Acquisition

Headlam Group PLC
04 May 2004







To:  Company Announcements Office
Primary Markets Division
The London Stock Exchange
Company announcements    Tel  [phone]



For immediate release


                                                                      4 May 2004


                               Headlam Group plc


Headlam Group plc, the leading UK floorcoverings distributor, announces that on
30 April 2004 it acquired National Carpets, a supplier of carpets, residential
vinyl, carpet tiles and rugs to the DIY sector in the UK.

In the year to 31 August 2003, National Carpets sales were £13.4 million and
profits before tax £532,000.

Cash consideration paid at completion was £3,437,000, with a further £300,000 on
the first anniversary and £300,000 on the second anniversary of completion.  All
payments will be funded from internal resources.

Net assets acquired are £2.5 million, subject to the finalisation of completion
accounts.

National Carpets will operate autonomously from its distribution centre in
Rochdale.


Enquiries:          Tony Brewer, Headlam Group Chief Executive
                    Steve Wilson, Headlam Group Finance Director
                    Tel:  [phone]


End

4 May 2004


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