Disposal

Leeds Group PLC
12 March 2003

Issued on behalf of Leeds Group plc
Date: Wednesday, 12 March 2003

                                                               Immediate Release

                                Leeds Group plc

Leeds Group (the 'Group') completes its exit from textile manufacturing with the
disposal of Nemesis S.p.A ('Nemesis')



Leeds Group plc announces that today it completed the disposal, for a nominal
consideration, of the entire issued share capital of its Italian subsidiary,
Nemesis, to Mr M Cuccurullo, the Managing Director of Nemesis, and Nanuet
Embarcacoes De Recreio Lda, a company controlled by Mr M Cuccurullo.

Nemesis is involved in the printing of textiles primarily used within the garden
furnishings market. In the years ended 30 September 2001 and 2002, Nemesis
incurred losses before tax and exceptional items of £0.4 million and £1.0
million on sales of £15.8 million and £13.0 million respectively. In addition,
exceptional costs of £3.4 million were recognised in 2001 in respect of a fixed
asset impairment as required by FRS 15, whilst exceptional restructuring costs
of £0.2 million were charged in 2002.

The anticipated loss on the disposal of Nemesis will be approximately £4.9
million, prior to writing off recycled goodwill of £7.9 million arising on the
original acquisition. The net assets of Nemesis at the date of disposal are
expected to be approximately £4.4 million.

In the first four months to 31 January 2003 of the current financial year, the
Directors regard the trading performance of the Group's continuing businesses,
comprising Leeds Leasing plc and Hemmers-Itex, to have been satisfactory.
Consolidated Group profit before tax and exceptional items amounted to £0.6
million, compared with £0.2 million for the equivalent four-month period last
year and £0.2 million reported for the six months ended 31 March 2002.

As a consequence of the disposal of Nemesis, the consolidated net Group debt
will be reduced by approximately £4.9 million to approximately £9.6 million.
This amount is net of cash deposits in excess of £6.5 million, which have arisen
following the divestment activity of the last two years.  Of the net Group debt
of £9.6 million, the Leeds Leasing plc debt amounts to approximately £13.2
million.

The disposal of Nemesis is a related party transaction under the AIM Rules. The
Directors of Leeds Group plc consider, having consulted its Nominated Adviser,
KPMG Corporate Finance, that the terms of the disposal of Nemesis are fair and
reasonable insofar as its shareholders are concerned. In giving its advice to
the Directors of Leeds Group plc, KPMG Corporate Finance has taken into account
the Directors' commercial assessments.

Malcolm Wilson, Group Managing Director, Leeds Group plc commented:

'The disposal of Nemesis completes the Group's declared strategy of withdrawing
from textile manufacturing in order to focus on our successful UK finance
leasing operation, Leeds Leasing plc.'

'Further, although Nemesis has traded profitably in the current financial year,
it is a seasonal business that recorded losses before tax and exceptional costs
of £0.9 million in the second half of each of the past two financial years, and
the disposal therefore improves the Group's trading outlook for the remainder of
this year.'

The Board is presently investigating the possibility of implementing a capital
reconstruction of the Group with a view to returning excess capital to
shareholders. Any such reconstruction is likely to require the consent both of
shareholders and of the High Court. Further details will be provided to
shareholders as soon as practicable.


Enquiries:

Malcolm Wilson, Group Managing Director
Dawn Bowler, Group Finance Director            Fiona Tooley                 Bob Bigley
Leeds Group plc                                Citigate Dewe Rogerson       KPMG Corporate Finance
Tel: [phone]                             Tel: [phone]           Tel: [phone]
                                               or 07785 703523


KPMG Corporate Finance, a division of KPMG LLP, which is authorised by The
Financial Services Authority for investment business activities, is acting for
Leeds Group plc as nominated adviser and is not acting for any other person.
KPMG Corporate Finance will not be responsible to anyone other than Leeds Group
plc for providing the protections afforded to its clients or for providing
advice in relation to the contents of this document or any transaction or
arrangement referred to herein.


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