First Verdia JV Plant

TEG Group (The) PLC
01 April 2008



For release                   7:00 a.m.                       1 April 2008







                           The TEG GROUP PLC (TEG/L)

                            ('TEG' or 'the Company')





             Glendale and TEG Announce First Plant in Joint Venture



                       Verdia Plant Construction Underway







Verdia Horticulture Limited ('Verdia'), the joint venture company established
between Glendale Managed Services Limited ('Glendale') and the TEG Group Plc,
has commenced construction of its first TEG Silo Cage plant at Hillbarton,
Exeter.  The announcement follows confirmation of full planning approval for the
development.



The capacity of the TEG Silo Cage plant will be 14,000 tonnes per annum,
producing approximately 8,000 tonnes per annum of compost.  The compost will be
matured and blended to produce horticultural grade material for sale into the
local horticultural sector.



The waste will be supplied from local authority green waste collections via the
Glendale composting subsidiary Eco Sci, and from private sector contracts for
food waste and food processing waste. Glendale will provide compost product
expertise and knowledge of the horticultural product market, together with
analytical and compost product services.



The development is on a site leased by Glendale and will be a shared facility
with Eco Sci who will carry out green waste composting in an adjacent operation.
  The plant and equipment will be supplied by TEG.  The total cost of the
development will be approximately £2.5m of which approximately £1m will be the
cost of the building development and £1.5m the cost of the plant and equipment.
Funding of the building work is part of the lease arrangement with the overall
site landlord.  Funding of the plant and equipment will be by finance lease
through Barclays Asset Finance.  The site is scheduled to be operational by the
end of Quarter 3 of this year.



Commenting for Glendale, Managing Director Nick Temple-Heald said:

'Our joint venture with TEG is part of Glendale's strategic plan to develop its
diverse suite of green services to Local Authorities and the Commercial sectors.
'



This new facility provides the opportunity to expand our recycling activities
within the rapidly developing UK composting market and also provides the ideal
location for Glendale's Devon based 'EcoSci' green waste recycling operations.'





Commenting for TEG, Chief Executive Mick Fishwick said:

'This is a further significant step in the development of TEG.  Our joint
venture with Glendale offers us the opportunity to both develop a new revenue
stream and also to gain a foothold in the higher value horticultural sector, and
to work with an expert and market leader in that area.  Verdia has an exciting
future and we hope this is the first of many such plants to be developed over
the coming years. '


'The construction of yet another TEG Silo Cage plant is a further endorsement of
our technology and capabilities and we look forward to opening the first TEG
plant in the South West region.'









ENDS



Contact:



The TEG Group Plc                                   Tel: [phone]

Michael Fishwick, Chief Executive



Glendale Managed Services                           Tel: [phone]

Ian Stephenson, Director of Recycling



Adventis Financial PR                               Tel: [phone]

Chris Steele



Canaccord Adams (Nomad)                             Tel : [phone]

Robert Finlay



Editor's Notes:



Verdia

Verdia Horticulture Limited is a joint venture company established by TEG and
Glendale Managed Services Limited, a subsidiary of Parkwood Holdings Plc.  The
joint venture combines the technical expertise of TEG with the horticultural
expertise of Glendale.  Verdia's aim is to open a number of regional composting
facilities designed to manufacture high grade compost products for sale into the
horticultural sector.



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.





Glendale



Glendale is the leading provider of specialist green service solutions and the
largest operating division within Parkwood Holdings plc.



Its portfolio of green services is led by Managing Director, Nick Temple-Heald
and includes:



•         Glendale Countryside - incorporating Civic Trees Ltd

•         Glendale Grounds Management

•         Glendale Recycling - incorporating Verdia Horticulture Ltd

•         Glendale Golf

•         Glendale Horticulture - incorporating Coblands Nurseries Ltd

•         Glendale Environmental



Glendale, formed in 1988, has a strong relationship with clients in both the
public and private sector and operates more than 45 contracts, largely on behalf
of local authorities, the Ministry of Defence and corporate clients.



Glendale is a national company with a local presence. Offices are located across
the UK and its headquarters are at The Coach House, Duxbury Park, Chorley,
Lancashire. Glendale Golf are the management company at Duxbury Park Golf
Course.












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

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