PKW Parkwood Hldgs.

    PARKWOOD HOLDINGS plc                             

                         ("Parkwood" or "the Company")                         

            Parkwood and TEG Announce First Plant in Joint Venture             

                      Verdia Plant Construction Underway                       

Verdia Horticulture Limited ("Verdia"), the joint venture company established
between Glendale Managed Services Limited ("Glendale"), the "green services"
division of Parkwood Holdings plc, and The TEG Group Plc, has commenced
construction of its first TEG Silo Cage plant at Hillbarton, Exeter. The
announcement follows confirmation of full planning approval for the
development.

The capacity of the TEG Silo Cage plant will be 14,000 tonnes per annum,
producing approximately 8,000 tonnes per annum of compost. The compost will be
matured and blended to produce horticultural grade material for sale into the
local horticultural sector.

The waste will be supplied from local authority green waste collections via the
Glendale composting subsidiary Eco Sci, and from private sector contracts for
food waste and food processing waste. Glendale will provide compost product
expertise and knowledge of the horticultural product market, together with
analytical and compost product services.

The development is on a site leased by Glendale and will be a shared facility
with Eco Sci who will carry out green waste composting in an adjacent
operation. The plant and equipment will be supplied by TEG. The total cost of
the development will be approximately �2.5m of which approximately �1m will be
the cost of the building development and �1.5m the cost of the plant and
equipment. Funding of the building work is part of the lease arrangement with
the overall site landlord. Funding of the plant and equipment will be by
finance lease through Barclays Asset Finance. The site is scheduled to be
operational by the end of Quarter 3 of this year.

Commenting for Parkwood, Executive Chairman Tony Hewitt said:

"Our joint venture with TEG is part of the Parkwood Group's strategic plan to
develop its diverse suite of green services to Local Authorities and the
Commercial sectors."

This new facility provides the opportunity to expand our recycling activities
within the rapidly developing UK composting market and also provides the ideal
location for Glendale's Devon based `EcoSci' green waste recycling operations."

Commenting for TEG, Chief Executive Mick Fishwick said:

"This is a further significant step in the development of TEG. Our joint
venture with Glendale offers us the opportunity to both develop a new revenue
stream and also to gain a foothold in the higher value horticultural sector,
and to work with an expert and market leader in that area. Verdia has an
exciting future and we hope this is the first of many such plants to be
developed over the coming years. "

"The construction of yet another TEG Silo Cage plant is a further endorsement
of our technology and capabilities and we look forward to opening the first TEG
plant in the South West region."

Contact:

Parkwood Holdings plc Tel: 01772 627111

Terry Bowman, Group Finance Director

The TEG Group Plc Tel: 01772 314100

Michael Fishwick, Chief Executive

Notes to editors:

About Parkwood Holdings plc:

Parkwood Holdings plc specialises in providing outsourced and support services,
predominantly to the public sector across England and Wales under long term
contracts. Its four main areas of operation are as follows:

Glendale Provides amenity horticulture, grass cutting, arboriculture and care
of sports pitches, parks and open spaces. The division also includes golf
course management, waste recycling, environmental consultancy, tree moving and
horticulture.

Parkwood Leisure Manages a diverse range of public and private leisure
facilities, including swimming pools, sports halls, gyms, health suites and
catering operations.

Project Management Undertakes PFI, PPP and similar bids on behalf of joint
ventures and the Group. Parkwood Project Management is also responsible for
project management of contracts and the management of other funds such as the
lifecycle funds associated with the project agreements.

Healthcare A nursing agency and an ambulance and patient transport business,
Parkwood Healthcare is expanding its operations from London and the South East
into other parts of England and Wales, dealing both with the NHS and the
private sector.

Verdia

Verdia Horticulture Limited is a joint venture company established by TEG and
Glendale Managed Services Limited, a subsidiary of Parkwood Holdings Plc. The
joint venture combines the technical expertise of TEG with the horticultural
expertise of Glendale. Verdia's aim is to open a number of regional composting
facilities designed to manufacture high grade compost products for sale into
the horticultural sector.



END

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