STOB.L Regulatory News (STOB)

For immediate release, 23rd May 2011

STOBART BIOMASS WINS MAJOR NEW CONTRACT WITH IGGESUND PAPERBOARD - PART OF SWEDISH FORESTRY GROUP, HOLMEN

·; £90 million biomass supply and logistics agreement

·; Contract to supply biomass fuel to new Iggesund green energy power station on Britain's Energy Coast

·; Eddie Stobart to provide transport requirements

Stobart Biomass, the UK's leading supplier of timber-based biomass fuel, has agreed commercial terms for a major new long-term supply and logistics contract with Iggesund Paperboard (Workington) Ltd in West Cumbria.

The contract covers sourcing, supply and transportation of forest residue and recycled wood for use as biomass fuel at the new £100 million green energy power station at Iggesund's paper mill. Building on Eddie Stobart's existing transport and warehousing contract with Iggesund, the companies will work in partnership providing low-carbon energy at the plant, drawing on extensive experience within Stobart Biomass and A.W Jenkinson in operating a similar facility in Lockerbie.

Stobart Group CEO, Andrew Tinkler, said: "Stobart Biomass is growing apace with the development of this fast-expanding new sector, and this long-term agreement is typical of other contracts currently under negotiation. The supply and distribution nature of the agreement delivers further commercial and efficiency benefits in the Group's transport and logistics division, as biomass delivery is added to the distribution contract, facilitating greater fleet utilisation."

He added: "Cumbria is the home of Stobart Group and to play a part in the development of Britain's new Energy Coast is important to the company. We are proud to contribute green solutions for energy generation in an area traditionally synonymous with nuclear power."

Work on the contract commences in the first quarter of 2013, replacing gas-power with biomass fuel at the Iggesund low-carbon power station.

ENDS

About Stobart Group

Stobart Group is listed on the London Stock Exchange in the FTSE250 (LSE:STOB). Operating from over 40 sites across the UK and Europe, Stobart Group is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Stobart Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 2,250 tractor units and over six million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group's corporate structure.

www.stobartgroup.co.uk

Further information:

James Andrew james@influenceltd.com 07772 534 985

Glenn Patterson glenn@reallycleverpr.com 07872 470115

Jessica Shepherd-Smith jessica@halkincomms.com 07787 518262