Acquisition

Headlam Group PLC
04 April 2005


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

For immediate release

                                                                    4 April 2005


Headlam Group plc


Headlam Group plc, the leading UK floorcoverings distributor, announces that on
1 April 2005 it acquired the retail division of Gaskell Flooring Limited,
trading as Gaskell Wool Rich and Tomkinson Carpets.

Gaskell Wool Rich and Tomkinson Carpets are suppliers of residential carpets to
independent floorcovering retailers and department stores within the UK.

Consideration payable in cash on completion is £425,596 for tangible assets
acquired of £425,596.

In line with the group's strategy the businesses will operate autonomously and
be relocated to its new distribution centre in Tamworth.

Enquiries: Steve Wilson Headlam Group Finance Director
Tel : [phone]

End
4 April 2005




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