Contract For New Plan

TEG Group (The) PLC
06 August 2007



For release                     7:00am                    Monday August 6th 2007


                            The TEG GROUP PLC (TEG)
                            ('TEG' or 'the Company')


               TEG Receives Order for £1.46m from Gwynedd Council
             to Build Composting Plant subject to planning approval


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 that it has been chosen as Preferred Bidder by Gwynedd
Council to build an In Vessel Composting ('IVC') plant at the County's Ffridd
Rasus site.  The contract is expected to be signed by mid September subject to
planning permission being approved.  A decision regarding planning is expected
at the beginning of September, when the construction programme will get
underway.

The plant will have a 6,000 tonne per annum capacity and will process green
waste and kitchen waste collected from households within the Central and
Southern areas of Gwynedd.  The total value of the construction project to TEG
will be £1.46m.  It is anticipated that the plant will be completed by April
2008 and handed over to the Council following commissioning and training.


Commenting for TEG, Chief Executive Mick Fishwick said:

'We are very pleased to have received an order from Gwynedd Council and are
delighted that we will be able to progress immediately into the construction of
the facility subject to planning approval.  This will be the second plant built
by TEG in Wales, following on from our plant in Swansea and given the
competitive nature of the tender process, we believe it is another major
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

Cannacord 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