RNS Number:0200A
Sherwood Group PLC
20 March 2006



SHERWOOD GROUP PLC


Acquisition of Charnos lingerie brand


Sherwood Group plc ("Sherwood" or "the Group") is a designer and supplier of
ladies' intimate apparel, with a portfolio of brands comprising Lepel, Miss
Lepel, and Ted Baker Intimates


Sherwood Group announces that it has purchased the brand and assets of the
Charnos business from the administrators of Nelson I.A. Limited. The acquisition
was completed on 17 March 2006 for a cash consideration of #585,000.  The
acquisition is being funded out of cash resources and the consideration relates
to the purchase of the Charnos brand and its associated trademarks plus the
transfer of 44 staff.  The consideration comprises goodwill, stock, and fixtures
& fittings.


About Charnos

Charnos is a strong and recognised lingerie brand with over 50 years of heritage
and is distributed to over 500 customers I  n the UK.  The business had sales of
#4.3 million in the 12-month period to 31 December 2005 (Source:  Unaudited
management accounts from Nelson I.A. Limited).  Nelson I.A. Limited acquired the
Charnos brand in 2002 for a goodwill consideration of #1million from Charnos
Plc.  General Manager, Shaeren McKenzie, who will be transferring with the
business will join the operating garment board of Sherwood Group, bringing with
her extensive experience and sound managerial skills.


Charnos was voted 'Best Sexy Lingerie' in the Figleaves.com awards 2005.


Rationale for Acquisition

Sherwood Group is focused on becoming the leading provider of branded solutions
in the intimate apparel sector.  The acquisition of the Charnos business acts as
a perfect complement to the existing portfolio of brands and provides access to
a greater number of independent retailers where Charnos has a higher penetration
than current Sherwood brands.  Charnos is positioned amongst the aspirational
brands within the lingerie market and will broaden the reach of Sherwood brands.
The brand fits well with Sherwood's other brands - Lepel, Ted Baker, Discover
Mademoiselle, Miss Lepel and the newly launched Urban Nights.


The Charnos business will continue to have dedicated resource focused on design,
marketing, sales and brand account administration, but economies of scale will
be achieved by consolidating the existing, sourcing and merchandising teams with
other brands in Sherwood, putting all logistics and distribution through the
Sherwood facility together with centralising financial accounting.  Over time,
systems will be integrated to further improve performance. The integration of
the two operations will take place over the next six weeks.


Financial Impact

The cash consideration of #585,000 is funded out of available cash reserves and
an additional #250,000 has been provided for to complete the re-structuring and
integration of the business.  The current Charnos brand made an operating profit
of approximately #0.1million during its last financial year to December 2005
(source unaudited management accounts Nelson I.A. Limited)


Sherwood believes that sales achieved through the unwinding of the stock
purchased will cover the initial acquisition cost.  The administration of Nelson
I.A. Limited has affected customer and supplier confidence and may have a direct
impact on this current year's performance.  However, there is confidence in
returning Charnos to normalised profit through improved sales, margin and
operating costs.


Michael Hobbs, Sherwood Group Chairman, comments,


"This is a major step forward for the Sherwood Group and demonstrates the
ambition and confidence of its management team.  Charnos complements Sherwood's
current stable of brands.  Its market position and strong distribution through
the independent sector helps broaden the opportunity for all Sherwood brands."


                                                                  20 March 2006


ENQUIRIES:


Sherwood Group plc                       Tel: 0115 946 1070
Michael Hobbs, Chairman
Carol Duncumb, Chief Executive
Laurence Ford, Finance Director

KBC Peel Hunt                            Tel: 020 7418 8900
Matt Goode

College Hill                             Tel: 020 7457 2020
Gareth David








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

ACQEAXDXFSAKEFE