Tanfield Group PLC
25 September 2007


25 September 2007

                             THE TANFIELD GROUP PLC
                          ("TANFIELD" OR THE "GROUP")

                                INTERIM RESULTS

                       FOR THE SIX MONTHS TO 30 JUNE 2007

The Tanfield Group Plc, the leading manufacturer of zero emission electric
vehicles and aerial work platforms, is pleased to announce its unaudited interim
results for the six month period to 30 June 2007.


Highlights


   ? Strong financial performance across the Group:


        ?Turnover increased 120% to £36.8m (2006: £16.5m)
        ?Pre tax profit increased 209% to £5.4m (2006: £1.7m)
        ?EBIT 14.3% of sales (2006: 13.3%)
        ?Net cash at 30 June of £4.7m - supporting further growth
        ?Post Snorkel deal cash balance of £42m


   ? Production lines for electric vehicles now installed and fully
    operational at Vigo, UK - on track to achieve a capacity of 30 new
    technology electric vehicles per week at the beginning of Q1 2008


   ? Volume order from major fleet operator for 50+ electric vehicles -
    customer requirements for 2008 already exceeds 600 vehicles


   ? Partnership with Ford for electric vehicles for US market - US
    production to commence in December 2007


   ? The Board expects US production curve for electric vehicles in 2009 to
    be steeper than the UK


   ? Completion of first stage of Snorkel integration - already achieved £20m
    cross-selling to existing EMEA customers


   ? Third crane line for UpRight installed at Vigo, UK, further increasing
    output to 200 units per week capacity in September 2007


   ? Shipped first production electric vehicle fitted with lithium-ion
    phosphate battery pack - increasing addressable market


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


"Once again, Tanfield has delivered excellent results and achieved high growth
in both core divisions of Powered Access and Zero Emission Vehicles.


The integration of Snorkel International has progressed very smoothly and we can
now focus on growing global sales, while achieving significant cost savings
through supply chain synergies with our established powered access operation,
UpRight.


We have strengthened the management team, grown the forward order book and
worked extensively with our supply chain to gear up for increased volume, in
both Powered Access and Zero Emission Vehicles. The foundations are now in place
for further strong, organic growth in the second half of 2007 and beyond."


                        website: www.tanfieldgroup.co.uk

For further information:

The Tanfield Group Plc            Tel: +44(0)20 7839 4321 on 25 September only
Darren Kell, Chief Executive      Tel: +44(0)845 1557 755 thereafter
Charles Brooks, Finance Director

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

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

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



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 both the North America and EMEA
regions. It has two main divisions:


Smith Electric Vehicles, was founded in 1920 and acquired by Tanfield in October
2004. Following 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 environment. For the first time, these fleet
operators have economically viable, zero emission alternatives 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


Powered Access, contains two of the world's most established aerial work
platform brands, UpRight Powered Access and Snorkel International. UpRight is
firmly established as the UK's biggest manufacturer of self-propelled aerial
work platforms (also known as "cherry-pickers", "mobile elevating work
platforms", "aerial lifts", etc). UpRight has assembly facilities in the UK and
USA, with products sold through a strong network of over 180 independent,
full-service distributors across Europe, the Middle East and Asia-Pacific
regions. Snorkel, acquired in July 2007, has significant manufacturing
capabilities along with strong sales and distribution, in the USA and
Australasia. Tanfield has been successful in extending its powered access
product range and is now one of only three "full line" aerial lift manufacturers
to have a significant assembly footprint in both the North America and EMEA
regions, in what is a $7bn global market.

www.upright.com / www.snorkelusa.com







                             THE TANFIELD GROUP PLC

                              CHAIRMAN'S STATEMENT


I am pleased to report another successful six months for the Group. We have
delivered an excellent performance across all of our key business measures
including turnover and profit, whilst continuing to invest to support our future
expansion.


The Tanfield Group Plc operates in two high growth markets - aerial work
platforms (also known as powered access, aerial lifts, cherry pickers, etc) and
road-going commercial electric vehicles.


Following the acquisition of Snorkel Holdings LLC ('Snorkel') for £50m,
announced on 28 June 2007, the Group's Powered Access division is now one of
only three "full line" manufacturers in the world that has a significant
manufacturing footprint in both the USA and EMEA territories.


The aerial work platforms are sold both direct and via a global network of over
180 independent distributors, who can provide a high level of local service and
product support. The machines are deployed largely in repair and maintenance
applications and in non-residential construction.


Tanfield's zero emission vehicle brand Smith Electric Vehicles, is the world's
largest manufacturer of road-going commercial electric vehicles. The Smith
Newton is the world's largest road-going electric truck, while the Smith Edison
is the world's first van-sized, high performance electric vehicle.


The vehicles have a range of up to 150 miles on one battery charge, a top speed
of 50mph and similar payload capabilities to the equivalent diesel-powered
vehicles. Designed specifically for intra-city operations, key markets include
logistics; retail distribution; mail/parcel delivery; and utilities.


Financial Performance


The first six months to 30 June 2007 once again demonstrated a high level of
profitable growth. Turnover rose to £36.8m, an increase of 120% against the
first half of 2006 and close to the full year figure for 2006, of £40.9m.
Pre-tax profit further increased to £5.4m, up more than 200% compared to the
first half of 2006 and more than 50% higher than the £3.5m achieved in the whole
of 2006.


EBIT reached 14.3% of sales (13.3% for full year 2006) demonstrating our
continued control of margins while delivering strong growth. Similar financial
control continues to be exercised with regard to working capital. Net cash at 30
June 2007 was £4.7m providing funds supporting further growth in line with our
expectations for the second half of 2007.


It was particularly pleasing to see strong organic growth in both of the Group's
key divisions - Powered Access and Zero Emission Vehicles, compared to the
previous six months at the end of 2006. The acquisition of Snorkel was completed
after the close of H1 2007.


The Powered Access Division increased turnover 511% to £19.1m (2006: £3.1m),
with profit margins materially improving to 18%.


Turnover in the Zero Emission Vehicles Division rose 47% to £13.1m (2006:
£8.9m), with the profit margins improving to 15.8% (2006: 13.6%).


Working capital remains in line with expectations, at 36% of annual sales (42%
at 31 Dec 06) reflecting both the Group's steep output growth curve and the
payment terms in advance of delivery of goods from our low-cost suppliers,
particularly in the Far East.


The pressure on working capital will reduce in the second half of 2007. Although
the absolute quarter-to-quarter growth forecast remains high, the ratio of
incremental sales to delivered sales does reduce. This means that cash
generation will fund a higher proportion of the working capital increase
required to support growth in the second half of the year.


41% of Powered Access payments in June 07 were payments in advance of receipt to
low cost base suppliers (4% at June 2006). The cost savings more than justify
the cash cost. For example, in re-introducing the UpRight AB46 boom lift,
components from China are 55% of the cost of the previous US supply base,
whereas the cash cost is circa 2%.


Delivering Our Strategy


The first half of 2007 saw the execution of a new strategy for Zero Emission
Vehicles, with the Division moving away from small scale production towards a
streamlined, efficient volume assembly line operation at our UK facility, Vigo
Centre. A large amount of time and resource went into understanding and
implementing this new culture and methodology, while also ensuring that the
supply chain was developed and demonstrated an ability to build in the
additional required capacity.


I am delighted to say that this Division is now fully geared up for volume
production in 2008. It is also pleasing to note that during this period, the
Group has continued to successfully develop both new and existing markets for
its unique electric vehicles.


The third 90 metre crane line at Vigo Centre is installed and fully operational,
providing enough headroom to increase output of UpRight Powered Access products
to 200 units per week.


The growth plan for Powered Access of £250,000 per week in Q1 of 2007,
increasing to £750,000 per week in Q2, was exceeded. This provides an excellent
platform for the Division to deliver its further planned sales growth in the
third and fourth quarters of this year.


Snorkel Acquisition and £115m Placing


On 28 June 2007, we announced the proposed acquisition of Snorkel Holdings LLC
and the proposed placing to raise £115 million. These were both successfully
completed on 1 August 2007. Tanfield acquired the entire share capital of
Snorkel for approximately £50.0m and assumed approximately £12.5m of debt,
leaving the Group debt free.


Snorkel is a worldwide supplier of high quality industrial aerial work
platforms. The products have a wide range of working at height applications and
are supported by a comprehensive after-sales network.


Snorkel has significant manufacturing capabilities, allied to strong sales and
distribution in the USA and Australasia. The Director's believe that Snorkel's
product range, which is focused on medium to large articulated and telescopic
booms, is proving to be an excellent complementary fit with the Group's existing
UpRight product suite, which has a particularly strong small to medium sized
lift offering. This means Tanfield is now one of only three "full line" aerial
lift manufacturers to have a significant assembly footprint in both the North
America and EMEA regions, in what is a $7bn global market.


People


As a high growth company and to help to service the growing demand for our
products, we are investing in additional staff and strengthening the management
team further.


Key appointments at UpRight Powered Access during the period include Richard
Tindale as Sales & Marketing Director and Martin Connolly as International Sales
Manager.


Richard Tindale worked for UpRight during its initial growth phase in Europe
during the 1990s and has worked in the industry for over 20 years. Martin
Connolly's principal role is to continue to develop UpRight's distributor
network, and we are already noticing a step change. In addition to the
augmentation of the dealer network we have also continued the successful
strategy of replacing and upgrading dealers in underperforming territories,
providing the Division with stronger representation and better sales channels.
The increased scale and credibility of the enlarged powered access division is
breeding further success as well-established dealers and distributors are
attracted to our brands and seek out opportunities to represent us.


In the Zero Emission Vehicles Division, we have appointed Doug MacAndrew as
Technical Director. Doug joins us from McLaren and has a wealth of experience in
automotive engineering. Doug has directed the transformation in Smith into
volume assembly and has also spearheaded the project to integrate lithium-ion
phosphate battery packs into our new technology electric vehicles.


The recent acquisition of Snorkel International also brings added experience and
expertise to the global management team; in particular Frank Scarborough,
President of Snorkel, who has a superb track record in developing global sales
for aerial work platforms.


Management continues its ongoing review of Group activities to ensure we
maintain focus on our core business.


Board Changes


We also welcome Colin Billiet as Non-Executive Director, who adds another
dimension to the Board. Colin was previously Chief Executive of filtration
product manufacturer Domnick Hunter Group plc (1997 - 2006). He has vast
experience in developing a high growth, profitable, global manufacturing
operation.


On 1st January 2008, I will step down as Executive Chairman, but will remain
Group Chairman in a non-executive capacity. The move to Non-Executive Director
will allow me to concentrate on some of my other private business interests.
However, as the founder of Tanfield, I remain dedicated to the Company and will
continue to play a very active role in its future development.


Outlook


This has been another transformational period for the Group and I thank all of
our people for their sterling efforts over the past six months. I would also
like to welcome those who joined the business during this period, including the
people from Snorkel International in the USA, Australia, New Zealand and Europe,
who officially became part of Tanfield in August 2007.


Powered Access continues to make headway into new territories through the
growing distributor network and the increasing interest from rental companies in
our expanded and improved product range. Zero Emission Vehicles is now ready for
volume production and the level of interest from urban fleet operators continues
to be extremely high.


We maintained or improved margins during another period of sales/production
ramp-up and our cash position remains strong.


The 66% turnover growth achieved against H2 2006 was entirely organic and the
development of Vigo Centre during H1 2007 provides a springboard from which
output and sales can further increase, this year and beyond.


Roy Stanley
Chairman
The Tanfield Group Plc





                            CHIEF EXECUTIVE'S REVIEW


Smith Electric Vehicles


Tanfield built and shipped 60 vehicles during the first half of 2007, in line
with internal targets, and the forward order book remains extremely healthy. As
of September 2007, the order book to the end of the calendar year stood at
£6.1m. As outlined below, developments to the production line will enable us to
supply a further 200 vehicles in the second half of 2007.


Feedback from customers who have purchased seed vehicles remains extremely
positive. We are now allocating volumes to major fleet operators, in line with
our build capacity and their fleet replacement schedules. Customer requirements
for 2008 are already exceeding 600 electric vehicles.


In September 2007, the Group completed the installation at Vigo Centre of three
new assembly lines for the Edison van, which is now moving to volume production.
Current capacity for Edison is 3 vehicles per week. Output will increase to 6
per week by October 2007 and 18 per week by December 2007, providing a capacity
for 900 vehicles per annum in 2008.


The production process for the Smith Newton truck is now fully prepared for
volume assembly. Current build capacity for Newton is 1 vehicle per day.
Tanfield has increased the direct workforce employed on Newton by 150%, to grow
output to 2 vehicles per day by the end of 2007, providing a capacity for 500
vehicles per annum in 2008.


This will give us the capability to build 28 vehicles per week by December 2007,
in line with our stated aim to achieve capacity of 30 new technology electric
vehicles per week at the beginning of Q1 2008.


Production of US-specific vehicles for North America will commence in the USA in
December 2007. At the request of Ford, the Group will become the first company
in the world to introduce the Ford Transit to the US market, using its body
shell for our Smith Edison model.


Using the Transit body shell will further differentiate Smith Electric Vehicles
from other commercial diesel vehicle marques already available in North America,
but it is not so different as to appear alien. It gives us instant access to the
benefits of hundreds of millions of dollars invested in vehicle chassis and cab
design; while we have also developed a significant level of expertise in
integrating the Transit body shell with our electric drive train.


Entering the USA with Transit further strengthens our relationship with Ford,
which has already instructed its entire UK dealer network to direct all customer
requests for electric vehicles to Tanfield.


Initially, vehicles will be assembled at the Group's existing facility in
Fresno, California. Our strategy will mirror that of the development of Vigo
Centre, with limited output in 2008 to establish the market, the production
processes and the localised supply chain. However, we expect the US production
curve in 2009 to be even steeper than that of our UK facility.


In September 2007, the Company built and shipped the first Smith Electric
Vehicles production model fitted with a lithium-ion phosphate battery pack.
Lithium-ion phosphate is a highly stable platform which provides an energy
density either equal or greater to the current battery technologies utilised in
both the Smith Newton truck and Smith Edison van. Moreover, lithium-ion
phosphate batteries can be packaged in much smaller quantities, providing better
chassis weight distribution on both vehicle platforms and improved cubic volume
carrying capacity for the Edison marque.


Our initial prototype and validation tests of Lithium-ion phosphate have
indicated that it is a very robust battery, offering a longer lifespan; with a
significantly shorter recharge time. It also does not require the heat-charging
needed by the current battery technologies to maintain operating efficiency.


The Group has negotiated supply agreements with 4 Lithium-ion battery pack
manufacturers in North America, the Far East and Northern Europe/Scandinavia and
is satisfied that there is more than sufficient supply chain capability to meet
our Edison and Newton production requirements for 2008.


Powered Access


The integration of the customer-facing operations of Snorkel International is
now complete. We are on schedule to deliver substantial cost synergies through
ongoing supply chain rationalisation.


The Company is already realising the cross-selling opportunities presented by
pushing the established UpRight products into the Snorkel customer base and vice
versa - the Group has already achieved £20m of cross-selling to existing EMEA
customers. A leading second-tier US rental company and established Snorkel
customer, has already ordered 150 units from the UpRight electric lift range.
During August, Snorkel Australasia set a new record for monthly sales, with an
order for 200 scissor lifts and 30 boom lifts.


Snorkel has appointed two new distributors in the USA (Pennsylvania and
Missouri) and two in Latin America (Nicaragua, Mexico). The US market forward
order book for the remainder of the calendar year at Snorkel is at its highest
level for over 5 years, rising from US$18.5m at the end of June 2007, to
US$26.7m as of 20th September 2007. The order book, to the end of the calendar
year, for UpRight Powered Access equipment produced at Vigo Centre, stands at
£25.9m as of 20th September 2007.


In order to fulfil the strong appetite from smaller rental companies and end
users in the USA, Tanfield is opening an additional 50,000sq ft (4,500sq m) of
assembly floor space at Snorkel's Kansas (USA) facilities. This is part of a
modular plan to add up to 200,000sq ft of manufacturing footprint at Snorkel,
over the next 12 months.


Going forward, Snorkel will be the Group's lead Powered Access brand in the
Americas and Australasia. In these markets, key machines from the Group's
established UpRight range will be re-badged and sold as Snorkel products. These
additions to the Snorkel range will be wholly manufactured in Kansas, with the
first products expected to be shipped in Q4 2007. This will free up our facility
in Fresno, California, to concentrate on assembly of Smith Electric Vehicles and
"static" access platforms such as trailer mounted booms and push-around lifts.


Snorkel's already strong management team and sales force will be augmented with
minor tactical appointments and a wider recruitment drive is underway to
facilitate the ramp-up in US machine assembly.


Demand for UpRight products will see output capacity at Vigo Centre further
increased by 33%, from 150 machines per week to 200 per week. This will be
achieved by increasing throughput on the third 90 metre crane line, installed
earlier in 2007.


UpRight will be the Group's lead Powered Access brand in Europe, the Middle
East, Africa and part of Asia. Within these markets, key machines from the
Snorkel range will be sold as UpRight products, with certain lines to be
manufactured at Vigo Centre in the UK, the Group's 250,000sq ft (23,000sq m)
global headquarters.


In early September 2007, over 300 UpRight distributors, dealers, equipment
rental companies and interested parties attended a three-day sales conference in
the UK to examine both the established UpRight product portfolio and the
products integrated from the Snorkel range.


The Group sold 537 UpRight machines from this event, to the value of £20m, to
existing and new independent distributors, appointed either at the conference,
or shortly afterwards. These sales consist almost entirely of the new, US and
New Zealand built, mid-range and large booms and scissor lifts integrated from
the Snorkel portfolio. The average selling price of this newly added Snorkel
equipment is significantly higher than that of the current UpRight portfolio.


Market Outlook


1. Powered Access


The global market for aerial work platforms remains extremely robust. The top 20
aerial work platform manufacturers alone achieved sales of US$6.9bn in 2006; not
including telehandlers (source: Access 20 study carried out by Access
International magazine, April 2007) and 2007 volumes will have increased
significantly.


Legislation continues to drive growth in the EU region, with the Working at
Height regulations, introduced in 2005, still having a considerable impact on
sales and market demand. UpRight has a well-regarded and established range of
low cost, entry-level machines, such as trailer-mounted platforms, push-around
lifts and small personnel lifts. These machines are usually the first bought or
hired by contractors or other end users who are moving away from ladders or
scaffolding and into powered access. We are also seeing anecdotal evidence from
our distributor network that customers who took their first entry level machines
6 to 12 months ago and are now familiar with the concept are returning to us for
larger and more sophisticated aerial work platforms. In addition we are
witnessing significant demand from the replacement market - the large installed
base of both UpRight and Snorkel is increasingly more aged, and customers are
replacing the equipment with product they know, product they understand and
product that has served them well.


Machines assimilated following the acquisition of Snorkel International, allied
to the UpRight portfolio, provide Tanfield with a full line of powered access
products. This is particularly attractive to larger scale independent
distributors of construction equipment or aerial work platforms. Up to now,
UpRight distributors have had to dual source in order to provide a full range in
their territory and historically some distributors had moved away from UpRight
in order to single source a full line from another manufacturer.


The complete range also presents new opportunities in the rental sector. Over
100 rental companies attended the UpRight 2007 Conference in September and
initial feedback confirms that the door is open to Tanfield to tender for fleet
orders. We are carefully examining this opportunity and will only enter the
market for volume sales into the major European rental companies if we deem it
to be commercially viable and sustainable.


All the major rental companies are predicting further significant growth during
the remainder of 2007 and into 2008, particularly in markets of Germany; Spain;
the Middle East; and Russia and the Baltic States.


Non-Residential Construction accounts for over 20% of all our Powered Access
sales, while Residential Construction accounts for less than 1% of total sales.
The main product used in residential construction is the telehandler, known in
North America as the rough terrain fork lift truck. This is a complementary
product to aerial work platforms and certain of the Group's competitors in
Powered Access also manufacture telehandlers. Tanfield, however, does not
manufacture telehandlers and our exposure to the residential market is therefore
very limited.


While there has been a reported softening in residential construction, both in
the US and Europe, this will have little impact on Tanfield's Powered Access
Division. Evidence from the UpRight distributor network indicates that around
75% of total sales are to the Repair & Maintenance sector. In the UK, Government
figures showed that R&M accounts for 44% of all construction equipment spend.


2. Zero Emission Vehicles


In the UK, growth in van sales is outstripping that of any other vehicle type.
UK Government figures show that light van traffic increased by 9 per cent in Q2
2007, the highest increase of any vehicle type. Light vans accounted for 13 per
cent of all motor vehicle traffic; goods vehicles 6 per cent; cars 79 per cent;
and other vehicles 2 per cent (Source: National Statistics on Traffic in Great
Britain, 31.08.07).


Government research also found that rigid light goods vehicles (LGVs) - such as
the Smith Newton - are the most common goods vehicle over 3.5t, accounting for
39% of "freight miles" or 11.3bn vehicle km in 2006. Light van traffic has risen
by 39% over the 10 year period 1996-2006; the highest growth rate of any vehicle
type. 7% of all UK traffic is in London, which has 13% of the population
(Source: Road Statistics 2006: Traffic, Speeds & Congestion) and we anticipate
that London will remain the principal market for Smith Electric Vehicles during
the rest of 2007 and into 2008.


The major market drivers for Smith's Edison vans and Newton trucks remain the
economic benefit presented by the whole life cost savings of electric vehicles,
along with growing governmental awareness for energy security and reduced
reliance on foreign oil imports.

Environmental market drivers remain carbon emissions, air pollution and noise
pollution. These are increasingly motivating legislative change in favour of
electric vehicles, such as the London Congestion Charge and Low Emission Zone.
10 other urban UK regions are also introducing road pricing; Greater Manchester
has already voted for a C-Charge, with Durham, the West Midlands, Tyne and Wear,
Shrewsbury, Cambridgeshire and Bristol all still in the planning stages.

Outside of the UK, Singapore, Stockholm and Oslo already operate congestion
charging schemes and many more cities will follow globally. China is introducing
a C-Charge in downtown Shenzhen; while in the USA, the Federal Government has
awarded grants of US$350m to New York for a trial scheme in Manhattan and
US$180m for a pilot in San Francisco, around the Golden Gate Bridge. Washington
DC is also considering introducing a similar trial.


Current Trading & Prospects


Once again, Tanfield has delivered excellent resuls and achieved high growth in
both core divisions of Powered Access and Zero Emission Vehicles.


The integration of Snorkel International has progressed very smoothly and at
this early stage we are already demonstrating the cross-selling opportunity,
with further global sales growth possible. The Snorkel integration will now
target significant cost savings through supply chain synergies with our
established powered access operation, UpRight. We have strengthened the
management team, grown the forward order book and worked extensively with our
supply chain to gear up for increased volume, in both Powered Access and Zero
Emission Vehicles.


The outlook for both key divisions remains extremely healthy. The Powered Access
Division, significantly strengthened by the acquisition of Snorkel
International, is poised for a new phase of sales growth, the profitability of
which will be underpinned by further cost savings from production synergies. Our
Zero Emission Vehicles Division remains a market leader, providing unique
products that are attractive to major fleet operators in the UK, USA and
mainland Europe. The financial benefits and environmental and energy security
issues that drive demand are gaining worldwide momentum and we anticipate
further legislation that will positively discriminate for electric vehicles in
all key markets.


The foundations are now in place for further strong oprganic growth in the
second half of 2007 and beyond.


Darren Kell
Chief Executive
The Tanfield Group Plc



Tanfield Group PLC

Consolidated Income Statement
For the six months ending 30th June 2007
                                          Unaudited     Unaudited      Audited
                                           6 months      6 months     Year ended
                                           to 30th       to 30th          31
                                          June 2007     June 2006      December
                                                                         2006
                                            £000's        £000's        £000's

Revenue                                     36,826        16,494        40,913

Other operating income                           -             -             -
Changes in
inventories of
finished goods
and WIP                                        257         2,593         1,222
Raw materials
and
consumables
used                                       (18,291)      (10,184)      (20,275)
Reversal of previously impaired assets           -             -             -
Staff costs                                 (8,563)       (5,385)      (11,290)
Depreciation
and
amortisation
expense                                       (827)          173           816
Other
operating
expenses                                    (4,135)       (1,622)       (5,946)
Restructuring
costs                                            -          (211)       (1,877)
                                            --------      --------      --------

Profit from
operations                                   5,267         1,858         3,563

Finance costs                                   91          (126)         (105)
                                            --------      --------      --------

Net Proft for
Year                                         5,358         1,732         3,458

Income tax
expense                                     (1,500)         (485)         (846)
                                            --------      --------      --------

Profit for the
year from
continuing
operations                                   3,858         1,247         2,612

Discontinued operations
Loss for
period from
discontinued
operations                                       -             -          (108)

Net profit for
the year                                     3,858         1,247         2,504
                                            --------      --------      --------

Earnings per share
From continuing operations
Basic                                         1.32    p     0.80   p      1.10   p
Diluted                                       1.26    p     0.78   p      1.03   p

From continuing and discontinued
operations

Basic                                         1.32    p     0.80   p      1.05   p

Diluted                                       1.26    p     0.78   p      0.99   p



Tanfield Group PLC

Consolidated Balance Sheet
As at 30th June 2007                     Unaudited      Unaudited        Audited
                                         30 Jun 07      30 Jun 06      31 Dec 06
                                            £000's         £000's         £000's
ASSETS

Non Current Assets
Property, Plant and Equipment              4,389          4,113          3,734
Goodwill                                   5,143          5,143          5,143
Intangible Assets                          7,417          4,183          5,792
                                          --------       --------       --------
                                          16,949         13,440         14,669
                                          --------       --------       --------
Current Assets
Inventories                               21,936         14,307         14,158
Trade and Other Receivables               23,568          8,191         13,833
Investments                                   94              -             94
Cash and Cash Equivalents                  4,938            595         13,605
                                          --------       --------       --------
                                          50,536         23,092         41,690
                                          --------       --------       --------
                                          --------       --------       --------
TOTAL ASSETS                              67,485         36,532         56,359
                                          ========       ========       ========
LIABILITIES
Current liabilities
Trade and Other Payables                  13,373          7,957          6,801
Tax Liabilities                            2,678            784          1,178
Obligations Under Finance Leases             402            366            421
Bank Loans and Overdrafts                    203            695            163
Other Creditors                            1,532          1,432          2,221
Provisions                                     -              -              -
                                          --------       --------       --------
                                          18,188         11,234         10,784
                                          --------       --------       --------
Non Current Liabilities
Bank Loans                                   931          1,022            948
Other Creditors                              288            198            310
Deferred Tax Liability                        19             45             19
Obligations Under Finance Leases             384            653            549
Convertible Loan Notes                         -             69             69
Provisions                                   262            615            262
                                          --------       --------       --------
                                           1,884          2,602          2,157
                                          --------       --------       --------
                                          --------       --------       --------
TOTAL LIABILITIES                         20,072         13,836         12,941
                                          --------       --------       --------

Equity
Share Capital                              2,930          2,421          2,921
Share Premium Account                     29,646         10,690         29,578
Share option reserve                         255            308            255
Loan Stock Equity Reserve                      -              6              6
Merger Reserve                             1,534          1,534          1,534
Translation reserve                           67              -              0
Capital Reduction Reserve                  7,228          7,228          7,228
Profit And Loss Account                    5,754            509          1,896
                                          --------       --------       --------
Total Equity                              47,413         22,696         43,418
                                          --------       --------       --------
                                          --------       --------       --------
Total Equity & Liabilities                67,485         36,532         56,358
                                          ========       ========       ========
                                               0              0              0



Tanfield Group Plc

Consolidated Cash Flow Statement

For the six months ending 30th June 2007

                                          6 months     6 months      Year ended
                                           to 30th      to 30th         31st
                                           June07       June06        December
                                                                        2006
                                    Note   £000's       £000's         £000's

Operating Activities
Profit before
tax and
interest
expense                                     5,267        1,858           3,455
Depreciation
of property,
plant and
equipment                                     437          450             825
Write off of
negative
goodwill                                        -         (860)         (2,130)
Impairment of property, plant and               
equipment                                       -            -               -
Amortisation
of intangible
fixed assets                                  390          238             539
(Profit)/Loss
on disposal of
fixed assets                                    -            -              (7)
(Increase)/decrease in
debtors                                    (9,657)      (1,487)         (7,031)
(Decrease)/Increase in
creditors                                   6,539        1,957           1,708
(Decrease)/Increase in
provisions                                   (701)         (46)           (322)
(Increase)/decrease in
inventories                                (7,767)      (4,434)         (4,285)
Cash used in
operations                            6    (5,492)      (2,324)         (7,248)
Interest paid                                 (80)        (126)           (208)
Tax paid                                       (0)           -               -
                                           --------      -------        --------

Net Cash from
Operating
activities                                 (5,572)      (2,450)         (7,456)
                                           --------      -------        --------

Investing Activities
Acquisitions                                    -       (6,523)         (6,851)
Purchase of
property,
plant and
equipment                                  (1,090)        (548)           (503)
Proceeds from
sale of
property,
plant and
equipment                                       -            -             150
Purchase of
investments                                     -            -             (94)
Purchase of
intangible
fixed assets                               (2,015)           -            (312)
Interest
received                                      171            -              34
                                           --------      -------        --------

Net cash used
in investing
activities                                 (2,935)      (7,071)         (7,576)
                                           --------      -------        --------

Financing Activities
Issue of
ordinary share
capital                                         1        9,696          29,055
Increase in
bank loans and
other
borrowings                                     52            -               -
Repayment of
bank loans                                      -         (331)           (870)
Capital
element of
finance leases                               (183)        (335)           (567)
                                           --------      -------        --------
Net cash used
in financing                                 (130)       9,030          27,618
                                           --------      -------        --------

Net
Increase/(Decrease) in Cash
and Cash
Equivalents                                (8,637)        (491)         12,586

Cash and cash
Equivalents at
beginning of
Year                                       13,546          960             960
                                           --------      -------        --------
Cash and Cash
equivalents at
end of the
year                                        4,909          469          13,546
                                           ========      =======        ========


Tanfield Group PLC

Consolidated Statement of Changes in Equity
For the six month period ended 30th June 07

                                      Attributable to equity holders of the company

                         Share    Share     Share    Capital     Loan    Merger  Translation Profit and      Total
                       capital   Option   Premium  Reduction    Stock   Reserve      reserve       Loss     Equity
                                Reserve              Reserve  Reserve                           Account
                        £000's   £000's    £000's     £000's   £000's    £000's       £000's     £000's     £000's

Balance at 1
January 2007             2,921      255    29,578      7,228        6     1,534            -      1,896     43,418
- prior period 
adjustments                                                                                           -          -
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------
- as restated            2,921      255    29,578      7,228        6     1,534            -      1,896     43,418

Exercise of
share options                1        -         -          -        -         -                       -          1
Net gains/(losses) 
not recognised in 
the income
statement
Issue of new 
share capital                -        -         -          -        -         -                       -          -
Capital Reduction            -        -         -          -        -                                 -          -
Conversion of
convertible
loan notes                   8        -        68          -       (6)        -                       -         70
Re Translation                                                                            67          -         67
of Shares issued                                                                          
for consideration            -        -         -          -        -         -                       -          -
Net profit for
the year                     -        -         -          -        -         -                   3,858      3,858
Dividends
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------
Balance at 30
June 2007                2,930      255    29,646      7,228        -     1,534           67      5,754     47,413
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------


For the six month period ended 30th June 2006

                                      Attributable to equity holders of the company

                         Share    Share     Share    Capital     Loan    Merger  Translation Profit and      Total
                       capital   Option   Premium  Reduction    Stock   Reserve      reserve       Loss     Equity
                                Reserve              Reserve  Reserve                           Account
                        £000's   £000's    £000's     £000's   £000's    £000's       £000's     £000's     £000's

Balance at 1
January 2006             1,905      308     1,509      7,228        6     1,534            -       (737)    11,753
- prior period 
adjustments                                                                                           -          -
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------
- as restated            1,905      308     1,509      7,228        6     1,534            -       (737)    11,753

Exercise of
share options               15        -        14          -                  -            -          -         30
Net gains/(losses) 
not recognised in 
the income 
statement
Issue of new
share capital              500              9,166          -                  -            -          -      9,666
Capital Reduction                               -          -        -                      -          -          -
Conversion of 
convertible 
loan notes                   -                  -          -        -         -            -          -          -
Shares issued for 
consideration                -                  -          -                  -            -          -          -
Net profit for
the year                     -                  -          -                  -            -      1,247      1,247
Dividends                                                                                  -
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------
Balance at 30
June 2006                2,421      308    10,690      7,228        6     1,534            -        510     22,696
                       -------  -------  --------   --------  -------   -------     --------  ---------  ---------


 4   Business Segments
     For the six months ending 30.06.07
                                             Powered    Zero    Engineering Consolidated
                                             Access   Emmission
                                            Platforms Vehicles
                                             £000's    £000's     £000's       £000's
                                            --------  --------   --------    ---------
     Revenue
     External Sales                          19,124    13,085       4,617       36,826
     Inter-segment sales
                                             --------  --------    --------    ---------
     Total revenue                           19,124    13,085       4,617       36,826
                                             --------  --------    --------    ---------
     Result
     Segment Result before restructuring      3,464     2,069         185        5,718
     Unallocated corporate expenses               -         -           -         (451)
     Profit from operations                   3,464     2,069         185        5,267
     Finance costs                               56        30           5           91
                                             --------  --------    --------    ---------
     Profit before tax                        3,520     2,099         190        5,358
                                             --------  --------    --------    ---------

     Income tax expense                         986       588          53        1,500
                                             --------  --------    --------    ---------
     Profit after tax                         2,534     1,511         137        3,858
                                             --------  --------    --------    ---------
     Other information
     Capital additions                        1,060     2,012          26        3,098
     Depreciation and amortisation              303       387         156          846
     Balance Sheet
     Assets:
     Segment assets                          33,306    20,092      14,087       67,485
                                             --------  --------    --------    ---------
     Consolidated total assets               33,306    20,092      14,087       67,485
                                             --------  --------    --------    ---------
     Liabilities:
     Segment Liabilities                     10,491     5,714       3,867       20,072
                                             --------  --------    --------    ---------
     Consolidated total liabilities          10,491     5,714       3,867       20,072
                                             --------  --------    --------    ---------

     For the six months ending 30.06.06
                                             Powered    Zero    Engineering Consolidated
                                             Access   Emmission
                                            Platforms Vehicles
                                             £000's    £000's     £000's       £000's
                                            --------  --------   --------    ---------
     Revenue
     External Sales                           3,128     8,883       4,483       16,494
     Inter-segment sales
                                             --------  --------    --------    ---------
     Total revenue                            3,128     8,883       4,483       16,494
                                             --------  --------    --------    ---------
     Result
     Segment Result before restructuring        367     1,279         423        2,068
     Restructuring costs                        211         -           -          211
     Unallocated corporate expenses                         -           -            -
     Profit from operations                     156     1,279         423        1,858
     Finance costs                              (24)      (68)        (34)        (126)
                                             --------  --------    --------    ---------
     Profit before tax                          132     1,211         389        1,732
                                             --------  --------    --------    ---------

     Income tax expense                          37       339         109          485
                                             --------  --------    --------    ---------
     Profit after tax                            95       872         280        1,247
                                             --------  --------    --------    ---------
     Other information
     Capital additions                        1,243       415          68        1,726
     Depreciation and amortisation             (355)      433          94          173
     Balance Sheet
     Assets:
     Segment assets                          16,062    10,558       9,912       36,532
                                             --------  --------    --------    ---------
     Consolidated total assets               16,062    10,558       9,912       36,532
                                             --------  --------    --------    ---------
     Liabilities:
     Segment Liabilities                      3,579     5,949       3,658       13,186
                                             --------  --------    --------    ---------
     Consolidated total liabilities           3,579     5,949       3,658       13,186
                                             --------  --------    --------    ---------

     For the twelve months ending 31.12.06
                                             Powered    Zero    Engineering Consolidated
                                             Access   Emmission
                                            Platforms Vehicles
                                             £000's    £000's     £000's       £000's
                                            --------  --------   --------    ---------
     Revenue
     External Sales                          11,330    19,966       9,617       40,913
     Inter-segment sales
                                             --------  --------    --------    ---------
     Total revenue                           11,330    19,966       9,617       40,913
                                             --------  --------    --------    ---------
     Result
     Segment Result before restructuring      3,530     2,224         437        6,191
     Restructuring costs                     (1,877)        -           -       (1,877)
     Unallocated corporate expenses               -         -           -         (751)
     Profit from operations                   1,653     2,224         437        3,563
     Finance costs                              (10)      (65)        (30)        (105)
                                             --------  --------    --------    ---------
     Profit before tax                        1,643     2,159         407        3,458
                                             --------  --------    --------    ---------

     Income tax expense                         301       448          97          846
                                             --------  --------    --------    ---------
     Profit after tax                         1,342     1,711         310        2,612
                                             --------  --------    --------    ---------
     Other information
     Capital additions                        3,268       456          82        3,806
     Depreciation and amortisation           (1,905)      775         313         (816)
     Balance Sheet
     Assets:
     Segment assets                          26,112    16,188      14,059       56,359
                                             --------  --------    --------    ---------
     Consolidated total assets               26,112    16,188      14,059       56,359
                                             --------  --------    --------    ---------
     Liabilities:
     Segment Liabilities                      5,803     4,016       3,122       12,941
                                             --------  --------    --------    ---------
     Consolidated total liabilities           5,803     4,016       3,122       12,941
                                             --------  --------    --------    ---------







Earnings per Share

   Including discontinuing operations

   The calculation of the basic and diluted earnings per share is based on the following data:

                                                            6 months ended    6 months ended    Year Ended
   Earnings                                                       30/06/07          30/06/06    31/12/2006

   Earnings for the purposes of basic earnings per share             3,858             1,732         2,504

   Effect of dilutive potential ordinary shares:                         -                14            14
    - interest on convertible loan notes

   Earnings for the purposes of diluted earnings per share           3,858             1,718         2,490

   Number of shares

   Weighted average number of ordinary shares for 
   the purposes of basic earnings per share                    292,220,713       216,053,300   237,396,217
   

   Convertible Loan Notes                                                -           789,474       789,474

   Share Options                                                14,353,671         2,928,671    14,453,671

   Weighted average number of ordinary shares for 
   the purposes of diluted                                     306,574,384       219,771,444   252,639,361
   earnings per share

   From continuing operations

   The calculation of the basic and diluted earnings per share is based on the following data:

                                                            6 months ended        Year Ended    Year Ended
   Earnings                                                       30/06/07        31/12/2006    31/12/2006

   Earnings for the purposes of basic earnings per share             3,858             1,732         2,614

   Effect of dilutive potential ordinary shares:                         -                14            14
    - interest on convertible loan notes

   Earnings for the purposes of diluted earnings per share           3,858             1,718         2,600

   From discontinued operations
                                                            6 months ended    6 months ended    Year Ended
                                                                  30/06/07          30/06/06    31/12/2006

   Basic                                                              1.32              0.80          1.10   p
   Diluted                                                            1.26              0.78          1.03   p




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