Acquisition and Disposal

Headlam Group PLC
5 March 2002

Headlam Group plc ('Headlam')


Acquisition of Betrex Flooring Supplies ('Betrex')


Headlam announces that on Friday 1 March 2002 it acquired certain stock and
fixed assets of Betrex.


Betrex is located close to Birmingham City Centre and will be linked to the
major Coleshill distribution centre to increase penetration into the West
Midlands commercial floorcovering market.


Cash consideration based on the net assets acquired was £105,000.


Disposal of Edinburgh Weavers


In addition Headlam announces that on Tuesday 5 March 2002 it completed the
disposal of the business and assets less certain liabilities of Edinburgh
Weavers, a business involved in the merchant converting and distribution of soft
furnishing fabrics.


The consideration for the disposal amounts to £380,000 of which £200,000 was
paid on completion, £111,000 being applied to discharge bank borrowings, with
the balance of £180,000 satisfied by the issue of redeemable preference shares.




Enquiries:     Gary Phillips     Headlam Floorcoverings Divisional Finance
                                 Director

                                 Tel : [phone]


End



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