Disposal

Sirdar PLC
09 July 2007

Sirdar PLC ('Sirdar' or 'the Company')

9 July 2007

                              DISPOSAL OF PROPERTY

Sirdar today announces the disposal by its wholly owned subsidiaries, Sirdar
Spinning Limited ('Sirdar Spinning') and Ryalux Carpets Limited ('Ryalux
Carpets'), of the freehold properties at Bective Mills and Ensor Mill
respectively, to Stirling Investments (Sheffield) LLP ('Stirling Investments')
for a total cash consideration of £16.25m ('the Property Sale').

As set out in the Interim Report for the six months ended 31 December 2006, and
other recent announcements, the Company and its subsidiaries ('the Group') has
been undergoing a period of change and rationalisation which, amongst other
changes, has resulted in a reduction of the number of sites from which the Group
is operating.

The recent adverse market conditions in the residential floor coverings sector
have resulted in the Directors implementing a number of changes within the
Group's residential floor coverings business. One of the changes initiated by
the Directors has been the closure of a number of manufacturing sites and the
consolidation of these sites into centres of excellence. Once the process is
completed, currently expected to be by December 2007, the residential floor
coverings business will have been reconfigured from seven sites into three
centres of excellence. As a result of the restructuring, occupancy of Ensor Mill
(owned by Ryalux Carpets) will be gradually reduced over the six months from
completion, during which period Stirling Investments will allow Ryalux Carpets
to remain in occupancy under a short-term lease.

As stated previously, the Directors are exploring options to sell Sirdar
Spinning, the specialist yarns division of the Group. The Bective Mills site is
wholly owned and partly occupied by Sirdar Spinning, with other areas of the
site being occupied by the Company, the residential floor coverings business and
third party tenants. As part of the Property Sale process, the Directors have
made arrangements to lease back the areas of Bective Mills that are still being
used by the Group. These arrangements are set out in detail below.

The Directors consider that the Group should continue to focus on its core
business and accordingly have decided to sell the two properties and to use the
proceeds of the sale to repay debt, address the Group's pension deficit and
reinvest in the Group's operations. This is set out in detail below.

The completion of the Property Sale is conditional on the consent of the
Company's shareholders being given in a general meeting. Accordingly a circular
will be posted shortly to all of Sirdar's shareholders convening an
Extraordinary General Meeting at which shareholders will be asked to vote to
approve the Property Sale.

Further information on the Property Sale is set out below:

Bective Mills

Description of  Bective Mills, Flanshaw Lane, Alverthorpe, Wakefield.
the property
being sold

Current use of  This site is currently being used by the Company, the specialist
the property    yarns division, the floor coverings division and external
being sold      tenants.

Consideration   £13,250,000 payable upon completion.

Seller          Sirdar Spinning.

Purchaser       Stirling Investments.

Principal Terms The sale is conditional upon shareholder approval.
& Conditions
                On 29 June the Company entered into an agreement with Sirdar
                Spinning to lease approximately 135,000 square feet of the
                premises at Bective Mills for a period of ten years from 29 June
                2007. The annual rent payable is £420,160.

                Upon completion of the sale, Sirdar Spinning will enter into an
                agreement with Stirling Investments to lease approximately
                150,000 square feet of the premises at Bective Mills for a
                period of ten years. The annual rent payable is £555,574.

Ensor Mill

Description of  The property on the north side of Queensway, Rochdale known as
the property    Ensor Mill.
sold being                

Current use of  The site is currently occupied by the floor
the property    coverings division.
being sold

Consideration   £3,000,000 (plus VAT) payable upon Completion.

Seller          Ryalux Carpets.

Purchaser       Stirling Investments.

Principal Terms The sale is conditional upon shareholder approval.
& Conditions

Use of the Property Sale proceeds

The total net debt of the Group as at 31 December 2006 was approximately £4.9
million. The Directors intend to use some of the proceeds of the Property Sale
to reduce the level of debt and are currently in discussions with the debt
providers to determine the most appropriate way to restructure or repay this
debt.

The Group operates a defined benefit, final salary, pension scheme for certain
employees. The scheme is now closed to new entrants and accrual of salary
related benefits for current members has ceased. As set out in the Interim
Report, dated 29 March 2007, the net pension deficit of the Company at 31
December 2006 was £9.1 million. The Directors will consider using part of the
proceeds of the Property Sale to address this pension deficit and are in
discussions with the Trustees to determine how this is to be effected.

Further to recent investments in people, products and processes within the floor
coverings business, it is the intention of the Board to continue to grow this
area of the Group. An amount of the proceeds from the Property Sale will be
reinvested into modernising operating methods, rationalisation and upgrading of
the product range, re-branding and an increased focus on customer needs.

Current trading continues to be in line with the Directors expectations.

Further details of the Disposal will be set out in the circular that is shortly
to be posted to Sirdar's shareholders.

For further information please contact:

Sirdar PLC                                    01924 371501
Kevin Henry - Finance and Planning Director

Brewin Dolphin Securities                     0113 241 0130
Andrew Kitchingman
Sean Wyndham-Quin

ENDS



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