Alliance with Carlton

Sainsbury(J) PLC
24 May 2000


Sainsbury's and Carlton to launch a new food and drink
TV and internet site

Today, J Sainsbury plc announces another step in the roll out of its
e-commerce strategy, the signing of a memorandum of understanding with Carlton
Communications plc to form a joint venture in digital TV and on the Internet.

The joint venture will form the definitive food and drink portal in the UK,
with Sainsbury's providing extensive food and wine knowledge, technical
expertise and recipes from their new, about to be launched website as well as
home shopping through the revamped 'SainsburysToYou' service.  Carlton will
use its media assets, 'SimplyFood' and Carlton Food Network to promote and
sell e-commerce services in food and drink.

Sainsbury's will also provide fulfilment facilities to the joint venture
through 'Sainsbury'sToYou'. This relaunched home delivery service is about to
achieve a major step up in capacity with the opening this summer of a large
dedicated picking centre in Park Royal.  This new highly automated picking
centre is purpose-built to achieve significant home delivery capacity within
the M25.

Sainsbury's Group E-commerce director, Patrick McHugh said:

'This alliance is a 'new ground breaking' venture of two authoritative voices.
 It is the first time that a food retailer and media channel have joined
together to provide a comprehensive food and drink portal.  For Sainsbury's it
is another major step in our e-commerce strategy and gives us the opportunity
to speak to more potential customers with a passion for food.'

The joint venture will be owned by Sainsbury's and Carlton with both
businesses making a contribution.  Carlton will provide advertising and
Sainsbury's in-store promotion. Revenue will be generated from the TV channel,
the website and from 'SainsburysToYou' and other featured retailers.


Contacts:

Press Office: 020 7695 7295