Acquisition

Headlam Group PLC
20 September 2004



To : Company Announcements Office

     Primary Markets Division

     The London Stock Exchange

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For immediate release

                                                               20 September 2004


Headlam Group plc


Headlam Group plc, the leading UK floorcoverings distributor, announces that on
17 September 2004 it acquired Kingsmead Carpets a supplier of residential
carpets to independent and multiple retailers within the UK.


In the year to 30th April 2004, Kingsmead Carpets sales were £7.15 million.


Consideration payable in cash on completion is £350,000, funded through internal
resources.  Net assets acquired amount to £250,000, subject to the finalisation
of completion accounts.


In line with the group's strategy the business will operate autonomously and be
relocated to the Coleshill distribution centre.


Enquiries:          Tony Brewer     Headlam Group Chief Executive

                    Steve Wilson    Headlam Group Finance Director

                    Tel : [phone]


End

20 September 2004


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