Hemmers to be Acquired

Leeds Group PLC
23 December 1999

                                Leeds Group Plc

                          Acquisition of Hemmers GmbH
                                       
Leeds  Group plc ('the Company') is pleased to announce that it has  completed
the  acquisition  of  the business, goodwill and certain  of  the  assets  and
liabilities  of  Hemmers GmbH ('Hemmers') for a total  cash  consideration  of
approximately  £2.1 million. Hemmers is a privately owned  business  based  in
Germany,  whose principal activity is the import of  printed fabrics from  the
Far  East  and  distribution to small and medium sized wholesalers  throughout
Europe.  The  activities complement those of Itex, the Company's  Dutch  based
distribution  business,  and  the acquisition fits  into  the  new  management
strategy of expanding this activity in Europe.

In  the  financial year ended 31 December 1998, Hemmers reported profit before
tax of approximately £0.04 million.

The  value of the net assets to be acquired, at completion, is expected to  be
£1.4  million, including £1.6 million of net borrowings. The consideration  is
to be satisfied from the Company's existing facilities.

Note:  The  financial information has been translated from Deutschmarks  using
the exchange rate at close of business on 20 December 1999.


Enquiries
Chris Marsden         Tel: [phone]
Chief Executive       Mobile: [phone]
Leeds Group Plc

Malcolm Wilson        Tel:[phone]
Finance Director      Mobile: [phone]
Leeds Group Plc