New Property Joint Venture

Tesco PLC
15 March 2005


                    TESCO ANNOUNCES NEW PROPERTY JOINT VENTURE

Tesco today announced a new property joint venture to realise £366 million from
its UK property portfolio.

Joining forces with property group Consensus, Tesco has created an innovative
partnership that allows us to maintain a balance between the capital intensity
of holding a substantial, growing freehold portfolio and an element of leasehold
whilst providing the flexibility to release funds for programmed investment in
our existing business.

The 50/50 joint venture follows an earlier deal announced in March 2004.
Together these initiatives provide further flexibility and firepower to expand
and take full advantage of the growth opportunities available in all areas of
Tesco's business.

Announcing the deal Tesco Finance Director, Andrew Higginson said: 'We are
delighted to be joining forces with Consensus. This latest joint venture allows
us to release funds efficiently from our valuable property portfolio and at the
same time remain free to improve the stores for our customers by extending or
remodelling them.'

The joint venture takes advantage of the attractive levels within the debt and
equity markets and has achieved a highly competitive price reflecting an
effective initial yield of circa 5.2% p.a. The keen pricing was achieved through
a competitive two-stage debt and equity bid process run for Tesco by KPMG
Corporate Finance. The sole debt provider was Deutsche Bank AG London.

The transaction will include 12 Tesco stores and two distribution centres,
accounting for around 1.5% of Tesco property assets by gross floor area. The
joint venture is for a term of 27 years with an early termination option in
2015. The transaction also links the annual rental uplifts to a Limited Prices
Index calculated by reference to RPI collared between 1% and 3.5% per annum,
thereby hedging part of Tesco's fixed costs against its underlying business
revenue.

                                      ENDS

For further information:

Tesco plc:

Lucy Neville-Rolfe                    Tel: [phone]
Steve Webb                            Tel: [phone]
Jonathan Church                       Tel: [phone]

To contact the duty press officer out of hours please telephone [phone]
(option two from voicemail).

KPMG:

Michael Lindsay                       Tel: [phone]
Revathi Padmakumar                    Tel: [phone]
Kate Ryder                            Tel: [phone]

Consensus Business Group
Vincent Tchenguiz                     Tel:[phone]
Paul Taylor                           Tel:[phone]
Derek Gordon                          Tel:[phone]


Notes for editors:

1. Tesco has entered into a number of 50/50 property joint ventures in the UK
   prior to this transaction:

   • BLT Properties Ltd with British Land, owning 10 properties.
   • Tesco British Land Property Partnership with British Land, owning 2 -
     properties.
   • Tesco BL Holdings Ltd, with British Land, owning 9 properties.
   • Shopping Centres Ltd, with Slough Estates, owning 2 properties
   • Tesco Property Limited Partnership with Topland owning 35 properties

2. Consensus has entered into property joint ventures in the UK prior to
   this transaction, including:

   • Consensus with Hilton Hotel Group and Halifax Bank of Scotland owning 10
     hotels.

3. Consensus Business Group is a major investor in the UK real estate market
   having invested in excess of £1bn over the last 12 months. Consensus is
   ultimately controlled by the Tchenguiz Family Trust which includes the Rotch
   Property Group. Rotch Property Group has in excess of £4bn of real estate.





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