AGM Statement

Headlam Group PLC
23 May 2001


                                AGM STATEMENT

At  the  Headlam Group plc AGM held today, the Chairman made  the  following
comments on current trading:-

'Headlam  Group  has  made progress with the continued  development  of  its
floorcovering businesses and the restructuring of non-flooring activities.

The  early  months  of  2001  have shown another solid  performance  for  UK
floorcovering  distribution with sales up 4.3% on a like-for-like  basis  to
the end of April.

The European floorcovering distribution businesses are also trading well and
Gradus is showing an improved performance across all its activities.

The  restructuring of Eclipse is well progressed, and with  three  disposals
already  completed  the  divestment  of  the  fabric  businesses  is  almost
finalised.'

Enquiries:-

Gavin Anderson & Company                                   Tel:  [phone]
Graham Prince/Victoria Jackson