Alliance

Prudential PLC
12 April 2000


EGG ANNOUNCES TIE UP WITH BOOTS FOR COMBINED LOYALTY AND CREDIT CARD

Prudential's internet financial services company, egg, has teamed up with
Boots The Chemists to launch a combined loyalty and credit card.   Benefits
will include low interest rates and Boots Advantage points wherever the card
is used.  Holders of the new card will have additional reasons to shop at
Boots, use the Advantage Point Kiosks and visit Boots on the Internet.

Boots Advantage Card was launched in September 1997 using smart card
technology and offering a 4p in the pound benefit to cardholders.  There are
now 12 million card holders of which 8.5 million are regular users.  New
applications are running at a rate of 40,000 each week.
Egg was launched in October 1998 with a range of mould breaking financial
services products.  In its 18 months since launch, it has built up a customer
base of some 900,000.  Over 250,000 of these are credit card holders, acquired
since September 1999.

Boots and egg will work together to add low cost credit and ease and
efficiency of on-line application and servicing to the existing benefits of
the Advantage Card loyalty scheme.
From September existing Boots loyalty card holders will be able to apply for
an Advantage Credit Card which will serve both purposes.  Key consumer
features of the new credit card will be:

More points
- purchases in Boots stores earn four points plus one additional point per
pound spent.
- one point per pound earned on all other transactions using the card.
- extra one point per pound earned on transactions within the egg Shopping
Zone.

Less plastic
- a combined card with universal acceptability.
Low APR
- 10.9% for Internet users; 14.9% for other users.

Card holders will collect the points they have earned through the Advantage
Point Kiosks in Boots stores.  Access to monthly statements for on-line users
will be through the Boots Internet site.

Boots will retain operational management of the loyalty scheme and control all
marketing communications.  Card holders will be offered the chance to purchase
other egg financial services.

The principal business benefits for Boots will be in:
- Extending the consumer appeal of the Advantage Card.
- Extending use of the card beyond Boots stores.
- Strengthening customer loyalty through more points, more redemptions.
- Increasing usage of Advantage Point Kiosks in Boots stores - driving
footfall and transaction values.
- Creating new opportunities for electronic marketing through existing Kiosks
and the Internet.

Jonathan Bloomer, group chief executive of Prudential, said 'This new alliance
will build on the successful launch of the egg card and gives us the potential
to accelerate our rate of customer acquisition significantly.   This is a
great deal for egg and for Boots'.

Ken Piggott, managing director of Boots The Chemists said 'Boots and egg are
two powerful consumer brands.  We have brought together the unique rewards of
the Advantage Card loyalty scheme with an innovative, great value credit card.

It adds up to a compelling consumer proposition.  It is also the next step in
our strategy of building up a range of channels through which we can talk to
our customers and satisfy their individual needs'.

Mike Harris, chief executive of egg, said 'We are delighted to be announcing
this deal with Boots.  It is highly innovative, bringing together two brands
which are leading in their fields to bring great value to Boots customers'.


For further information contact:


Jeremy Reynolds
Group Media Relations Manager
Prudential plc
Tel: [phone]

Francis Thomas
Group Media Relations Manager
The Boots Company PLC
Tel: [phone]
Mobile: [phone]

Keith Whitesides
Director of Investor Relations
The Boots Company PLC
Tel: [phone]

From 0700 to 1300 hours on 12.4.00 media calls to Boots and egg on:
0171 374 2669

Press Conference
Boots and egg will be holding a press conference at 1030 hours at The City
Presentation Centre, 4 Chiswell St, London EC1Y 4UP.  You are invited to send
a representative.

Photocall
A photocall has been arranged for 0945 at the above venue.  You are invited to
send a photographer.

Notes to Editors

Boots The Chemists/egg Agreement
- BTC will offer a combined credit and loyalty card based on the credit card
issued by egg.
- The new card will be issued by egg who will be responsible for all
administration and operational costs, and credit risk/liability.
- Commissions payable by egg to Boots will cover all costs arising from the
operation of the scheme, including the cost of additional Advantage points.
- egg will offer a range of products to Boots customers including mortgages,
insurance and personal loans.  All marketing communications will be controlled
by Boots.
- Boots will receive a payment from egg for any new customer taking out the
combined credit card.  Boots will also receive commission on other egg
financial services bought through boots.co.uk
Financials
- Boots investment in the new credit card is £2 million in 2000/1, mainly on
consumer marketing.
Boots Developments
Over the last three years Boots has extended its reach and improved customer
communication by launching:

The Advantage Card
The Boots Advantage Card was launched in September 1997 using smart card
technology.  It now has 12 million card holders of which 8.5 million are
regular users (i.e. have used in last 3 months).  Applications are being
received at the rate of 40,000 each week.

Advantage Point Kiosks
Boots introduced interactive Advantage Point Kiosks in 1999 and now has Kiosks
in 370 stores.  Customers place their Advantage Card into the machine which
then generates tailored offers based on previous shopping patterns.  Use of
the Kiosks raises average transaction values and results in more frequent
store visits.

Health & Beauty Magazine
The Health & Beauty magazine is published quarterly by BTC to Boots most
valuable Advantage Card holders.  The two million reader distribution makes
'Boots Health & Beauty' Britain's biggest circulation women's magazine.

boots.co.uk
Was launched in 1996 as an information site.  In December 1999 the site went
transactional offering 2,500 lines from Boots existing mail order catalogues.
The inventory will expand significantly in 2000.
handbag.com

Was launched in October 1999 as a joint venture between The Boots Company and
the Telegraph Group.   It was the first complete UK Internet service designed
and built to satisfy the on-line needs of British women.   Since launch the
site has been visited by 500,000 individual users who are staying on-line for
approximately 10 minutes per visit.

Consumer Research
- 83% of existing users rate the Advantage Card as 'good' or 'excellent'.
- 83% of Advantage Card holders use a credit card.
- Almost 80% of those interested in a Boots credit card said they would be more
likely to apply for one if extra Advantage points were available.
- Over 50% of credit card holders have applied for a new credit card in the last
three years.
- 45% of Advantage Card holders have access to the Internet (25% at home, 20% at
work).

Source: Boots survey