Disposal

Headlam Group PLC
1 March 2001


Headlam Group plc ('Headlam')

Disposal of Gordon John Textiles and B S Brown

Headlam announces that on Wednesday 28th February 2001 it completed the
disposal of the business and assets less certain liabilities and excluding
cash balances of £250,000 of Gordon John Textiles, a business involved in the
merchant converting and distribution of soft furnishing fabrics, to the
existing management team.

The consideration for the disposal amounts to £2.0 million of which £1.4
million was paid on completion, £0.425 million will be paid on deferred terms
and the balance of £0.175 million satisfied by the issue of redeemable
preference shares, the redemption date for which is the 31st January 2002.

In addition Headlam announces that on Friday 12th January 2001, it completed
the disposal of the business and assets less certain liabilities and excluding
cash balances of £510,000 of B S Brown, a business involved in the
distribution of workwear fabrics to Pincroft Dyeing and Printing Company
Limited.

The consideration of £570,000 was approximately equal to the net assets with
75% paid on completion and the balance payable on final determination of the
net assets disposed.

The cash received on completion from both transactions will be applied to
reduce Headlam's borrowings.

End