Acquisition Completed

Leeds Group PLC
23 December 1999


Leeds Group Expand European Activities Through Acquisition

Leeds Group plc ('the Company') is pleased to announce that it has completed
the acquisition of the business, goodwill and certain of the assets and
liabilities of Hemmers GmbH ('Hemmers') for a total cash consideration of
approximately £2.1 million.  Hemmers is a privately owned business based in
Nordhorn situated on the Dutch/German border and employs 40 people.  Its
principal activity is the import of printed fabrics from the Far East and
distribution to small and medium sized wholesalers throughout Europe.  The
activities complement those of Itex, the Company's Dutch based distribution
business, and the acquisition fits into the new management strategy of
expanding this activity in Europe.

In the financial year ended 31 December 1998, Hemmers reported profit before
tax of approximately £0.04 million.  For the year to 31 December 1999 it is
anticipated that, as a consequence of an increase in sourcing from the Far
East and the synergies expected between Hemmers and Itex the results will be
significantly improved.

The value of the net assets to be acquired, at completion, is expected to be
£1.4 million, including £1.6 million of net borrowings.  The consideration is
to be satisfied from the Company's existing facilities. 

Chris Marsden, Chief Executive Leeds Group plc said
'We are delighted to have made this acquisition, which we feel fits firmly
with our strategy of expanding our distribution activities within Europe'

Enquiries:

Chris Marsden                        Tel.:      [phone]
Chief Executive                      Mobile:    [phone]
Leeds Group plc

Malcolm Wilson                       Tel.:      [phone]
Finance Director                     Mobile:    [phone]
Leeds Group plc

Note:  The financial information has been translated from Deutschmarks using
the exchange rate at the close of business on 20 December 1999.