Acquisition

Headlam Group PLC
30 July 2007


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


For immediate release



                                                                    30 July 2007



Headlam Group plc



Headlam Group plc, Europe's leading floorcovering distributor, announces that on
27 July 2007 it acquired the trade and assets of Plantation Rug Company.

Plantation Rug Company is a supplier of rugs to independent retailers throughout
the UK and turnover for the year ended 31 March 2007 was £1,000,681.

Consideration payable in cash on completion is £250,000.  A further payment of
approximately £150,000 will be payable on 7 September 2007, following the
agreement of completion accounts.  This payment will include a goodwill figure
of £37,000.

Plantation Rug Company has been relocated and will operate autonomously from our
Stockport distribution centre. This acquisition will complement our existing
activities in rugs, principally through Crucial Trading and National Carpets.



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



End

30 July 2007






                      This information is provided by RNS
            The company news service from the London Stock Exchange