Holding(s) in Company

Headlam Group PLC
28 September 2006



Headlam Group plc - DISCLOSURE OF INTEREST IN SHARES

Headlam Group plc has today received the following notification in respect of
notifiable interests in the ordinary voting shares of 5p of the company.

We write to advise you that we, Schroder Investment Management Limited, have an
interest in 7,266,869 shares which are held in portfolios managed by us on a
discretionary basis for clients under investment management agreements.

Included in this figure are:-

(1) 4,633,587 shares held in unit trusts operated and managed by an affiliated 
    company, Schroder Unit Trusts Limited (SUTL), and registered or to be 
    registered in the name of Chase Nominees Limited;

(2) 25,100 shares registered or to be registered in the name of our wholly owned
    subsidiary nominee company, Schroder Nominees Limited (Schroder Nominees);

(3) 2,608,182 shares neither registered nor to be registered in the name of 
    Schroder Nominees Limited. The registration details are shown on enclosed 
    schedule A.

A fellow subsidiary, Schroder Investment Management North America Limited (SIMNA
Ltd), is managing a portfolio on a similar basis holding a further 1,200,000
shares. These shares are registered or to be registered in the name of Chase
Nominees Limited.

We believe that we and our fellow subsidiary are therefore interested in an
overall aggregate of 8,466,869 shares, representing some 9.726% of the total
number of shares in issue, namely 87,046,925.

This notification is made to you;-

(a) in respect of our own interest as investment managers,

(b) on behalf of SIMNA Ltd and SUTL in relation to any interests they are 
    treated as having respectively under the Companies Act 1985 (the Act), and

(c) on behalf of Schroders plc, our holding company, which is treated as having 
    an interest in all of the above shares under the Act by virtue of its 
    ownership of SIMNA Ltd, SUTL and ourselves.

Schedule A

Headlam Group plc

5p Ordinary shares

Registration                                        Amount

Bermuda Trust (Far East) Limited                     2,715

BNP Paribas Security Service                        38,100

British Coal Staff Superannuation a/c P            853,103

Chase Nominees Limited                             685,958

HSBC Global Custody Nominee (UK) Ltd a/c 771401     76,269

JP Morgan Bank Luxembourg SA                       102,252

Mineworkers' Pension Scheme a/c R                  849,785

Grand Total                                      2,608,182

28 September 2006

End


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