Placing and Notice of EGM

Tanfield Group PLC
23 October 2006


                               Tanfield Group plc

                         ('Tanfield' or 'the Company')

                             Placing/Notice of EGM


Tanfield Group PLC ('Tanfield' or the 'Company') has conditionally placed up to
£20m (before expenses) through an institutional placing of new ordinary shares
at 40p per share by Daniel Stewart & Co, the Company's nominated adviser and
broker. These shares will rank pari passu with the existing ordinary shares.

The Company has convened an Extraordinary General Meeting for 15 November 2006
at which shareholders will be asked to give the Directors authority to allot up
to 50,000,000 new Ordinary Shares in the Placing. Admission is expected on 16
November 2006.

The Directors will utilise the net proceeds of the Placing as working capital.
This will accelerate the growth in output of Tanfield's Powered Access Division,
bringing it in line with the exceptional growth in order intake. In addition,
the Company is in advanced negotiations with its bankers with a view to
extending the debt facilities available to it by approximately £5 million to
approximately £9m..

The order book for Powered Access continues to exceed expectations, with order
intake consistently hitting £1m or more, every week for the past six weeks. This
is well ahead of current analyst projections for 2007, which forecast average
output of £500,000 per week for the Powered Access Division.

The Directors believe that recent commercial developments and the fund raising
significantly enhance growth prospects for the Group.

The majority of the working capital will be invested in the supply chain, which
will allow Tanfield to capitalise on sourcing components from low cost
countries. Working capital will also support an expansion of the Company's
global network of independent distributors; grow the machine spare parts
business; and expand the UpRight model range.

Projected turnover from the Powered Access Division for 2006 is expected to be
unaffected by these developments.

A circular explaining that the Directors consider that the Placing is in the
best interests of shareholders as a whole and recommending that they vote in
favour of the special resolution to be proposed at the Extraordinary General
Meeting, is being posted to shareholders today.

Enquiries:

Tanfield Group plc
Roy Stanley - Chairman                          Tel: [phone]

Daniel Stewart & Co plc                         Tel: [phone]
Ruari McGirr



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