Re Contract

TEG Group (The) PLC
01 November 2007



For release                           7.00am                 November 1st, 2007


                       The TEG GROUP PLC (ticker: TEG/L)
                            ('TEG' or 'the Company')

                    Contract Concluded with Gwynedd Council

                    £1.46m Contract to Build 5,000 tpa Plant

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 signed a contract with Gwynedd Council to construct
a TEG Silo Cage plant at the Ffridd Rasus site in Gwynedd.

The contract is for the supply of a 5,000 tonnes per annum facility including
buildings and other civil works and will process green waste and kitchen waste
collected from households within the Central and Southern areas of Gwynedd. The
value of the contract is £1.46m Following the receipt of an interim order,
construction began on 10th September and the plant is due to be commissioned and
handed over to the client in April 2008.

TEG will be building a 10 Silo Cage plant complete with the necessary ancillary
equipment. The building will house the TEG plant and will also include a waste
receipt facility. External civil engineering works are also included.

Commenting for TEG, Chief Executive Mick Fishwick said

'We are delighted to have concluded the contract with Gwynedd Council to supply
a TEG plant and we look forward to working with the Council. This will be TEG's
sixth plant in the UK and our second in Wales and it is a further endorsement of
the TEG technology.'

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]
Chris Bowman



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.

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.




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