Holding in Company

Headlam Group PLC
20 October 2000



Headlam Group plc - Disclosure of Interest in Shares

Headlam Group plc announces that on 19 October 2000 it received the
following notification in respect of notifiable interests in the
ordinary voting shares of 5p of the company.

'We refer to the letter dated 25 May 2000, disclosing a Notifiable
Interest of the Zurich Financial Services Group and Zurich Allied AG,
both of Switzerland, and Allied Zurich plc, in the shares of your
company.

In accordance with the provisions of Section 198 Companies Act 1985,
we would inform you of a change to the notifiable interest over the
shares in your company. Zurich Allied AG has ceased to have a
disclosable interest whilst a disclosable interest has been acquired
by our sole ultimate holding company Zurich Financial Services,
incorporated and quoted in Sweden.

The Swiss incorporated company referred to in previous communications
to you as Zurich Financial Services has been renamed Zurich Group
Holding.

These changes all result from a simplification of the corporate
structure of the group's ultimate holding companies. As such, there
have not been any transactions in your shares that would otherwise
have required a notification. The current notifiable interest amounts
to 2,585,160 ordinary 5p shares.  Further details of this holding are
available on request.'