Acquisition

Tesco PLC
17 July 2006

Monday 17 July 2006


                  TESCO ACQUIRES LEADER PRICE STORES IN POLAND

Tesco has today announced the acquisition of Leader Price in Poland. Leader 
Price is a convenience retailer with sales of £167 million (972 million PLN) 
in 2005*.

The deal, subject to the usual regulatory approvals, is worth £72 million and
will help Tesco to grow its business in the highly fragmented and competitive
Polish market.

Tesco has a strong track record of bringing benefits locally and today's
announcement is good news for Polish shoppers, suppliers and employees.

New customers will benefit from Tesco Poland's unrivalled value, convenience and
choice. Over the last year alone Tesco has invested over £9 million in cutting
prices in the country, making a real difference to families.

Tesco's multi-format approach, including hypermarkets and smaller stores, is
helping to increase convenience for customers in more communities across the
country.

Kevin Grace, CEO of Tesco Poland, said: 'This deal is good news for customers.
Convenience, low prices, service and quality have become the hallmark of Tesco
in Poland and we look forward to bringing these benefits to more communities.

'After ten years of trading in Poland Tesco has built up a strong local business
employing over 20,000 people and working with over 1,500 Polish suppliers.'


                                     -Ends-


Contact:

Press         Jonathan Church         [phone]
              Greg Sage               [phone]

Investors     Steve Webb              [phone]


Notes to Editors

* Leader Price sales figure includes franchises.

ABOUT TESCO

Tesco entered Poland in 1995 and currently operates 107 stores (including 31
Savia supermarkets), employing over 20,000 people. Sales for the financial year
ending 2006 were £917 million. Tesco has a local approach to its international
businesses. All Tesco stores in Poland are managed by Polish nationals. This
increases Tesco's understanding of the unique needs of local customers and helps
the company to think and act locally.

Tesco is the UK's largest retailer and one of the world's leading international
retailers. The Tesco group had a turnover of £41.8bn with pre-tax profits of
£2.2bn in the year to February 2006. Tesco operates over 2,670 stores employing
over 370,000 people.

Outside the UK, the Tesco group operates in 11 countries across Europe and Asia.
In Europe Tesco operates 363 stores and has over 68,000 employees in the Czech
Republic, Hungary, Republic of Ireland, Poland, Slovakia and Turkey.

In Asia Tesco operates 444 stores and employs over 56,000 people in China,
Japan, Malaysia, South Korea and Thailand.

Wherever Tesco operates it has one Core Purpose - to 'Create value for customers
to earn their lifetime loyalty.'

Through significant investment in training and development, Tesco brings
opportunities to thousands of staff throughout Poland. Tesco supports its staff
in developing their skills and careers regardless of position, experience, age
or location. To help understand the needs of its staff, Tesco carries out the
largest annual employee survey in the country. Tesco was also awarded the Hermes
award for its responsible and outstanding approach to staff in 2005 and 2006.

ABOUT LEADER PRICE

Leader Price opened its first store in Poland in 2000. Leader Price is part of 
the Casino group, which also owns Geant in Poland. Leader Price operates over 
220 stores including some franchises, across Poland, employing nearly 2,200 
people.

ABOUT POLAND

Poland has a population of almost 40 million and is one of the lead economies in
Central and Eastern Europe. The capital Warsaw is the largest city with a
population of 1.6 million. It is the third largest market in Central and Eastern
Europe behind Russia and the Ukraine with GDP of £170,172 million in 2005 with
real growth of 3%. Total retail sales were £64,652 million last year. Poland
joined the EU in May 2004.





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