Update on current trading

Leeds Group PLC
29 April 2004

Issued by Leeds Group plc
Date: Thursday, 29th April 2004                                Immediate release

                    Leeds Group plc ('Leeds' or 'the Group')
                                        
              Update on current trading and strategic development

The Directors of Leeds announce that the trading performance in the Group's two
businesses remains broadly in line with the position outlined in the Chairman's
AGM statement published on 25th February 2004.

Sales and profitability continue to be extremely satisfactory in the
Hemmers-Itex division, which has successfully integrated the small bolt-on
wholesaling operation acquired in February 2004. Profitability in Leeds Leasing
continues to be restricted by the nature of new business, which although a
little ahead of the equivalent level last year, continues to comprise a mix that
leads to a lower average yield.

Group profit before tax and exceptional items for the six months ended 31 March
2004 amounted to £0.4 million and full interim accounts will be published during
May. These interim accounts will include an exceptional provision in respect of
amounts payable by Langholm Dyeing Company Limited, who in January 2002 acquired
the Group's UK Dyeing Division for £4.5m in cash and a £1.6m Loan Note. Langholm
has experienced very challenging trading conditions in recent months, and it has
now become clear that the Company will not be in a position to begin its
scheduled repayments to Leeds that are due to begin in February 2005. While
Langholm takes measures to address its present volume-related problems, the
Directors of Leeds consider it prudent to provide fully for the Loan Note.

In the light of current trading trends, the Directors have reviewed the Group's
strategic development options, and have concluded that in today's market
conditions where high street banks and other major funders are ever more active,
Leeds Leasing needs to become much larger than can be achieved through organic
growth.

The Directors have, over the past few weeks, conducted discussions with a number
of parties having a possible interest in the Group's two separate businesses,
with the intent of returning sales proceeds to shareholders. In addition,
discussions have also begun with a third party that may or may not lead to an
Offer for the Group as a whole. The Directors are determined to deliver maximum
value to shareholders through this divestment process.

The Board having now agreed upon this strategy, Mr. Bill Cran, Leeds Group
Chairman, has advised the Directors that he intends to make an Offer for Leeds
Leasing, and to avoid any possible conflict of interest, has resigned from the
Board with immediate effect. The continuing Directors would like to thank Bill
for his support and guidance since becoming Chairman in February 2002.

We will continue to keep shareholders updated with any developments.

Enquiries:
Malcolm Wilson, Group Managing Director
Dawn Bowler, Group Finance Director        Fiona Tooley
Leeds Group plc                            Citigate Dewe Rogerson

Tel: [phone]                         Tel: [phone] or 07785 703523



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