Result of Placing

TEG Environmental Plc
23 May 2006





For release                     07.00am                         23 May 2006

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

       Canaccord Adams Limited
       Robert Finlay                   Tel: [phone]
       Chris Bowman                    Tel: [phone]

       Peter Binns/ Tarquin Edwards    Tel: [phone]



                             TEG ENVIRONMENTAL PLC

                            ('TEG' or 'the Company')



                   RESULT OF PLACING & OFFER FOR SUBSCRIPTION


Offer for Subscription was over subscribed and the target met in full



TEG Environmental Plc, ('TEG' or 'the Company'), the cutting edge green
technology company, which converts organic wastes into natural organic
fertiliser, is pleased to announce that following the passing of all resolutions
by shareholders at TEG's EGM on 19 May 2006, the Company's Placing and Offer for
Subscription has become unconditional in all respects, subject to the admission
of the New Ordinary Shares ('Placing Shares') to trading on the AIM Market of
London Stock Exchange plc ('Admission'). Application has been made for Admission
of the Placing Shares and it is expected that Admission will become effective
and dealings in the Placing Shares will commence on 23 May 2006. The Placing
Shares, when issued, will rank pari passu, with the Existing Ordinary Shares,
including the right to receive all dividends and other distributions, thereafter
declared, made or paid.


Accordingly, TEG is delighted to announce the successful placing and raising of
approximately £8 million before expenses by way of a Placing of 10,730,000 New
Ordinary Shares and Offer for Subscription of up to 770,000 New Ordinary Shares
at a placing price of 70 pence per New Ordinary Share, by Canaccord Adams
Limited. The Company is pleased to confirm the Offer for Subscription was over
subscribed and the target therefore met in full.


The Company also announces the successful completion of its acquisition of the
Todmorden site near Manchester, which it intends to develop as a Build Own and
Operate project ('BOO') using the Company's Silo Cage composting system.


The proceeds of the fundraising will be used together with a proposed additional
bank facility in order to primarily fund the Todmorden BOO with the balance
remaining allocated to the Clayland's Corner BOO, the upgrade to the Kildare
Plant and the Company's working capital requirements during the development
phase of these opportunities.


Mick Fishwick, Chief Executive of TEG, commented:

'On 26 April 2006, TEG announced its proposed acquisition of the Todmorden site
near Manchester and a placing to raise up to approximately £8 million before
expenses. This is a very exciting opportunity and I am delighted by the very
powerful endorsement we have received from shareholders with regards to the fund
raising. Once the project is complete, TEG will be able to offer a processing
service and gain revenues from gate fees for waste and sales of compost
products,generating long term sustainable revenues continuing the strong growth
of the business'.


'I believe we are making tremendous progress with the business and are
establishing a strong foundation on which we can build further. By doing so, we
intend to continue to strive to maximise shareholder value. 2005 was the
breakthrough year we had expected and as stated in our final results, the Board
expects to achieve further significant growth in 2006. I look forward to the
future with excitement and confidence'.


ENDS


Editor's Notes:


TEG provides an in-vessel composting technology, which is one of the few
approved technologies capable of treating animal by-product waste. Plant
economics are 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






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