Acquisition

Tesco PLC
7 August 2001

                          THE NUTRI CENTRE AT TESCO


Tesco has bought a majority stake, 50.1%, for the net sum of £2.93 million, in
The Nutri Centre, the specialist mail order and retail group, it is announced
today.

The move is the first major investment into the Complementary Medicine market
by a global retailer.

The Nutri Centre founder and current owner, Rohit Mehta, becomes the Tesco
Healthy Living Consultant, and will continue managing the business following
the deal signed today.

The Complementary Medicine market, predicted to be worth over £300 million in
the UK by 2003, is expected to grow at some 15% per annum as alternative
therapies and treatments become more mainstream amongst British customers and
health practitioners. The market has more than doubled in the last five years.

A range of 85 Nutri Centre@Tesco products will be available initially in 50
Tesco stores from 7th August; a roll-out plan to over 200 stores is being
finalised. The full range of over 22,000 products will be available through a
new mail order catalogue alongside information leaflets in the stores.

Customers will be able to make orders by telephone for home delivery.
Additional plans are underway to offer access through the Tesco.com web-site.

Tesco believe the UK Complementary medicine market is set to expand. British
consumers still spend significantly less than their American and European
counterparts on alternative therapies and treatments.

Said Tim Mason, Tesco Marketing Director, 'Customers tell us they want to live
a healthier lifestyle so demand for natural products is booming. Our link with
the Nutri Centre will give customers access to an exciting range of
complementary medicine - catering for all their needs and opening up a whole
new market to Tesco.'

Rohit Mehta said 'Our link to Tesco will bring natural products to the mass
market. Customers will now have the experience of the Nutri Centre@Tesco in
their local store.'



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