Statement re: Safeway Plc

Statement re: Safeway Plc 

    LONDON--(BUSINESS WIRE)--June 24, 2003--

                 TESCO RESPONSE TO REMEDIES STATEMENT

Tesco today acknowledged the provisional views and range of possible
remedies reached by the Competition Commission covering the potential
bids for Safeway.

Chief Executive, Sir Terry Leahy, said: 'We note that no final
decisions have yet been made by the Commission, who are due to report
their findings to the Secretary of State on 12 August 2003.

'We welcome the opportunity to comment on the issues and possible
remedies before the Commission reaches its conclusions about the
proposed bids.

'As we have previously stated, and as the Commission notes, the
current proposals affecting the future of Safeway raise serious issues
as to whether a structural change, which could see the four major
retailers become three, should be permitted. Although the hurdle for
consolidation for any of the national players seems to be high, if
such a restructuring were to be permitted, we have always said that
Tesco would be best placed to lead this change. We are a consumer
champion with a world class management team and experience of running
a range of store types and sizes and this would be sustained after any
acquisition.

'No matter what happens we will remain focussed on delivering the best
for our customers. This has been demonstrated by our strong group
sales growth of 15.1% in the first quarter of the year. Our clear
four-part strategy continues to drive growth in food, non-food, and
retail services and to develop our business internationally.'

Enquiries:

Tesco
Lucy Neville-Rolfe                                 [phone]
Steven N. Butler                                    [phone]

Greenhill & Co. International LLP                  [phone]
(Financial adviser to Tesco)
Simon Borrows
David Wyles

Morgan Stanley                                     [phone]
(Financial adviser to Tesco)
Simon Robey
Mark Warham
                                                   
Cazenove & Co. Limited                             [phone]
(Joint brokers to Tesco)
John Paynter
Julian Cazalet

Deutsche Bank AG London                            [phone]
(Joint brokers to Tesco)
Charlie Foreman

Maitland Consultancy                               [phone]
(PR adviser to Tesco)
Angus Maitland
Philip Gawith


   Short Name: Tesco PLC
   Category Code: STR
   Sequence Number: 00006283
   Time of Receipt (offset from UTC): 20030624T062505+0100