Trading Statement

    14 March 2007 - for immediate release

       Lambert Howarth Group p.l.c. ("Lambert Howarth" or "the Company")       

         Trading update, strategic review and appointment of advisers          

Trading conditions have remained challenging since the Company reported its
half-year results to 30 June 2006, on 28 September 2006. The Company expects to
report results for the year ended 31 December 2006 in line with market
expectations.

 

Trading in the first two months of the current financial year, which are
normally a quiet trading period for the business, has continued to be
difficult, although management is confident that the healthy first half order
book will be converted into profitable sales over coming months, making up much
of this shortfall.

 

The Company's organisational and strategic restructuring, announced in
September 2006, is well underway, as a result of which a number of significant
organisational and operational changes have been announced.

The Company will shortly announce the appointment of a new Group Finance
Director. John Gibson is to retire from the Group in May, after 10 years'
service.

 

There are three key appointments to the newly created roles of Group Supply
Chain Director, Managing Director - Homeware Division and International Sales
Director.

 

John Suirdale, Group Supply Chain Director (Board Director Designate), joined
the Company on 12th February 2007. He has a wealth of supply chain, licensing
and brand experience and has previously held senior roles at both Burberry and
Alfred Dunhill.

Kevin Black, assumed the role of Managing Director - Homeware Division,
following an effective period as Interim Managing Director of the Natural World
business from September 2006. He has previously worked as an Interim Director,
and has several high-profile turnarounds to his name.

 

Christian Dieng, International Sales Director joins the Company on 16th April
2007 from Falke where, as Commercial Director, he led an extremely successful
development team. He has previously worked for Harrods and Lotto GmBh.

 

Other operational changes were announced internally on 9th February 2007, which
the management believes will help to reposition the business, whilst reducing
costs through increased efficiencies. These include amalgamating the Finance
and Shipping functions of the Group and the UK Homeware Division in the Burnley
offices, alongside those of the new Group third party logistics provider,
Christian Salvesen, and the opening of a new office in Shanghai in April 2007,
which will further strengthen the Group's Far Eastern sourcing capabilities, in
particular for soft accessories and the Homeware Division.

  

The Company has appointed PricewaterhouseCoopers Corporate Finance to act as
its financial adviser. In conjunction with its advisers, the Board intends to
review its strategic options, and these may involve the raising of new equity.

 

The Company will announce its full year results for the year ended 31 December
2006 by 30th April 2007.

Enquiries:

Lambert Howarth Group p.l.c. 020 7258 9988

Fred Vinton, Chairman



END