Tanfield Group PLC
30 September 2005


                               Tanfield Group plc

                                Interim Results

                          Six months to June 30, 2005

Highlights
     
     1.   Turnover Growth £10.4 million from £5.1 million (6 months to June 
          2004)
     2.   Operating profit £332k compared to loss of (£5.2) million (year to
          December 2004)     
     3.   Strengthened Balance Sheet £8.3 million net assets from £1 million           
          (at Jan 1 2005)
     4.   Continued growth in order book
     5.   Launch of new products:
          Aerial Access; and
          Electric Vehicles

Tanfield Group Plc ("Tanfield") is pleased to announce its unaudited interim
results for the six month period to June 2005 and also takes the opportunity to
comment on recent trading performance and future prospects.

Following the large scale restructuring in 2004 the financial results for the
six months to June 2005 demonstrate strong growth, profitability and a robust
balance sheet.

Turnover for the six month period grew to £10.4m which compares to £11.8m for
the full year to December 2004 and £5.1m for the 6 months to June 2004. This
follows significant organic growth in Tanfield Holdings, our engineering
business, and the acquisition and subsequent growth of Smiths Electric Vehicles
(SEV).

Operating profit for the period of £332k compares favourably to the loss of £
(5.2)m in the year to December 2004 and the Group showed growth in its Gross
margin, up from 23% in 2004 to 26% for the period.

This profitable growth underlines the benefits of the strategy for the Group as
announced last year, to concentrate on value added engineering work with Blue
chip customers together with the expansion of the OEM product ranges of Electric
Vehicles and Aerial Access equipment. The results have been enhanced by the
success of the operational strategy at the Tanfield site which has significantly
reduced the unit cost of manufacture and improved output volumes. The Tanfield
site now operates as a single, efficient manufacturing unit covering all the
Group divisions.

The balance sheet has been significantly strengthened during the period with net
assets at the end of June of £8.3m compared to £1m at the end of December 2004.
We now have Net Current Assets of £2.8m compared to Net Current Liabilities of
£1.7m at December 2004, and debt has reduced by £2.3m to stand at £2.3m at June
2005.

During the period a new £4m Group bank facility was implemented which not only
increases the working capital facilities available to the Group but will also
significantly reduce the cost of borrowing. Furthermore the Group has raised
mortgage funding to allow it to acquire the long leasehold on two of its key
buildings on the Tanfield site for a consideration of £1.16m. The relocation of
the SEV manufacturing operation from its existing site at Gateshead to Tanfield
is now complete.

Trading Update

Smiths Electric Vehicles:

The prior year acquisition of SEV Group has proved to be a success which the
Directors believe has significantly increased the growth potential for the
Group. As noted above the SEV operation is now integrated into the Tanfield site
with consequent cost savings.

     Aerial Access

     The Aerial Access division has shown growth in both existing and new 
     markets. More aggressive marketing of what was already a well respected 
     product range has seen growth in both the United States and mainland 
     Europe. Better distribution channels, new agents and improvements to the 
     range have assisted this growth. Monthly output capacity of the Access 
     Vehicles has increased from 12 vehicles to over 70 vehicles in the 11 
     months since SEV was acquired. Furthermore a new range of Aerial Access 
     lifts based on a standardised build program with enhanced features and 
     telescopic booms were launched this month. This product range has been well 
     received by the market. We expect this will allow us to capture a larger 
     market share in our target regions. Distribution of the product range will 
     be increased over the next two months by appointing more agents in mainland
     and Eastern Europe.

     Electric Vehicle

     The most exciting development has been the significant growth in the order 
     book for Electric Vehicles. The Group expects this division to demonstrate
     substantial growth in the future. We have won increased orders for vehicles 
     in the airport, public and delivery sectors. A new electric delivery 
     vehicle and a new range of electric tugs are to be launched in October 
     2005. The control technology on these vehicles will allow the Group to 
     migrate into the 'donor vehicle' sector, whereby we use standard body 
     shells from the commercial vehicle automotive sector and build in our 
     electric drive and control systems, as well as continuing to promote the 
     Group's own range of vehicles. The Directors believe that this will present 
     a full electric delivery vehicle offering to the operators within closed 
     urban environments.

     Service and Maintenance

     We are continuing to see further growth potential in the Service and 
     Maintenance division based out of our nationwide chain of Depots. SEV 
     currently has over 80 people employed in servicing and maintaining electric 
     vehicles throughout the UK. As announced yesterday the potential for the 
     Dairy Crest business is to more than double the size of this division. This 
     gives existing and future buyers of electric vehicles the confidence that 
     there is a high level of support for their fleets.

Norquip:

The acquisition of the Norquip business for £280k in May is already starting to
bear fruit. This acquisition has increased our product offering, particularly in
the airport sector, and allows the Group to integrate this product range with
our Electric drive train. We have received orders for 4 vehicles and have a
level of enquiries which if converted would generate £5m of sales.

Tanfield Holdings:

As mentioned above we have seen significant organic growth within the Tanfield
Holdings engineering business. Concentration on the move away from simply
manufacturing components towards assemblies and turnkey solutions has proved
successful with a number of new Blue chip customers together with growth with
existing customers. In addition, these orders offer a significantly higher
proportion of value added work and hence higher margin. Tanfield Holdings
monthly run rate has grown significantly during the first half year and we are
confident of being able to grow further, particularly in the Health, Defence and
Off Highway markets.

Summary

Following a year of large scale restructuring in 2004 and the strategic
acquisitions of SEV Group and Norquip the Group is now demonstrating markedly
improved profitable growth. We have a number of exciting new products in the
Aerial Access and Electric Vehicle sectors which are soon to be launched and we
are seeing continuing organic growth in all our chosen target markets. We are
also now operating from a position of renewed financial strength.

I would like to take this opportunity to thank all our people for their efforts
over the past 12 months and for the continuing support of all our stakeholders.

Roy Stanley
Chairman Tanfield Group plc


Tanfield Group PLC
Consolidated Profit and Loss Account
For the six months ended 30th June 2005


                                                              Unaudited           Unaudited            Audited
                                                            6 Months to         6 Months to      Year ended 31
                                                  Note   30th June 2005      30th June 2004      December 2004
                                                                      £                   £                  £
TURNOVER
Existing Operations                                          10,273,809           5,099,812         10,686,989
Acquisitions                                          4         168,808                   -                  -
                                                         --------------      --------------     --------------

Continuing operations                                        10,442,617           5,099,812         10,686,989
Discontinued operations                                                                              1,077,750
                                                         --------------      --------------     --------------
                                                             10,442,617           5,099,812         11,764,739
                                                         --------------      --------------     --------------
Cost of Sales
-Exceptional cost of sales                            5               -                   -           (252,760)
-Other cost of sales                                         (7,738,591)         (2,048,032)        (8,766,955)
                                                         --------------      --------------     --------------
Total cost of sales                                          (7,738,591)         (2,048,032)        (9,019,715)
                                                         --------------      --------------     --------------

                                                         --------------      --------------     --------------
Gross Profit                                                  2,704,026           3,051,780          2,745,024
                                                         --------------      --------------     --------------

Administrative Expenses
-Exceptional administrative expenses                  5               -          (1,642,560)        (1,859,000)
-Other administrative expenses                               (2,372,314)         (3,624,232)        (6,061,473)
                                                         --------------      --------------     --------------
Total administrative expenses                                (2,372,314)         (5,266,792)        (7,920,473)
                                                         --------------      --------------     --------------

OPERATING PROFIT/ (LOSS)
Existing Operations                                             332,807          (2,215,012)        (4,815,487)
Acquisitions                                          4          (1,096)                  -                  -
                                                         --------------      --------------     --------------

Continuing operations                                           331,712          (2,215,012)        (4,815,487)
Discontinued operations                                               -                   -           (359,962)
                                                         --------------      --------------     --------------

OPERATING PROFIT/(LOSS)                                         331,712          (2,215,012)        (5,175,449)

Interest Receivable and similar income                           97,938              15,216             18,916
Interest Payable and similar charges                           (377,959)           (355,156)          (848,117)
                                                         --------------      --------------     --------------
PROFIT/(LOSS) ON ORDINARY ACTIVITES BEFORE TAXATION              51,691          (2,554,952)        (6,004,650)

Tax on loss on ordinary activities                    2               -                   -             38,446
                                                         --------------      --------------     --------------
RETAINED PROFIT/(LOSS) FOR FINANCIAL YEAR/PERIOD                 51,691          (2,554,952)        (5,966,204)
                                                         ==============      ==============     ==============

Basic Profit/(loss) per ordinary share                6            0.04p              (4.14)p            (4.49)p
                                                         ==============      ==============     ==============
Diluted Earnings per share                            6            0.04p                  -                  -
                                                         ==============      ==============     ==============

Tanfield Group PLC
Consolidated Balance Sheet
As at 30th June 2005


                                                    Note      Unaudited           Unaudited                    Audited
                                                           30 June 2005        30 June 2004           31 December 2004
FIXED ASSETS                                                          £                   £                          £

Intangible Assets                                             5,591,208           4,425,751                  5,236,731
Tangible Assets                                               3,752,421           1,415,801                  2,332,537
                                                         --------------      --------------             --------------
                                                              9,343,629           5,841,552                  7,569,268
                                                         --------------      --------------             --------------
CURRENT ASSETS
Stocks                                                        3,921,418             769,277                  2,417,395
Debtors                                                       5,330,034           1,946,436                  4,042,035
Cash at bank and in hand                                      1,015,972           3,188,503                  8,745,702
                                                         --------------      --------------             --------------
                                                             10,267,424           5,904,216                 15,205,132

CREDITORS: amounts falling due within one year               (7,511,036)        (10,665,383)               (16,878,345)
                                                         --------------      --------------             --------------
NET CURRENT ASSETS/(LIABILITIES)                              2,756,388          (4,761,167)                (1,673,213)
                                                         --------------      --------------             --------------

TOTAL ASSETS LESS CURRENT LIABILITIES                        12,100,017           1,080,385                  5,896,055

CREDITORS: amounts falling due after more than one year 
Convertible Debt                                                (75,000)         (1,831,880)                (1,831,880)
Other Creditors                                              (2,690,193)         (1,270,901)                (1,547,641)

PROVISIONS FOR LIABILITIES AND CHARGES                 7     (1,012,452)           (351,019)                (1,487,532)
                                                         --------------      --------------             --------------
                                                              8,322,372          (2,373,415)                 1,029,002
                                                         ==============      ==============             ==============

CAPITAL AND RESERVES

Called Up
Share Capital                                                 1,818,616             617,347                  1,327,847
Shares to be issued                                             162,304             298,706                    298,706
Other reserve                                                         -             111,150                    111,150
Share Premium Account                                        25,301,685          12,528,605                 18,631,774
Merger Reserve                                                1,614,740           1,533,740                  1,533,740
Profit and Loss Account                                     (20,574,973)        (17,462,963)               (20,874,215)
                                                         --------------      --------------             --------------
TOTAL EQUITY SHAREHOLDERS' FUNDS/(DEFICIT)                    8,322,372          (2,373,415)                 1,029,002
                                                         ==============      ==============             ==============


Tanfield Group PLC
Consolidated Cash Flow Statement
For the six months ended 30th June 2005


                                                              Unaudited           Unaudited            Audited
                                                            6 Months to         6 Months to      Year ended 31
                                                  Note   30th June 2005      30th June 2004      December 2004
                                                                      £                   £                  £

Net cash outflow from operating activities           8       (2,354,329)           (757,133)        (2,614,290)

Returns on investments and servicing of finance                (460,021)           (339,939)          (601,201)

Taxation                                                              0                   0                  0

Acquisitions and disposals                                     (328,818)                  0         (2,541,354)

Capital expenditure & financial investment                   (1,681,350)            184,751              8,910
                                                         --------------      --------------     --------------

Cash Outflow before financing                                (4,824,518)           (912,321)        (5,747,935)

Financing                                                     5,765,509            (483,090)         5,956,030
                                                         --------------      --------------     --------------
Increase/(Decrease) in cash in the period                       940,991          (1,395,411)           208,095
                                                         ==============      ==============     ==============

NOTES
     
1.   Basis of preparation

     The financial statements for the six months ended 30 June 2005 have been 
     neither audited nor reviewed, nor have the financial statements for the six 
     months ended 30 June 2004. They have been prepared on a consistent basis 
     using accounting policies set out in the Tanfield Group Plc statutory 
     accounts for the period ended 31 December 2004.

     The figures for the year ended 31 December 2004 do not constitute the 
     company's statutory accounts for that period within the meaning of Section 
     240 of the Companies Act but have been extracted from the statutory 
     accounts, which have been filed with the Registrar of Companies. The 
     auditors have reported on those accounts and that report was unqualified 
     and did not contain a statement under Section 237(2) or Section 237(3) 
     of the Companies Act 1985.

2.   Taxation

     The tax charge in the period is based on the anticipated effective rate of 
     tax for the period to 31st December 2005.

3.   Acquisitions

     During the period the Group acquired the entire issued share capital of
     Clickhere Limited for a total initial consideration of £120,000. This 
     comprised 900,000 ordinary shares with a nominal value of 1p each together 
     with cash of £30,000.  The provisionally assessed fair value of the net 
     liabilities of the acquired company was £95,434 (including net overdraft 
     of £18,018) and goodwill of £215,434 arose after the application of merger 
     relief.

     Also during the period the Group entered an agreement whereby it acquired 
     the trade and certain assets of both Norquip Limited and Saxon Specialist 
     Vehicles Limited from their parent Ennstone plc in exchange for cash 
     consideration of £280,000.  The directors have not yet completed their 
     investigation into the fair value of all assets acquired although their 
     provisional assessment is that intellectual property acquired has a fair 
     value of £280,000, sundry stock items acquired have a fair value of £nil, 
     and that no goodwill arose on acquisition. This assessment will be 
     completed and updated as necessary within the annual accounts as allowed by 
     FRS 7.

4.   Segmental Information

     SEGMENT INFORMATION

     Classes of business

     £'000            Engineering         Vehicle Hire      Software Training    Graphical Imaging          Group
                   6 mths   12 mths    6 mths   12 mths     6 mths    12 mths    6 mths    12 mths     6 mths  12 mths
                   Jun-05    Dec-04    Jun-05     Dec-04     Jun-05    Dec-04    Jun-05     Dec-04     Jun-05    Dec-04


     Turnover
     Total Sales    10,553    11,483      927        406        171        34        12        134     11,662   12,057
     Inter-segment
     sales          (1,220)     (292)       -          -          -         -         -          -     (1,220)    (292)

     Sales to Third      
     Parties         9,333    11,191      927        406        171        34        12        134     10,443   11,765

     Finance charges 
     (net)                                                                                               (280)    (829)

     Segment Profit/
     (Loss) before tax 368    (5,333)     118        143        (82)      (54)      (49)      (760)       355
     Common Costs                                                                                        (303)
                                                                                                      -------
     Group Profit/
     (Loss before tax)                                                                                     52   (6,004)
                                                                                                     -----------------
     Net assets/
     (liabilities)  11,051     3,457      801        683       (728)      (591)   (2,802)    (2,520)     8,322   1,029


     Common costs include goodwill and legal & professional charges which the
     directors do not believe can be allocated fairly across the segments.

     The analyses presented above include the following amounts in respect of
     operations acquired during the 6 months to June 2005. The figures are all
     included within Software Training

     Sales to third parties £168,808
     Loss before tax £1,096
     Net Liabilities £96,230

     The geographical analysis of turnover by destination is:

                                        6 Months to 30th        Year ended 31st
                                               June 2005          December 2004
                                                       £                      £

     United Kingdom                            8,593,229             11,231,717
     USA                                       1,374,812                271,757
     Other European
     Countries                                   474,576                261,265
                                        ----------------        ---------------
                                              10,442,617             11,764,739
                                        ================        ===============
     
5.   Exceptional Items

                                               6 Months to 30th   6 Months to 30th        Year ended 31st
                                                      June 2005          June 2004          December 2004
                                                              £                  £                      £
     Exceptional cost of sales
     Stock Provision                                          -                  -                252,760
                                               ================   ================        ===============

     Exceptional administrative costs
     Impairment of fixed assets                               -          1,642,560            1,859,000
                                               ================   ================        ===============

6.   Profit/(Loss) per ordinary share

     Basic Profit/(Loss) per share has been calculated using weighted average 
     number of shares in issue during the relevant financial periods.

                                                                  Unaudited            Unaudited                Audited
                                                             6 months ended       6 months ended        12 months ended 
                                                               30 June 2005         30 June 2004       31 December 2004 
          
     Weighted average number of shares (no.)                    146,563,869           61,734,716             72,209,946
     
     Profit/(Loss) on ordinary activities after taxation (£)         51,691           (2,554,952)            (5,966,204)


     The calculation of diluted earnings per share for the period ending 
     30 June 2005 is based upon a weighted average number of shares in issue of 
     147,261,709 after adjusting for 697,840 potentially dilutive ordinary 
     shares arising from share options. No diluted loss per share was calculated 
     for the periods ending 30 June 2004 or 31 December 2004 as the effect of 
     outstanding share options and convertible debt was anti-dilutive.

7.   Movement on provisions

     PROVISIONS FOR LIABILITIES AND CHARGES

     Group                                                    Warranty            Legal          Onerous         
                                                             Provision          Reserve            Lease         Total
                                                                     £                £                £             £

     As at 1st January 2005                                    155,160          584,126          748,246     1,487,532
     Utilised in period                                                         (20,521)                       (20,521)
     (Released)/charged to profit and loss account                               28,876         (483,435)     (454,559)
                                                                                                                     0
                                                            ----------       ----------       ----------    ----------
     As at 30th June 2005                                      155,160          592,481          264,811     1,012,452
                                                            ----------       ----------       ----------    ----------
     
8.   Net cash outflow from operating activities


                                                             Unaudited            Unaudited                Audited
                                                        6 months ended       6 months ended        12 months ended 
                                                          30 June 2005         30 June 2004       31 December 2004  
     Operating profit/(loss) loss                              331,712           (2,215,012)            (5,175,449)
     Depreciation on tangible fixed assets                     373,662              237,936                570,013
     Impairment of tangible fixed assets                             -            1,160,370              1,337,000
     Amortisation of intangible fixed assets                   140,957              154,791                235,548
     Impairment of intangible fixed assets                           -                    -                      -
     (Profit)/Loss on disposal of tangible fixed assets       (104,586)                   -                      -
     (Decrease)/ Increase in provisions                       (475,080)            (192,750)               283,602
     (Increase)/Decrease in stocks                          (1,504,023)               9,723                319,149
     (Increase)/Decrease in debtors                         (1,251,025)            (743,831)              (997,592)
     Increase/(Decrease) in creditors                          134,054              831,640                813,437
                                                        --------------       --------------         --------------
     Net cash outflow from operating activities             (2,354,329)            (757,133)            (2,614,290)
                                                        ==============       ==============         ==============



For further information call;

Tanfield Group PLC
Roy Stanley - Chief Executive - 01207 521111

Daniel Stewart & Company PLC
Ruari McGirr - 020 7776 6550



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