DMD Diamond Life.

RNS Number:1600Q
Drummond Group PLC
30 August 2000


Drummond Group plc ("Drummond" or "Company")

The Company on 25 August 2000 completed, subject to bank approval, the sale
of items of plant and equipment relating to the dyeing and finishing
operations previously carried out by its woollen division, John Crowther &
Sons (Milnsbridge) Ltd.

The disposal forms part of the confirmed strategy to withdraw from woollen
cloth manufacture, as outlined on page 6 of the Rights Issue circular to
shareholders dated 21 July 2000.  However, a trading agreement has also been
completed today with the purchaser, John Gladstone & Company Limited
("Gladstones"), under which Gladstones will become a supplier to Drummond,
enabling sales of woollen product to continue as before.

The sale consideration, which amounts to #700,000, is payable in 20 equal
quarterly instalments commencing in December 2000.  These proceeds will be
used to reduce bank borrowings.

The benefits expected to accrue from the transaction are:

-    reduced bank borrowings

-    the withdrawal from loss making manufacturing activity, whilst
     continuing to be able to generate sales from woollen products going
     forward.


FURTHER INFORMATION

Eric Finnie, Chief Executive, Drummond Group plc      01274 721 435

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