Acquisition in the US

Sainsbury(J) PLC
22 November 2000

Sainsbury's expands in the US

Shaw's, Sainsbury's subsidiary in the USA, has provisionally acquired 18 Grand
Union stores in Vermont (12 stores) and Connecticut (6 stores).  Total annual
sales from these stores is circa $150m.

Grand Union recently filed for bankruptcy and C&S Wholesalers led a consortium
of retailers, including Shaw's, to bid for the assets of the company.  The
proposed bid is subject to final Court and FTC approval and is unlikely to be
completed before January 2001.

Ross McLaren, President of Shaw's said 'This acquisition presents us with a
wonderful opportunity to strengthen our position in Connecticut where we  have
20 stores, and gain a significant presence in Vermont where we have only two
stores'.

Sir Peter Davis, Group Chief Executive of J Sainsbury plc said 'Since we first
acquired an interest in Shaw's in 1983 it has become a significant company
with revenues of circa $4 billion.  It is the twelfth largest US food
retailer.  Our integration of Star Markets continues to go well and this
latest acquisition will increase our presence substantially in these two key
states.  Shaw's is a good business and gives us a strong regional position in
this stable market with good prospects'.

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