Waste Contract Gains

TEG Group (The) PLC
06 December 2007



For release                          11:30 am                   6 December 2007





                       The TEG GROUP PLC (ticker: TEG/L)

                            ('TEG' or 'the Company')


                              Waste Contract Gains


   Large Contracts with Major Waste Management Company and Local Authorities


The TEG Group PLC ('TEG' or 'the Company'), the AIM listed cutting edge green
technology company, which converts organic waste into natural organic
fertiliser, announces it has signed two sizeable contracts for the supply of
waste into its facilities at Sherdley Farm, Preston and Todmorden. In addition,
the Company has recently secured further substantial volumes of waste from Local
Authorities for supply into its Sherdley Farm facility.


The first contract is with Veolia Environmental Services ('Veolia'), the leading
waste management company that is part of the global Veolia Group. The contract
is for an initial 17 month term and is for up to 9,000 tonnes per annum of green
and garden waste. The contract is renewable subject to negotiation.


The second contract is for supply of kitchen waste from Oldham Metropolitan
Borough Council. The contract volume is initially 500 tonnes per annum, rising
to 1,000 tonnes per annum during the course of the contract which is for a 3
year term.


In addition to the two contracts, TEG has secured a further 20 tonnes per week
of food waste from other Local Authorities in the North West region (1,000
tonnes per annum equivalent). It is intended that this volume will rise to 50
tonnes per week (2,500 tonnes per annum equivalent) by early 2008. The total
value of the new business for the Preston and Todmorden plants is approximately
£245,000 per annum rising to £350,000 per annum.


Commenting for TEG, Chief Executive Mick Fishwick said

'It is extremely pleasing to have secured this new business that will help
underpin the Preston and Todmorden operations. The level of interest we are
receiving from Local Authorities is growing continuously as they expand their
recycling activities to fulfil Landfill Allowance Trading Scheme ('LATS')
obligations. The intention is that a number of these contracts will migrate to
larger contracts covering co-mingled waste streams and we look forward to
continuing to work with Local Authorities and to assist them in their recycling
needs'.



ENDS


For further information visit: www.theteggroup.plc.uk or enquiries to:



The TEG Group Plc Tel: [phone]

Michael Fishwick, Chief Executive


Adventis Financial PR Tel: [phone]

Tarquin Edwards 07879 458 364


Canaccord Adams (Nomad) Tel : [phone]

Chris Bowman






Editor's Notes:


Landfill Allowance Trading Scheme ('LATS')

The Landfill Allowance Trading Scheme (LATS) introduces significant and
innovative changes in waste policy and practice for the diversion of
biodegradable municipal waste from landfill. It is intended to provide a cost
effective way of enabling England to meet its targets for reducing the
landfilling of biodegradable municipal waste under Article 5(2) of the EC
Landfill Directive. 'LATS targets' is the term used for the statutory targets
for Local Authorities to fulfill their obligations to divert waste from
landfill.


The TEG Group PLC

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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