Contract Win

Tanfield Group PLC
13 July 2005



                       Agreement related to Airport Tugs

The Directors of Tanfield announce that the Company's subsidiary, Smiths
Electric Vehicles Limited, and Azure Dynamics have reached an agreement to
develop the global market for Airport Tugs and to work together to achieve this
objective.

Under the terms of this agreement Azure commits to an exclusive agreement with
SEV for supply of airport tug drive and control systems for a period of three
years.

Chairman Roy Stanley commented: 'This is an important agreement which puts the
Company in a very strong position to capitalize on a growing and important
market.'


For further information call:

Tanfield Group Plc
Roy Stanley - Chief Executive               01207 521111

Daniel Stewart & Co
Ruari McGirr                                020 7374 6742




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