Re Agreement

Sainsbury(J) PLC
18 July 2001

Sainsbury's and Boots to trial Health & Beauty Link-up 

Sainsbury's and Boots have agreed to trial Boots health and beauty offer in
six Sainsbury out-of-town superstores, with the first opening by early 2002.
If successful, the trial could lead to a trading agreement covering a
substantial number of Sainsbury's larger out of town stores.  The agreement
will be limited to sites where Sainsbury's want to provide its customers with
a wider offering of quality health and beauty products and where Boots wishes
to increase its presence. 

The Boots range of 10,000 health and beauty products will replace Sainsbury's
existing range of 4,500 products and occupy clearly branded space within
Sainsbury's stores.  Unit size will range  from 2,800 to 4,200 square feet.

The offer will include a pharmacy and a wide range of health and beauty
products including Boots' own market leading brands such as No7, Soltan and
Botanics.  Boots staff and consultants will support these ranges in-store.  
Customers will pay for their purchases at the Sainsbury checkouts where they
will benefit from both retailers' loyalty schemes - the Advantage and Reward
cards - on relevant products.

Sir Peter Davis, group chief executive of J Sainsbury plc, said:  ' I said at
our results in May that we would be enhancing our non-food offer. Today's
announcement of this trial demonstrates our intention to develop new and
different ways of offering customers authoritative products throughout our
stores. This link brings together two well-established and highly respected
quality brands to provide an unrivalled food, health and beauty offering in
the UK. '

 
Steve Russell, chief executive of The Boots Company, said:  'We continue to
develop and extend our customer offer in the High Street.   We also recognise
that a significant proportion of health and beauty purchasing is now done out
of town.   This arrangement with Sainsbury's enables us to reach out of town
shoppers, in line with our strategy, quickly and cost effectively.  It will
supplement our own store development programme.   We believe the trial will
demonstrate the benefit to both partners'.

For enquires
Matt Samuel 020 7695 6050 
Jan Shawe   020 7695 6469