Acquisition

Headlam Group PLC
09 October 2006


To : Company Announcements Office
Primary Markets Division
The London Stock Exchange
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For immediate release

                                                                9 October 2006

                               Headlam Group plc                               

Headlam Group plc, Europe's leading floorcoverings distributor, announces that
on 6 October 2006 it acquired Concept (Midlands) Limited.

Concept is a distributor of commercial flooring located in West Bromwich,
supplying flooring contractors throughout the Midlands.

Turnover for the year to the 31 December 2005 was £3,540,000 and profit before
tax £414,000.

Total consideration, payable from internal resources, is £1.75 million.  
£1.7 million was paid on completion, with a further £50,000 payable on the 
production of completion accounts as at 30 September 2006, confirming 
minimum net assets of £1,221,000.

Concept will operate autonomously from its existing location and will further
strengthen the group's position in the Midlands commercial flooring market.

Enquiries:          Tony Brewer     Headlam Group Chief Executive

                    Steve Wilson    Headlam Group Finance Director

                    Tel: [phone]

End

9 October 2006






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