Statement re Homebase

Sainsbury(J) PLC
23 August 2000

                     J Sainsbury plc
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Sainsbury's examining strategic alternatives for Homebase

At the preliminary results at the end of May Sir Peter
Davis indicated that management was focussed on improving
profitability in the supermarket business and a key
objective was to improve shareholder value.  He also
stated that the company would be considering alternatives
to enable Homebase to accelerate its development plans by
examining partnerships or alliances.

Sainsbury's confirms it has had discussions with a number
of parties and is in the early stages of examining a
number of strategic alternatives for Homebase including
an alliance, disposal or joint venture.

Press enquires:
Pip Wood, Sainsbury           Tel: [phone]

Analyst enquiries:
Roger Matthews, Sainsbury     Tel: [phone]