidder status for the PFI contract in which TEG is the
exclusive supplier of In Vessel Composting ('IVC') technology to the consortium.


The Interim Contract is for supply to the TEG plants at Todmorden and at
Sherdley Farm, Preston and this will provide the base green waste supply
required by the 2 plants over the lifetime of the contract. The first two lines
at the Todmorden facility are expected to be on line in advance of the
commencement of the contract. Lines 3 and 4 are expected to be completed later
in 2007.


In addition, the Company has been awarded a contract by Calderdale Council to
process food waste from its forthcoming collection trials at the Todmorden
facility. The contract will last for 40 weeks, the lifetime of the initial
trial, which will be reviewed by the Council following the initial term.


Commenting for TEG, Chief Executive Mick Fishwick said:

'We are delighted to have secured this new business with Greater Manchester
Waste Limited and Calderdale Council. It represents further waste streams
secured for Todmorden, which should come on line in April in time for the
commencement of the contracts. We expect to secure a number of further contracts
in the near future that will fill the capacity of the first 2 lines at the
facility. Construction at Todmorden is well ahead of the original schedule and
this has allowed us to bid competitively for these contracts'.



ENDS


Contact:


The TEG Group Plc                         Tel: [phone]

Michael Fishwick, Chief Executive


Adventis Financial PR                     Tel: [phone] 

Tarquin Edwards                                07879 458 364


Canaccord Adams (Nomad)                   Tel : [phone] 7050 6750

Chris Bowman/Robert Finlay


Editor's Notes:


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 and is entirely LATS compliant.


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. The Company'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.




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