Disposal Agreement, etc.

HEADLAM GROUP PLC
14 October 1999
                                      
                                      
                 Headlam Constructing Largest Floorcoverings
                        Distribution Centre in Europe
                                      
Headlam Group plc ('Headlam'), the leading UK floorcoverings and furnishings
distributor,  has  agreed  terms to dispose of the freehold  site  currently
occupied  by  its  West  Midlands floorcoverings business  to  the  adjacent
occupier for the sum of £2.6 million.

Headlam's floorcoverings business will be transferred to a new purpose built
135,000 square foot distribution and divisional head office centre currently
under  construction at Coleshill, Birmingham at an estimated  cost  of  £7.8
million.   On  completion,  this  facility will  be  the  largest  dedicated
floorcoverings  distribution centre in Europe and will  store  approximately
one  million square metres of carpet.  The project is due for completion  in
Spring 2000.

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

     'By  moving  into  this  new  distribution  centre  we  will  be
     providing  our  customers with an even more  efficient  service.
     This  will  further increase our already formidable distribution
     capability and will allow us to grow our market presence in  the
     Midlands.'


Enquiries:

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

Gavin Anderson & Company
Richard Mountain                                            Tel: [phone]