Leeds Group Regulatory News (LDSG)

Leeds Group Plc

("Leeds Group" or the "Company")

Trading Update

Leeds Group Plc, which imports and distributes fabrics through its German based subsidiary Hemmers-Itex Textil Import Export GmbH ("Hemmers"), provides an update on trading for the six months to 31 March 2010 prior to the release of the half year results.

At the time of the Annual General Meeting on 3 February 2010, the Company noted that revenue for the first three months of the current financial year was broadly in line with management expectations, margins had improved and the business was trading profitably.

Revenue in the six month period has remained strong in Hemmers' European business, whilst sales in its Chinese subsidiary are ahead of management expectations. Margins have continued at their improved level, both as a result of the actions taken by management last year and helped by some favourable foreign exchange movements. The Company therefore expects that the operating profit for the first half of the financial year will be ahead of management's expectations and significantly better than last year.

Enquiries:

Ewen Wigley Tel: 0113 391 9000

Leeds Group plc

David Foreman/Catherine Leftley Tel: 020 7107 8000

Seymour Pierce Limited