Disposal

RNS Number:5009M
Ashley (Laura) Hldgs PLC
18 June 2003



                           LAURA ASHLEY HOLDINGS plc
                        ("Laura Ashley" or "the Group")


The Board of Laura Ashley Holdings plc announces that the Group has entered into
conditional Heads of Terms for the disposal of its operations in Switzerland,
Austria and Italy with EDMI Holdings SA for a consideration of Euro 2. Under the
Heads of Terms, the businesses being disposed of will enter into new separate
franchise agreements with the Group.

For the year ended 25 January 2003, the businesses being disposed of had
reported turnover of #6.6 million, a loss before tax of #1.3 million and
combined net assets of #0.02 million.

At the completion of the proposed transaction, it is expected that the
businesses being disposed of will have a net asset value of #0.9 million and the
cash impact to the Group's UK operations will be broadly neutral.

As at 25 January 2003, the Group had made provisions of #0.8 million to close 4
of the 10 stores which are the subject of this transaction.  The Group now
anticipates that additional provisions of approximately #0.2 million will be
required in respect of the closure of these 4 stores.  However, the directors
expect that these additional provisions together with a net asset write off of
#0.9 million, arising from the disposal, will be more than offset by premiums
which the Group has already received or anticipates receiving on disposal of
certain other of the Group's premises in Continental Europe.


Enquiries:

Iain Nairn                 Joint Chief Operating Officer       020 7880 5100

Tom Buchanan/              Brunswick Group Limited             020 7404 5959
Katya Reynier



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