Disposal Completed

Leeds Group PLC
16 May 2000


LEEDS GROUP PLC

DISPOSAL OF DUTCH TRANSFER PRINTING PAPER BUSINESS

 
Leeds Group plc announces that yesterday it completed the sale of its Dutch
Campo business to an investor group led by the current general manager. Campo
prints paper for use in the fabric transfer printing industry, and is the
manufacturing division of Brummen International BV, indirectly wholly owned
by Leeds Group plc through its Dutch subsidiary CLG Holdings BV.  
 
The consideration comprises an initial cash payment of eight million Dutch
Guilders (£2.2 million). In addition deferred consideration of two million
Dutch Guilders (£0.55 million) is payable, dependent on certain performance
criteria being reached. Proceeds from the disposal will be used to reduce the
Group's borrowings, which increased in December following the acquisition of
the German fabric import and wholesale company Textilgrosshandel Hemmers
GmbH. 
 
Campo incurred an operating loss of 1.3 million Dutch Guilders (£357,000) in
the year ended 30 September 1999, and in the six months ended 31 March 2000
is expected to incur further losses of approximately 200,000 Dutch Guilders
(£ 55,000). The net assets sold are carried in the books of Brummen
International BV at approximately ten million Dutch Guilders (£ 2.75
million). 
 
Commenting on the disposal, Chris Marsden, Chief Executive, said: 'This
disposal, and the earlier acquisition of Hemmers, reflect a continued focus
on the core businesses which underpin our future strategy.' 
 
Sums expressed in Dutch Guilders have been translated to Sterling at the rate
of 3.64. 
 
 
 
 
Enquiries: 
Chris Marsden, Chief Executive 
Malcolm Wilson, Finance Director 
Leeds Group plc 
Tel: [phone]