Re Agreement

Tesco PLC
01 August 2002


TESCO

Turkish Capital Markets Board Announcement


Under Turkish Capital Markets Board rules, it is a requirement that an
announcement must be made at the initial stages of any possible venture.

As part of the ongoing international strategy to investigate developing markets
Tesco is in discussions with a regional retailer in Turkey.

Tesco has signed an Exclusivity Agreement with Kipa, a small but successful
retailer in Turkey, to enable the company to discuss possible partnerships in
the future. An announcement has therefore be made in Turkey today.

The Exclusivity Agreement lasts up until 30th November but can be extended if
required.


Notes:

  • Tesco entered Central Europe in '94 and Asia in '97 and is already
    profitable in 8 out of the 10 countries where it operates and is market
    leader in 6 of those countries.

  • Kipa has 5 hypermarkets in and around Izmir and over 1000 employees.


Contact:    Peter Bracher            01992 644237
            Tesco Press Office       01992 644645
            Out of hours             01992 644733, select option 5 from the menu




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