Disposal & acquisition-Amend

NWF Group PLC
02 November 2004


The following amendment has been made to RNS 7290E released at 07:00 today.

The announcement contained elements of draft text which have been removed.  The
full amended text is shown below.

FOR IMMEDIATE RELEASE TUESDAY, 2 NOVEMBER 2004


                                  NWF Group plc

      Disposal of Country Stores and Acquisition of Victoria Garden Centre


NWF Group plc ('NWF Group' or the 'Group'), the diversified sales and
distribution company, announces the completion of the sale of the business of
its five Country Stores to Countrywide Farmers plc and the acquisition of
Victoria Garden Centre.

The Country Stores are located at Wardle (Cheshire), Whitchurch (Shropshire),
Market Drayton (Shropshire), Melton Mowbray (Leicestershire) and Wrexham (North
Wales). The Whitchurch and Wrexham sites are freehold while the Wardle site
remains in the ownership of NWF with a lease granted to Countrywide. A sixth
Country Store on the Isle of Man has already been closed.

The aggregate initial consideration for the five Country Stores is approximately
£1.8 million (determined by stock valuation) in cash, with a further £0.6
million of deferred consideration payable on 1 November 2006. The closure of
Managrakem on the Isle of Man and the disposal of the five Country Stores will
incur goodwill write-offs of £0.8 million, which will result in an exceptional
net loss for the Group of approximately £0.6 million in the current financial
year.

At the same time, NWF Group announces the acquisition of Victoria Garden Centre
('Victoria') which is located near Wakefield in Yorkshire. Victoria was
established ten years ago. The consideration for the business and its assets is
estimated at £6.1 million (determined by stock valuation) of which £3.2 million
is deferred, spread equally over the next three years. This acquisition will be
financed by bank borrowings.

In the year ended 30 April 2003, Victoria's unaudited management accounts showed
revenues of £4.1 million, profit before taxation of £0.7 million and net assets
of £1.3 million.

The exit from the Country Stores and the acquisition of Victoria underline the
Board's strategy of focusing investment in the Group's retail division in the
expanding garden centre market.

Graham Scott, Chief Executive of NWF Group, commented 'I am delighted that we
have succeeded in repositioning our Retail division by the sale of our Country
Stores while at the same time demonstrating our commitment to building a major
force in the garden centre sector where we have expertise and where we believe
there are substantial opportunities for growth.'

For further information please visit www.nwf.co.uk or contact:

Graham Scott, Chief Executive               John West / Claire Melly
NWF Group plc                               Tavistock Communications
Tel: [phone]                          Tel: [phone]


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