Disposal

HALSTEAD (JAMES) GROUP PLC
2 September 1999

                           JAMES HALSTEAD GROUP plc
                                       
                      DISPOSAL OF DRIZA-BONE PTY LIMITED

James Halstead Group plc announces the disposal of its wholly-owned
subsidiary, Driza-Bone Pty Limited, for a cash consideration of A$5.4 million
(£2.12 million) subject only to completion accounts to Outback Consortium Pty
Limited.

The sale marks James Halstead's exit from the Australian clothing market in
line with its strategy of concentrating on the core floor covering business.
The proceeds will be used to expand this business either through organic
growth or acquisitions.


Enquiries:     Geoffrey Halstead, Chief Executive
               James Halstead plc
               Telephone:     [phone]
          
               Nick Lyon
               Hudson Sandler
               Telephone:     [phone]