Disposal

Worthington Group PLC
04 July 2003


                              WORTHINGTON GROUP PLC

The Board announce that they have today exchanged contracts to merge the
finishing business of H. Armitage & Co (Armitage) with the dyeing and finishing
business of Drummond Parkland of England Limited (Drummond) to form a new
company, Indygo Limited (Indygo).

The contract is conditional upon the outcome of consultations with Armitage
employees and finalisation of the lease for the premises of Indygo. The contract
is expected to go unconditional on 31 August 2003.

Worthington will dispose of the business and goodwill of Armitage for £1. Stock
will be sold to Indygo at a value to be agreed at 31 August 2003, the value at
31 March 2003 was £12,000. Use of the plant and machinery currently used in the
Armitage business will be provided to Indygo on their premises under a five year
operating lease to be paid monthly in advance. The total amount chargeable under
the lease will equal the net book value of the plant and machinery at 31 August
2003 of £800,000.

The net book value of the plant and machinery was £900,000 at 31 March 2003.

The Armitage property at Eccleshill, Bradford will be vacated and available for
sale or redevelopment.

Worthington will subscribe £35,000 for a 35% shareholding in Indygo and Mr John
Taylor, chief executive of Worthington, will be appointed non-executive chairman
of Indygo. Mr Taylor will not have a service contract with Indygo.

Armitage was operated by Worthington on the basis of a break-even, producing a
positive cash flow after adding back the depreciation charge on plant and
machinery.

Increasing losses have forced a review of the position and this disposal will
remove the trading risks of the Armitage business and achieve ongoing rental
income and a share of Indygo.


Contacts:

Mr J R Taylor, Chief Executive, 01625 615108
Mr T G Roberts, Finance Director, 01625 660056


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