Refinancing Final

Sainsbury(J) PLC
24 March 2006



24 March 2006

J Sainsbury plc completes £2.07 billion refinancing

Sainsbury's has today completed the refinancing transaction which was announced
on 24 February 2006.  A total of £2.07 billion has been raised through the issue
of two Commercial Mortgage Backed Securities (CMBS) by  Eddystone Finance plc
and Longstone Finance plc (1) (2) (3).  The company has also completed the
purchase of all its outstanding unsecured bonds totalling £1.7 billion.  At the
same time it has made a payment of £110 million into the company's pension
schemes, with the balance of the £350 million one-off contribution expected to
be paid in May 2006.



Darren Shapland, chief financial officer said, 'We are delighted to have
successfully completed the refinancing.  This provides us with cost effective
long-term finance by unlocking value from our property portfolio and at the same
time retains ownership of these valuable assets.  This improves the long term
funding profile of the business and provides a flexible financing platform for
the future as well as underpinning the Making Sainsbury's Great Again plan as we
continue to improve our offer to customers.'





Enquiries:

Investor relations                             Media
[phone]                           [phone]

Lynda Ashton                                   Pip Wood



Notes

(1) Eddystone Finance plc - 12-year floating-rate notes with a
    7-year issuer call

These notes have, via a secured loan structure, the benefit of security granted
over 75 freehold and long leasehold supermarkets with a market value of
approximately £2.0 billion.

Class         Rating (S&P/Moody's)       Principal (£m)             Coupon

A1A           AAA/Aaa                        71.0                  3 mo Libor + 19bps
A1B (1)       AAA/Aaa                        350.0                 3 mo Euribor + 19bps
A2            AAA/Aaa                        421.0                 3 mo Libor + 21bps
B             AA/Aa2                         140.0                 3 mo Libor + 38bps
C             A/A2                           221.0                 3 mo Libor + 58bps

TOTAL                                        1,203.0               3 mo Libor + 29bps

Note (1): The A1B tranche is Euro-denominated with a nominal value of €504.6
million

(2)  Longstone Finance plc - 25-year fixed-rate notes

These notes have, via a secured loan structure, the benefit of security granted
over 52 freehold and long leasehold supermarkets with a market value of
approximately £1.55 billion.

Class        Rating (S&P/Moody's)        Principal (£m)             Coupon

A            AAA/Aaa                         542.5                 4.791%
B            AA/Aa2                          46.5                  4.774%
C            A/A2                            279.0                 4.896%

TOTAL                                        868.0                 4.824%

(3) Eddystone Finance plc and Longstone Finance plc are special
purpose vehicles and are not part of the J Sainsbury plc group.

(4) Morgan Stanley & Co International Limited (Morgan Stanley)
and UBS Limited (UBS) are acting as financial advisers to J Sainsbury plc and no
one else for the purposes of the transaction.  They will not be responsible to
anyone other than J Sainsbury plc (whether or not a recipient of this
announcement) for providing the protections offered to clients of Morgan Stanley
or UBS nor for providing advice in relation to the transaction.  Any existing
bondholder or prospective purchaser interested in buying the new securities is
recommended to seek its own financial advice.

(5) This announcement is being distributed by J Sainsbury plc
only to, and is directed only at, (a) persons who have professional experience
in matters relating to investments who fall within Article 19(1) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and (b)
persons to whom it may otherwise lawfully be communicated (together 'relevant
persons'). Any investment or investment activity to which this announcement
relates is available only to and will be engaged only with, relevant persons.
Any person who is not a relevant person should not act or rely on this
announcement or any of its contents.  The information and any opinions contained
in this announcement do not constitute a public offer under any applicable
legislation or an offer to sell or solicitation or an offer to buy any
securities or financial instruments. The information contained in this
announcement is subject to, and must be read in conjunction with, the
information contained in the full offer documents to be issued in relation to
the matters referred to in this announcement.

(6) This announcement is not for publication or distribution,
directly or indirectly, in or into the United States. This announcement is not
an offer of securities for sale into the United States. The securities referred
to herein may not be offered or sold in the United States unless they are
registered or exempt from registration pursuant to the US Securities Act of
1933. There will be no public offer of these securities in the United States.

(7) Certain statements made in this announcement are forward
looking statements.  Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially from any expected future results in forward looking
statements.


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