Agreement with Esso to Expand 'Tesco Express'

Tesco PLC
4 February 2000


                                       
              Tesco and Esso working to expand Express alliance.
             Potential for 4,000 jobs to be created across the UK.


Tesco and Esso UK, an affiliate of Exxon Mobil Corporation, today announced
their decision to work towards a definitive contractual agreement to expand
the Tesco Express alliance.  The Tesco Express alliance combines Tesco Express
quality groceries with Esso quality fuel.  If signed, the agreement would have
the potential to expand the alliance to approximately 150 sites over the next
three years.

Research has shown that customers are delighted with the combination of Tesco
quality groceries and prices and Esso quality fuel and value.  The eight trial
sites that have been operated for the past nine months have proved the need
for affordable good quality food in convenient locations.

Under the alliance Esso UK will be responsible for the fuel pricing and
marketing and the forecourt will be branded Esso.  Tesco will manage day-to-
day operation and grocery sales and the shops will be branded Tesco Express.

Tesco Chief Executive Terry Leahy said, 'Tesco Express is an outstanding
success with customers.  They love the convenience of quality food and fuel at
great value near at hand.  We have developed an excellent relationship with
Esso.  I am delighted we'll be creating up to 4,000 good jobs in an exciting
industry.'

27 Tesco Express stores already in operation today.


                               
Contacts:
Tesco Press Office:                Tesco Investor Relations:
Russell Craig  01992 644346        Steve Butler        01992 644800
Simon Soffe    01992 646143        Esso Media Relations:
Andrew Coker   01992 646739        David Eglinton (Tel)     01372 222261