RNS Number:2134P
Ashley (Laura) Hldgs PLC
01 September 2003



                                                                1 September 2003





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



Laura Ashley Holdings plc announces that it has agreed the sale of its
operations in Belgium, Luxembourg and the Netherlands to Laben Holding BV for
Euro 2.  This sale relates to companies owning three stores in Belgium, one in
Luxembourg and seven in the Netherlands.  The purchaser will enter into a
single, renewable franchise agreement with the Group lasting an initial four and
a half years.



For the year ended 25 January 2003 the businesses being disposed of reported
turnover of #6.7 million and a loss before tax of #2.2 million.



It is expected that the businesses being disposed of will have a net asset value
of #1.5 million and the cash impact to the Group's UK operations will be broadly
neutral.



This disposal is part of the Group's strategy, announced in January 2003, to
withdraw from its European operations whilst securing franchise agreements for
stores in Continental Europe where possible.  Since January, the Group has
closed 33 stores (one in Holland, one in Belgium, four in Austria, seven in
France, and 20 in Germany). Six stores remain open in France.  Four are expected
to close by November 2003 and the Group is currently in negotiations for the
sale and franchise of the remaining two stores in France.



In June 2003, Laura Ashley announced it had entered into conditional Heads of
Terms for the disposal and franchise of six stores in Switzerland, Austria and
Italy to EDMI Holdings SA.  Discussions are ongoing to finalise the sale and
purchase agreement.



Upon successful completion of all of the above negotiations, Laura Ashley
Holdings plc will have completed its exit from Continental Europe.





Enquiries:

David Cook                       Chief Financial Officer           020 7880 5100

Tom Buchanan/                    Brunswick Group Limited           020 7404 5959
Katya Reynier




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