Tanfield Group PLC

Dairy Crest Contract Win

Tanfield Group PLC
05 October 2005

                               Tanfield Group Plc

                            Dairy Crest Contract Win

Tanfield Group Plc is pleased to announce that its subsidiary Smith Electric
Vehicles ('SEV') has today signed a letter of intent with Dairy Crest for the
replacement of a number of their delivery vehicle fleet with their new
commercial electric vehicle, 'Faraday' which will have its commercial launch
today and be available to the market from Thursday 6th October 2005.

As part of the recently announced proposed contract with Dairy Crest, SEV will
be responsible for the replacement of up to 800 of their delivery vehicles, over
the next 3 years. This will be a mix of standard transit type vehicles and where
it is commercially appropriate the new 'Faraday'.

This vehicle is the first in a series of a new generation of vehicles developed
by SEV to address the issue of inner city deliveries and other applications,
such as airports, where the protection of the environment is important. The next
vehicle in the series, an airport tug, is expected to be launched later this
month. The next electric commercial delivery vehicle is expected to be launched
early next year.

For further information call;

Tanfield Group Plc
Roy Stanley - Chief Executive - 01207 521111

Daniel Stewart & Company Plc
Ruari McGirr - 020 7776 6550

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