Store Portfolio

Sainsbury(J) PLC
25 July 2000


Sainsbury's Releases Further Value From Store Portfolio

J Sainsbury plc has undertaken a sale and leaseback transaction on a further
ten of its food retail supermarkets to a company formed by Morgan Stanley Dean
Witter and Asset Trust Ltd. The transaction follows the same format as the
scheme the company announced in February 2000 for the sale and leaseback of 16
of its stores.

This transaction secures the occupation of these key stores for Sainsbury's on
a long-term and low fixed cost basis. It also offers a number of innovative
solutions to allow Sainsbury's occupational flexibility including the right to
substantially develop the premises during the life of the arrangement with no
additional rental.

This purchase will be financed by the issue of £226 million of asset backed
debt underwritten by Morgan Stanley Dean Witter.

Ian Coull, Group Property Director comments:

'We are always seeking to maximise the value from our estate in the most
effective way. This will deliver value for investment into our stores'
improvement programme to better meet our customers' needs. We are selling
these specific stores at 100% of their investment value, gaining greater
occupational flexibility, achieving low cost occupation through 1% annual
fixed rental uplifts while also securing long-term occupation of these core
properties'.

For enquiries:

Investor Relations: Amanda Cobb  - 0207 695 6215
Press Office:  Pip Wood  - 0207 695 7295