TEG wins GBP 3.78m Next Order

TEG Group (The) PLC 30 April 2008 For release 11:20 a.m. 30 April 2008 The TEG GROUP PLC (TEG) ('TEG' or 'the Company') Greater Manchester PFI Update TEG Secures £3.78m Next Order Further to the contract update reported on 9 January 2008, the TEG Group PLC, the AIM-listed cutting edge green technology company, which converts organic wastes into natural organic fertiliser, confirms it has secured a further Advanced Works Order ('the Order') from its customer Costain, the company retained by the Viridor-Laing consortium to manage the construction projects for the PFI Contract. The purpose of the Order is to allow TEG to proceed with the first scheduled construction projects under the PFI contract. The Order has been placed now as part of a process to ensure there are no delays to the installation programmes. Work will continue to proceed to schedule in advance of Financial Close, which is expected to be concluded in the immediate future. The design work for the plants is largely complete, funded under the Advanced Works Order announced on 9 January 2008. The Order announced today covers the initial procurement requirements for the two TEG Silo Cage plants. The Order is in line with keeping critical facilities on track whilst documentation is completed for Financial Close. This Order will form part of the PFI contract to be awarded under this Financial Close process. TEG expects the overall value of that contract to be in excess of £35m and does not anticipate any change to its scope of supply. Commenting for TEG, Chief Executive Mick Fishwick said: 'This order is a further significant step forward in the development of the Greater Manchester PFI contract and it allows us to maintain the project schedule.' 'It further underlines the commitment all parties have in ensuring the PFI process is completed and key projects are developed on time.' ENDS Contact: The TEG Group Plc Tel: 01772 314100 Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758 Tarquin Edwards Canaccord Adams (Nomad) Tel : 020 7050 6500 Robert Finlay 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. 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
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