Disposal

Headlam Group PLC
04 September 2002

Headlam Group plc ('Headlam')


Disposal of Windowcoverings businesses ('the windowcovering businesses')


Headlam announces that on Tuesday 3 September 2002 it completed the disposal of
the four trading companies comprising it's windowcoverings business, Eclipse
Blind Systems Limited ('Eclipse'), Eclipse-OPM Blind Systems AB ('OPM'), Vertika
International Limited ('Vertika'), and William O'Hanlon and Company Limited
('O'Hanlon's').

Eclipse and Vertika, based in Glasgow, are engaged in the marketing and
distribution of blind components to independent contractors and retailers. OPM,
based in Sweden manufactures and distributes materials for venetian blinds.
O'Hanlon's, based in Newtown, Powys, assembles, markets and distributes ready
made blinds and distributes soft furnishing products to the retail trade.

The companies were sold to the Dutch based Hunter Douglas group, the world
leaders in windowcovering.

Consideration payable in cash amounts to £12.1 million and includes the
discharge of intercompany balances amounting to £3.4 million. Furthermore,
Hunter Douglas will assume responsibility for the bank borrowings of the
windowcovering businesses, which at completion amounted to approximately £3.6
million.

As at 31 July 2002 the windowcoverings businesses had a net asset value of £10.4
million. In the twelve months to 31 December 2001 the turnover of the
windowcoverings businesses amounted to £35.0 million and operating profit
amounted to £2.2 million.

The disposal of the windowcoverings businesses will enable Headlam to
concentrate exclusively on the development of its floorcovering activities.


Enquiries

Headlam Group plc   01675 433000

Tony Brewer    Chief Executive

Steve Wilson   Finance Director

End


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