Acquisition

Headlam Group PLC
3 December 2001


                                                               3 December 2001


                              Headlam Group plc


Headlam Group plc ('Headlam'), the leading UK floorcoverings distributor,
announces that on Friday, 30 November it acquired certain assets, liabilities
and goodwill of Floorsales (Ireland) Limited trading as Floorsales.

Floorsales, a regional commercial floorcovering distributor based in Northern
Ireland, is situated adjacent to and complements an existing Headlam
residential floorcovering distribution business.

It is the intention that during the first half of 2002, Floorsales and the
existing Headlam business will be relocated to a new warehouse and
distribution facility. In keeping with Headlam's operating strategy, both
businesses will be operated to preserve their independent identities.

Initial consideration based on the net assets acquired was approximately 
£420,600 including a payment for goodwill amounting to £25,000 in cash, subject
to a further small payment once the net asset position as at 30 November has
been finalised. Sales for the year ended 31 October 2001 were approximately 
£1,800,000.


End