Tesco - Low-cost Home Calls

Tesco PLC
01 September 2003


                TESCO TALK LAUNCHES WITH LOW-COST CALLS FROM HOME

Tesco Talk launches three great value-for-money phone tariffs today - with
Clubcard points on all calls.

All three tariffs offer highly competitive rates so customers can save on their
home phone call charges whatever their usage. For example a customer on Tesco
Talk 1, designed for light users, could save 30 per cent*, or nearly £40 a year,
when compared to the BT Standard tariff.

Andy Dewhurst, CEO of Tesco Telecom said: 'By switching to Tesco Talk, BT phone
users could slash the price of their monthly home phone calls by up to 30 per
cent. By providing competition we will encourage our customers to look hard at
their bills and shop around as they already do for things like car insurance.

'Customers have told us they want savings on their phone calls from a brand they
can trust, without compromising quality or service. Our trial in East Anglia
gives us confidence that Tesco can be successful in this market.'

Customers who phone abroad could also see their phone bill cut as Tesco Talk is
cutting the price of calls to only 4p a minute for 10 popular destinations for
all three tariffs, what ever the time of day (Australia, Canada, France,
Germany, Ireland, Italy, Netherlands, Spain, Switzerland and USA).

Tesco Talk takes the hassle out of switching - simply visit www.tesco.com, call
0845 300 70 80 or pick up a leaflet in store to apply. It's as easy as anything
to switch.

                                      Ends

For further information please contact:

Press:                       Lucy Neville-Rolfe            01992 644141
Investor relations:          Steven N Butler               01992 644800


Notes to editors:

* Based on average monthly call charges calculated by Tesco in Aug 03 for Tesco
Talk 1,2 & 3 compared to BT Standard, BT Together Options 2 & 3 (excluding
Friends and Family) using call profile from Cable & Wireless June 03 & OFTEL's
Fixed Line Market Information Update May 03. See www.tesco.com for details.






                      This information is provided by RNS
            The company news service from the London Stock Exchange