Disposal

Leeds Group PLC
31 October 2000

                                 LEEDS GROUP PLC

                  DISPOSAL OF DUTCH SCREEN ENGRAVING BUSINESS

Leeds Group plc announces that yesterday it completed the sale of Panhuizen BV
to its management, who have the backing of ING Bank. Panhuizen BV engraves
screens for use on rotary printing machines for fabric and wall coverings, and
was wholly owned by Leeds Group plc through its Dutch subsidiary CLG Holding BV.

The consideration comprises an initial cash payment of Dfl 3.25 million
(£858,000). In addition deferred consideration of Dfl 250,000 (£66,000) is
payable, dependent on certain performance criteria being reached. Furthermore,
trading balances due from Panhuizen BV to Leeds Group companies amounting to Dfl
1.49 million (£393,000) were paid in cash at completion.

Panhuizen BV earned pre-tax profits of Dfl 552,000 (£146,000) in the year ended
30 September 1999, and Dfl 450,000 (£119,000) in the year ended 30 September
2000, at which date Panhuizen BV had net assets of Dfl 3.1 million (£818,000).

Following this disposal, and the disposal last May of its Campo transfer
printing paper business, the remaining subsidiaries of CLG Holding BV are now
exclusively involved in the European distribution of imported printed fabric,
conducted through the Itex business in Holland, and through Hemmers, the German
business acquired in December 1999. Proceeds from the disposal of Panhuizen will
be used to reduce the debt of CLG Holding BV, which increased following its
acquisition of Hemmers.

Commenting on the disposal, Chris Marsden, Leeds Group Chief Executive, said:
'Panhuizen remains a profitable business, and I believe that this management
buyout will give it the greatest scope for future development. The disposal of
Panhuizen marks a further step in our recovery strategy for Leeds Group, and
will enable us to focus on those businesses which will deliver sustainable
shareholder value for the future.'

Sums expressed in Dutch Guilders (Dfl) have been translated to Sterling at the
rate of £1 = Dfl 3.79.

Enquiries
Chris Marsden, Chief Executive
Malcolm Wilson, Finance Director

Leeds Group plc
Tel.: [phone]