Trading Update

TEG Group (The) PLC
05 June 2007



For release                          7:00 a.m.                     5 June 2007


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

                                 Trading Update


The TEG Group Plc ('TEG' or 'the Company'), the AIM-listed cutting edge green
technology company, which converts organic wastes into natural organic
fertiliser, is pleased to announce that in relation to its Kildare facility it
has received the signed Licence to Occupy from Kildare County Council. This
document accompanies the planning permission document that was received in final
form in October 2006. TEG is now able to commence the refurbishment of the
facility in order to re-open it as an animal by-product processing plant.

The plant will have a 15,000 tonnes per annum capacity and will process green
waste, food and animal by-product waste. A contract for supply of waste and
placement of compost end product has been agreed with a local waste management
company and it is intended that the facility will be operational by quarter 4 of
this year, subject to the normal environmental licensing approval.

The Company also announces it is experiencing slower than anticipated growth in
waste capacity sales at its plant in Perthshire, Scotland where delays in
expanding Local Authority recycling initiatives have contributed to a sluggish
uptake of available capacity. The plant is operating at approximately 65%
capacity but with the appointment of further sales resource, opportunities in
the private sector and the recent announcements of increased funding by the
Scottish Executive for recycling and composting, the Company remains optimistic
that sales will improve steadily over the course of the year.

The Company's pipeline of BOO and Plant Sale projects remains strong and sales
of waste capacity at both the Preston and Todmorden facilities are meeting
expectations.



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.




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