TGE Tge Marine

RNS Number:2257Q
TEG Environmental Plc
18 August 2005


For release                       7:00am                  18th August 2005


                             TEG Environmental Plc
              #14m Contract in Scotland for Large Composting Plant

TEG Environmental Plc ("TEG" or "The Company"), the leading edge green
technology company which converts organic wastes into natural organic
fertilizer, announces it has won an 11 year contract to acquire the rights to
take over and develop a composting operation at a waste management site in
Perthshire, Scotland. The operation is one of the largest animal by-product
("ABP") composting operations in the UK and, as the only ABP composting
operation in Perthshire, is set to grow considerably.

The Perthshire contract, a build, own and operate composting plant, will
generate immediate revenues in excess of #1 million per annum. It represents
TEG's largest contract gain since it listed on AIM in July 2004.

The contract requires the installation of 56 TEG Silo-Cages for rapid composting
of bio-degradable waste from a broad range of industries, such as organic
sludge, biosolids, food, animal by-products, broiler house and other waste. Teg
will continue to treat the 35,000 tonnes of waste per year currently managed at
the site until the Silo-Cages are installed at which stage the existing process
will be replaced. Customers include Sita UK Ltd, who will deliver organic waste
from its contract with the Perth & Kinross Local Authority. The contract will
commence on 29 August 2005, and TEG will assume operational responsibility from
that date. The TEG Silo Cage plants will be installed shortly after and will be
fully operational by early 2006.

Commenting on the contract win in Scotland, Mick Fishwick, TEG's Chief
Executive, said: 

"This contract will have a major impact on TEG's annual
turnover, cashflow and its financial position. It provides revenues from 1
September and the opportunity for TEG to install and operate its plant. The TEG
technology was chosen because of its high throughput, its robust construction
and the quality of its compost product. It will be installed to enhance the
operation and will ensure it remains compliant with all legislation. The
existing operator is also a very large farming business and uses the compost
product, which brings the major advantage of an immediate outlet for our
compost. No difficulties are anticipated on the Perthshire site since it is an
established, well run operation with planning permission and a waste management
licence in place."

In June, TEG successfully gained ABP positive release approval from the State
Veterinary Service and this is expected to become a full approval in August
2005. This approval will enable TEG to build and develop plants across the UK.
In July TEG secured an order, subject to planning consent, from Banham Compost
Ltd, a subsidiary of Banham Poultry Ltd, for the purchase of a #2m plant.

The Company next intends to develop its site at Sherdley Farm, near Preston, for
which it has planning permission and a waste management licence.

TEG has announced it will be raising funds for the Perthshire contract by a
share offering due for completion in early September 2005.

ENDS

For further information please contact:

TEG Environmental Plc
Mick Fishwick, Chief Executive        01772 422220

Binns & Co PR Ltd
Peter Binns                           020 7786 9600
Tarquin Edwards                       020 7153 1483

Editor's Notes:

TEG provides an in-vessel composter, 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 restricts weed growth. 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.






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

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