TGM Tellings Gldn

    Tellings Golden Miller Group plc                        

                       Acquisition and proposed disposal                       

The Board of Tellings Golden Miller Group plc (the "Company" or the "Group")
announces that it has agreed to acquire a National Express coach operation from
Arriva Northumbria Limited, a subsidiary of Arriva plc. The business is being
acquired through the Company's wholly owned subsidiary, Classic Coaches
(Continental) Limited. The acquisition comprises 7 coaches and the assignment
of the contract to operate National Express Route numbers 425 between Newcastle
and London, 326 between Newcastle and Cambridge and 032 between Southampton and
London. No other assets or liabilities are being acquired. The consideration
for the acquisition, which is in respect of the vehicles acquired, is
approximately �0.6m payable in cash on completion. The vendor has given
appropriate warranties and indemnities relating to the acquisition and the
Company has indemnified Arriva against liabilities arising following completion
of the acquisition. The acquisition will deliver contracted revenue of
approximately �1.6 million per annum.

The cash consideration will be funded from the Company's existing cash
resources supplemented by third party financing of the vehicles. The
acquisition complements the Company's existing National Express operations and
fits well within the Group's existing operations in the North East.

In addition, the Board has agreed, in principle, the sale of the assets of its
Aircrews business comprising 24 vehicles, free of financing to OFJ Connections
Limited. In addition, drivers, management and administrative staff with limited
exceptions, will be transferred with the assets. Consultation with employees
will begin shortly.

Completion of the transaction is subject to contract expected to be around 31
December 2006. A further announcement will be made at the time the contract is
entered into and conditions precedent have been met.

Enquiries

Stephen Telling Tel: 01344 875353



END

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