Re Contract

TEG Environmental Plc
03 July 2006




For Release                                                        3 July 2006



                             TEG ENVIRONMENTAL PLC

                 CONTRACT FINALISED WITH BANHAM COMPOST LIMITED



TEG Environmental Plc ('TEG') is pleased to announce it has signed the contract
with Banham Compost Ltd, a subsidiary of Banham Poultry Ltd ('Banham') for the
supply of its plant at Banham's Carleton Rode site, Norfolk. The facility will
consist of two banks of 24 TEG Silo Cages with a nominal capacity of 28,000
tonnes of feed per annum, predominantly processing chicken feathers and other
food industry waste streams. The value of the contract is approximately £1.7m,
all of which is anticipated to be recognised in the 2006 financial year.


TEG will be manufacturing and installing its plant into a Banham facility, with
Banham managing the civil engineering separate to the TEG contract. Planning
approval was gained in April this year and it is intended that both lines will
be installed before the end of 2006.


Commenting for TEG, Chief Executive Mick Fishwick said:

'We are absolutely delighted to be able to conclude this contract with Banham
Compost and to begin installation. It is a further terrific endorsement of TEG's
technology and we look forward to opening the plant later this year. TEG now has
4 plants under development in the UK, in addition to 2 facilities already in
operation, and its facility in Ireland. We are building a truly national
business and with the market continuing its rapid growth, we look forward to
developing more facilities and further rapid expansion'





ENDS


Contact:


TEG Environmental Group Plc
Michael Fishwick, Chief Executive Tel: [phone]



Adventis Financial PR
Peter Binns/ Tarquin Edwards Tel: [phone]
                             Mob: [phone]


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 fertilizes, retains moisture, provides structure
and reduces the incidence of plant disease. TEG's Silo-Cages will be housed in a
self-contained building, are not unsightly and are environmentally friendly.


Potential 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.






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