Acquisition

Headlam Group PLC
29 April 2002



                                                                   29 April 2002



                               Headlam Group plc




Headlam Group plc ('Headlam'), the leading UK floorcoverings distributor,
announces that on Friday, 26 April it acquired the business and certain assets
and liabilities of D J Hann Limited, a regional distributor of floorcoverings,
trading as D J Hann.


D J Hann will be relocated to Headlam's distribution centre in Newbury,
increasing it's residential and commercial market presence in the south east of
England, and is in keeping with the group's strategy of operating multiple trade
brands from existing facilities to achieve an enhanced market presence.


Initial consideration based on the net assets acquired was approximately
£500,000 subject to a further payment of a maximum of £300,000 once the net
asset position as at 26 April has been finalised.


Sales for the year ended 30 April 2002 are anticipated to be approximately
£2,800,000.


End

29 April 2002



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