Acquisition

Headlam Group PLC
11 February 2002

Headlam Group plc - Acquisition

Headlam Group plc ('Headlam'), the leading UK floorcoverings distributor,
announces that on Friday, 8 February it acquired the trading assets of the UK
floorcovering distribution business of Rikett AS of Norway.

The business will be relocated to Joseph, Hamilton and Seaton Limited ('JHS'),
Headlam's specialist contract flooring business. The acquisition complements JHS
contract carpet business with entry to the commercial hard flooring market. In
keeping with Headlam's operating strategy, the business will be operated to
preserve its independent identity.

Initial consideration based on the net assets acquired was approximately
£260,000 subject to a further small payment once the stock as at completion has
been finalised.

In addition Headlam announces that also on Friday, 8 February it acquired the
trading assets of Floortrade Company Limited including the trade name HBS
Floortrade.

The business will be relocated to an existing Headlam warehouse and distribution
facility in Stockport and will increase Headlam's market penetration in the
North West. HBS Floortrade will retain its independent identity, products and
position in the industry.

Consideration based on the net assets acquired was approximately £100,000.



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