Disposal Completed

Leeds Group PLC
18 January 2002

Issued on behalf of Leeds Group plc

Date: Friday 18th January 2002     IMMEDIATE RELEASE





                               Leeds Group plc


            Management Buy-Out of the UK Dyeing Division completed

  enabling the Group to focus on the growth opportunities identified within

                                Leeds Leasing






Leeds Group announced on 16 January 2002 that at the EGM held that day
shareholders approved the sale to the management team of Leeds' UK Dyeing
Division, which comprises Langholm Dyeing in Dumfries & Galloway and Schofield
Cloth Finishers in Galashiels. The Directors are now pleased to announce that
the transaction has been completed, with total consideration of £6 million of
which £4.45 million is in cash and the balance in Loan Notes.


The sale of the UK Dyeing Division is a further step towards completing the
Directors' strategy to exit UK textile manufacturing, and negotiations are
continuing in relation to the sale of the remaining UK textile business,
Sharps Fabric Printers.


Following the sale in 2000 of two Dutch subsidiaries, the Directors are
closely monitoring the performance of the remaining Continental textile
interests in order to ensure that the Group can optimise their value in the
future.


The cash proceeds from the MBO and a similar sum anticipated from the sale of
certain surplus properties will allow the Group significantly to reduce
indebtedness. The Directors intend in due course to seek the consent of the
High Court to a reconstruction of the Company's share capital, which would
allow it to repay capital to shareholders following the completion of the
re-alignment of the Group's activities.


The decision by the Board to concentrate on the development of its subsidiary,
Leeds Leasing plc, was reinforced by its continued substantial growth in
business volumes and profitability. In the year ended September 2001, the
lease book increased by 35% whilst profitability improved by 15%. With funding
arrangements in place to finance the planned growth, the Directors anticipate
that this trend will continue in the current year, which has begun in line
with expectations.


Chris Marsden, Chief Executive, Leeds Group said:


'The Board strongly believe the opportunity exists to transform the Group
through its clearly defined strategy into a financial services company
particularly by exploiting the already strong and successful niche market
position in this sector held by Leeds Leasing.'






Enquiries:

Chris Marsden, Chief Executive

Malcolm Wilson, Group Finance Director

Leeds Group plc

Tel: [phone]


Fiona Tooley

Citigate Dewe Rogerson

Tel: [phone]