Belcolor AG Flooring of Switzerland Acquired

Headlam Group PLC
27 January 2000



                   HEADLAM GROUP INCREASES EUROPEAN PRESENCE
                                       
Headlam Group plc ('Headlam'), a leading European floorcoverings and
furnishings distributor, announces that it has acquired the private Swiss
company Belcolor AG Flooring ('Belcolor') for £6.1 million cash.

Belcolor is the second largest floorcoverings distribution business in
Switzerland and is headquartered 80 kilometres from Zurich.  It provides a
comprehensive distribution service across all the regions in Switzerland from
three regional sales centres.  Belcolor's current management team will remain
in place and will help to develop Headlam's future business in other
Continental European markets.

For the year ended 31 December 1999 Belcolor achieved sales of approximately
£19 million.  The consideration of £6.1 million will come from Headlam's
existing cash resources and the acquisition is expected to be earnings
enhancing immediately.

Commenting on this announcement, Ian Kirkham, Chief Executive of Headlam,
said:

     'We are delighted to announce this purchase in Switzerland, which
     follows the successful integration of the L.M.S. business  in
     France last year.'
     
     'This move augments Headlam's presence in Europe and  represents
     the future development of our strategy to  expand  into  markets
     where there  is  a high degree of fragmentation and  considerable
     scope for further growth.'
     
     'We continue to look for appropriate European opportunities  to
     which we can add value, and in so doing benefit our suppliers,
     customers and shareholders.'
     
As  a result of this purchase, Headlam now has the leading market position in
the  United Kingdom and France, the number two position in Switzerland and is
growing its presence in the Netherlands.

For further information please contact:

Ian  Kirkham                                               Tel:  [phone]
Group Chief Executive, Headlam Group plc

Richard Mountain                                           Tel:  [phone]
Gavin Anderson & Company