Disposal

RNS Number:1574A
Gaskell PLC
20 August 2002


Issued by Citigate Dewe Rogerson Limited, Birmingham

Date: Tuesday 20th August 2002

                                                               Embargoed: 7.00am



                     Gaskell PLC ("Gaskell" or "the Group")

      Sale of Mid-Wales Yarns Limited ("Mid-Wales Yarns" or "the Company")



The Board of Gaskell is pleased to announce today that it has completed the sale
of its wholly owned subsidiary Mid-Wales Yarns to Fred Lawton & Son (Holdings)
Limited ("Fred Lawton" or the "Purchaser") for a nominal sum.

The Purchaser will acquire the Company, free of bank and inter-company debt, for
a cash consideration of #1. Gaskell will warrant that the minimum net assets at
completion will be #1.70 million, with minimum net current assets of #0.30
million. Also as part of the disposal agreement Gaskell will loan Mid-Wales
Yarns on an interest free basis #0.25 million repayable in instalments up to
December 2003.

Background to and benefits of the transaction

Gaskell's principal activity is the manufacture of carpet tiles and broadloom
carpets, in which it enjoys a leading position in the UK contract market.
Gaskell acquired Mid-Wales Yarns as part of its acquisition of Tomkinsons plc in
September 1999.

Mid-Wales Yarns is a yarn spinner based in Llandrindod Wells, Powys. In the 6
months to 30 June 2002 the Company has made an operating loss of #0.35 million
on a turnover of #2.03 million. In the previous full year the Company reported
an operating profit of #0.21 million on sales of #5.36 million when activity
levels were substantially higher. Had this disposal not taken place, it is
likely that the Company would have been closed down with the loss of
approximately 100 jobs.

On 26 March 2002, Gaskell announced its intention to focus on its core contract
carpet tile and contract broadloom activities by exiting from its non-core
businesses. The sale of Mid-Wales Yarns along with the recent sale of Crucial
Trading which was announced on 5 June 2002, is part of this refocusing of the
Group.


Alan Chamberlain, Chairman of Gaskell commented:

"The recent disposal of Crucial Trading along with today's announcement
regarding the sale of Mid-Wales Yarns, continues our strategy of exiting from
operations not considered core to the Group's future direction and focus. The
disposal of its non-core activities will allow Gaskell to concentrate the Group
on the manufacture and distribution of contract carpet tiles and contract
broadloom carpets where the Group is a leading player in the UK market."




Enquiries:
Gerry Wheeler, Chief Executive                     Alan Cooke, Account Manager
Richard Hopkin, Group Finance Director             Katie Dale, Account Executive
Gaskell PLC                                        Citigate Dewe Rogerson
Tel: [phone]                                  Tel: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
DISEAPPNFSLAEFE