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2nd December 2009

The Tanfield Group Plc

("Tanfield")

NEW CONTRACT WIN

Tanfield, the leading manufacturer of commercial electric vehicles and aerial work platforms, is pleased to announce that its trading division, Smith Electric Vehicles, has today received an order from J Sainsbury Plc ("Sainsbury's") for 51 Edison Electric vans.

The vehicles will be deployed in Sainsbury's Online grocery delivery service in London and will make Sainsbury's one of the largest operators of commercial electric vehicles in the UK. The vans will be delivered in the first half of 2010. 

Tanfield's subsidiary, SEV Group Ltd, has also won the fleet management contract, renewable annually, to maintain and service the new vehicles for Sainsbury's. 

Darren Kell, CEO of Tanfield, said: "Sainsbury's is a long-standing customer and one that fully understands the manifold benefits of our zero emission vehicles.

"This order demonstrates how we continue to lead the way in the penetration of the commercial electric vehicle market."

Sainsbury's was an early adopter of Tanfield's commercial electric vehicle technology and has used electric vans in its online shopping delivery fleet since 2006. Sainsbury's remains committed to its target of utilising electric vans for 20% of all online shopping deliveries.

Neil Sachdev, Sainsbury's commercial director, said: "We are absolutely committed to using zero emission vehicles where possible as they help keep inner city air clean. Also, the electricity used to power them generates around 50 per cent less CO2 than diesel vans. 

"This means that the addition of the new vans will reduce our road transport emissions by around 155 tonnes of CO2 each year."

The Mayor of London, Boris Johnson, said: "I am determined to put London at the forefront of the electric vehicle revolution as they become a mainstream choice. This is cracking news from Sainsbury's which will help deliver to Londoners not only their groceries, but all the benefits of going electric such as cleaner air and fewer carbon emissions. It shows that a commitment to this technology, even in leaner times, is good for businesses and great for our environment."

The Edison electric van, produced in collaboration with Ford of Europe, utilises a Ford Transit chassis to house Tanfield's higher function electric vehicle technology. Designed for urban operations, Edison has a restricted top speed of 50mph and a range of up to 100 miles on one battery charge.

For further information:

The Tanfield Group Plc                                   +44 (0) 845 155 7755

Darren Kell, CEO / Charles Brooks, FD

Arbuthnot Securities                                        +44(0)20 7012 2000

Nomad & Broker

Andrew Fairclough / James Steel

Media Enquiries:

Dan Jenkins                                                    +44 (0) 191 461 6842