Chairman's Statement

Headlam Group PLC
23 May 2000

                                                                   
                               HEADLAM GROUP PLC
                                 AGM STATEMENT

Commenting at today's Annual General meeting of Headlam Group plc, Trevor
Larman, Chairman said:

'The Group continues to make satisfactory progress.  Sales for the first four
months of 2000 in our core UK floorcovering distribution business are up 7% on
a like for like basis which is a clear indicator as to the strength of the
floorcovering market and is well in advance of market conditions experienced
in recent years.

The three business relocations planned for the first quarter of this year,
including the major move to a new purpose built freehold site in Coleshill,
Birmingham, have all been completed on schedule and without disruption to
their trading performance.
E-commerce is now very much part of our daily business and over 4000 orders
per week are now received through this medium.  With the rise in the number of
transactions conducted electronically it is inevitable that the cost of
handling the Group's average weekly intake of approximately 70,000 orders will
fall, ultimately reducing our transactions costs.'

For further information, please contact:

Julian Wilson                                Tel: [phone]
Gavin Anderson & Company