Tanfield Group PLC
23 July 2007


23 July 2007


                             THE TANFIELD GROUP PLC

                          ('Tanfield' or 'the Group')

                                 TRADING UPDATE

Tanfield, the leading manufacturer of zero emission electric vehicles and aerial
work platforms, is pleased to provide  the following update on trading in
advance of its interim results for the six months ending 30 June 2007.

Highlights


   ?Trading for the first six months of 2007 has been strong and in line with
    management's expectations


   ?Smith Electric Vehicles has received orders for its new technology zero
    emission electric vehicles from Balfour Beatty, TK Maxx/DHL, Axa and
    Translink


   ?Electric Vehicle order book full for 2007 and until early 2008


   ?Vehicle production capacity increasing from five to 10 units per week in
    2007


   ?Official European launch of electric vehicles scheduled for Q3 2007 in
    Rotterdam with TNT Express


   ?New UpRight distributors appointed in Baltic States, Austria, Malta and
    Saudi Arabia. Negotiations initiated with additional strong potential
    distributors in, South Africa and Middle East


   ?Volume orders for UpRight machines received from customers in USA, UK,
    Germany, Scandinavia and the Baltic States


   ?Cash position ahead of management's expectations


Commenting, Darren Kell, Chief Executive of The Tanfield Group Plc, said:


"Our strategy to develop new technology electric vehicles targeted at major
fleet operators continues to gain significant momentum.


We are developing UpRight into a major force in the aerial work platform
industry, thanks to its unique customer offering of local language, expert
after-sales support through its extensive global dealer network.


The acquisition of Snorkel International will significantly accelerate
Tanfield's development as a global leader in aerial work platform manufacture,
by broadening the product offering, offering bi-directional cross-selling
opportunities, and bringing significant manufacturing capabilities in both the
USA and Asia-Pacific region, allied to global distribution capability.

Our present production capacity continues to increase on schedule, with
controlled expansion in line with the order book growth. We have developed and
nurtured excellent relationships with our supply chain and do not anticipate any
supply constraint issues as we increase machine and vehicle output.


Trading for the first six months of 2007 has been strong and in line with
management's expectations and we are confident of further strong growth both
this year and beyond. The cash position at the end of June 2007 was ahead of our
forecasts and we remain comfortable with market expectations for the year."


Smith Electric Vehicles


The Company continues to make good progress in its core retail and distribution
markets and the Directors are delighted to announce that Tanfield has won orders
for its zero emission electric delivery vehicles from major retailers including
high street fashion retailer TK Maxx, via its logistics provider, DHL Logistics.
This is the third Smith Newton electric truck trial vehicle ordered by DHL to
seed its customers' fleets.


Tanfield is also pleased to announce its first order from a major UK commercial
vehicle rental company, Translink. Translink has ordered two Smith Edison higher
function electric vans, for trials within its rental fleet of over 3,000
commercial vehicles. Other major fleet operators who have placed orders include
construction, engineering and utilities company Balfour Beatty and insurance and
asset management group Axa. Balfour Beatty operates over 7,000 vehicles
worldwide.


Tanfield has also received orders from several other major fleet operators, but
has signed non-disclosure agreements at the request of these clients. As a
result of this strong demand, the Company's vehicle production schedule is full
until early 2008.


The Directors believe that, while urban delivery fleets servicing internet home
shopping and post/parcel distribution remain a key market for zero emission
vehicles, there are significant addressable markets in sectors such as
utilities, construction, Highways and other urban distribution/collection
applications.


The Company is also pleased to announce that it has built and delivered the
first Smith Edison for the Royal Mail, as part of the order for trial vehicles
announced on 28 June 2007. The second part of this order, a 7.5 tonne Smith
Newton electric vehicle, is in build and will be delivered to the Royal Mail
shortly.


The launch of Smith's higher function electric vehicles in mainland Europe is
scheduled for autumn 2007, when the first left-hand drive versions of the Edison
and Newton will be delivered to TNT in the Netherlands. Ongoing negotiations
with major fleet operators in the USA are progressing well.


UpRight Powered Access


UpRight continues to demonstrate strong global sales growth, through its
established independent dealer network and also by winning fleet orders from
independent equipment rental companies.


Volume orders for UpRight machines have been received from customers in the USA,
UK, Germany, Scandinavia and the Baltic states.


Enquiries from independent companies wishing to become UpRight dealers are at an
all-time high and UpRight has appointed new distributors in Central Europe, the
Middle East and Africa. The process of further expanding the distributor network
and strengthening existing dealers, in line with the extended product range from
Snorkel, has been considerably improved by the addition of an experienced
international distributor manager.


Vigo Centre, the Group's 250,000sq ft assembly facility in the UK, is achieving
its current output target of 150 UpRight machines per week and has further
headroom for increased capacity.


In conclusion, the Board of Directors believes that the outlook for the Group as
a whole remains good, with further growth expected in both core divisions. Smith
Electric Vehicles continues to exploit its global first mover status in zero
emission commercial vehicles, while UpRight Powered Access leverages significant
brand equity and its unique distributor network to grow sales.


The Directors expect that the acquisition of Snorkel International will greatly
accelerate Tanfield's development as a major global powered access manufacturer,
by broadening the product portfolio and providing significant machine production
capabilities in North America and the Asia-Pacific region.


For further information:

The Tanfield Group Plc                    Tel: +44(0)845 1557 755
Darren Kell, Chief Executive              dan.jenkins@tanfieldgroup.com
Charles Brooks, Finance Director

Fishburn Hedges                           Tel: +44(0)20 7839 4321
Morgan Bone                               Mob: +44(0) 7767 622 967
James Benjamin                            Mob: +44(0) 7747 113 930
                                          tanfield@fishburn-hedges.co.uk

St. Helen's Capital plc                   Tel: +44(0)20 7628 5582
Ruari McGirr

Cenkos Securities plc                     Tel: +44(0)20 7397 8900
Stephen Keys


                        website: www.tanfieldgroup.co.uk

Notes to editors

The Tanfield Group Plc is the world's leading developer and manufacturer of
road-going commercial electric vehicles and  aerial work platforms. Tanfield is
headquartered in Newcastle with operations in the USA and Japan. It has two main
divisions:

Smith Electric Vehicles, was founded in 1920 and acquired by Tanfield in October
2004. Since its acquisition, Smith is developing into a world leader in new
technology electric vans and trucks with greatly enhanced performance, speed and
range capabilities. This makes them attractive for all fleet operators in large
towns, cities and closed industrial environments. For the first time, these
fleet operators have an economically viable, zero emission alternative to using
diesel vans and trucks. Smith has an unrivalled UK-wide service and support
network, which already maintains over 5,000 vehicles for major fleet operators.
This core element of the business is beginning to fulfil its potential in terms
of addressing the requirements of large urban fleet operators, who want to
reduce their operational costs and more importantly, greatly reduce their carbon
footprint. Smith's airport offering is complemented by two specialist airport
vehicle sub-divisions; Jumbotugs and Norquip.

www.smithelectricvehicles.com

UpRight Powered Access, is firmly established as the UK's biggest manufacturer
of self-propelled aerial work platforms (such as "cherry-pickers", "scissor
lifts", "trailer mounts", etc) and UpRight is globally one of the industry's
strongest aerial lift brands in what is a $7bn market. UpRight has assembly
facilities in the UK and USA, plus a wholly-owned subsidiary in Japan. Products
are sold through a strong global network of over 150 independent, full-service
distributors across Europe, North America, Middle East and Asia-Pacific regions.
Tanfield has been successful in extending the UpRight product range and
achieving significant increases in average weekly order intake, boosted in part
by working at height regulations.

www.upright.com

                                    - ENDS -






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