Distribution Businesses

Leeds Group PLC
18 April 2002

Issued by Leeds Group plc

Date: Thursday 18th April 2002

Release: IMMEDIATE


                                Leeds Group plc

                       Merger of Distribution Businesses



Leeds Group plc announces that, subject to employee consultation, it intends to
merge the business activities of its Itex operation in Brummen, Holland into its
Hemmers subsidiary based in Nordhorn, Germany.

Although this action will involve initial cash costs of some €1.1m, it is
anticipated that this outlay will be substantially recovered from the proceeds
of the Dutch property that will become surplus to requirements. The directors
are also confident that the merger of the two companies will improve
profitability of the consolidated Hemmers business.

Subject to concluding the process of employee consultation, it is anticipated
that the merger will be complete by the end of the Group's current financial
year on 30 September 2002.





Enquiries:

Chris Marsden, Chief Executive

Malcolm Wilson, Group Finance Director

Leeds Group plc

Tel: [phone]




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