The application of the TAGE method to variable coefficients singularly perturbed elliptic two point boundary value problem of convection-diffusion type is studied. The derivatives are approximated both by compact fourth order differences and central differences. Numerical experiments are carried out. The solutions obtained using fourth order scheme are found to be both oscillation free and convergent for large cell Reynolds number. The parallel implementation of the TAGE method is also discussed. The TAGE method is flexible and very suitable for use on parallel computers.