PKW Parkwood Hldgs.

    Parkwood Holdings plc                             

RNS release

27 July 2007

Joint Venture with TEG Group Plc

Parkwood Holdings plc, the support services business, through Glendale, its
specialist green services division, has formed a new Joint Venture company with
The TEG Group Plc ("TEG"), an AIM-listed company with a technology that
converts organic wastes into natural organic fertiliser.

The Joint Venture, named Verdia Horticulture Limited ("Verdia"), will build and
operate specialist Silo Cage In-Vessel Composting technology facilities that
turn organic wastes into commercial horticultural compost products. The
products will be sold to Glendale and to regional horticultural markets.

Each company will hold 50% of Verdia's equity. The JV agreement contains the
normal change of control provisions should a third party take a 75% interest in
either parent company.

Verdia intends to build and operate between six to eight medium-scale organic
waste conversion facilities of typically 10-15,000 tonnes feed per annum over
the next two to three years. It is anticipated that the facilities will be
funded largely by bank debt.

According to 2005 DEFRA estimates, the amount of UK Biodegradable Municipal
Waste requiring non-landfill disposal will approximately triple by 2020 to an
estimated 28m tonnes.

The first two facilities are expected to be Clayland's Corner in Somerset and
Hill Barton in Exeter. Both sites have planning consent in place for TEG Silo
Cage technology. Construction at the sites is expected to commence in Quarter 3
of 2007.

TEG will supply TEG Silo Cage plants to Verdia and will provide technical
expertise and support, as well as marketing services for waste supply to the
plants.

Glendale will provide compost product expertise, knowledge of the horticultural
product market and of course its reputation of successfully delivering to
budget large multi-year local authority horticultural contracts. Currently,
Glendale has contracts with over 50 local authorities throughout the UK,
including supplying compost product services from subsidiary Eco Sci.

Verdia intends to bid for medium-scale Local Authority waste contracts and
private sector contracts, sufficient to support the scale of facilities it will
operate.

Tony Hewitt, Executive Chairman of Parkwood Holdings, commented:

"We have collaborated successfully with TEG for the last 16 months and it is
clear that our product expertise and knowledge of the horticultural market fits
naturally with TEG's technology expertise. By creating Verdia with TEG, we have
a new and exciting opportunity to expand Glendale's recycling activities within
the rapidly developing UK composting market. We are delighted to have signed
this new Joint Venture."

Nick Temple-Heald, Managing Director of Glendale, added:

"As the largest player in our market, we have strong contacts with the leading
suppliers in amenity horticulture, including on the trade and retail sides.
With ever-increasing demand for non-peat based products and environmentally
sustainable horticulture, and of course rising Landfill taxes and heavy fines
for those that go over their waste quotas, we believe this is a very large
market opportunity and that we are ideally placed to address it."

For further information, please contact:

Parkwood Holdings plc

Tony Hewitt, Executive Chairman - 01772 627 111

Terry Bowman, Financial Director - 01772 627 111

Glendale

Nick Temple-Heald, Managing Director - 01772 627 111

Smithfield

Neil Boom - 020 7360 4900

Brewin Dolphin Securities Limited

Neil Baldwin - 0113 241 0126

Information on Parkwood Holdings plc can be accessed via the company's website
at www.parkwood-holdings.co.uk



END

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