Acquisition

Headlam Group PLC
5 June 2002

                                                                     5 June 2002



                               Headlam Group plc




Headlam Group plc ('Headlam'), the leading UK floorcoverings distributor,
announces that on Friday 31 May 2002 it acquired the trade, stock, marketing and
distribution rights of Crucial Trading.


Crucial Trading is the leading UK supplier of natural floorcoverings and
complements Headlam's existing activities. It will be relocated and operated
from an existing Headlam facility.


Crucial Trading net assets as at 30 April 2002 were £0.41 million. Consideration
was £1.77 million paid in cash, £1.70 million on completion with a further £0.07
million held in escrow pending the final determination of the assets acquired.
The acquisition was funded from Headlam's internal resources. Sales for the year
ended 31 December 2001 were £5.445 million.


Enquiries:   Tony Brewer     Headlam Group Chief Executive

             Steve Wilson     Headlam Group Finance Director

             Tel : [phone]


End






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