Competition Commission Provisional Issues Letter

Tesco PLC
1 February 2000

                                                                             
                                   TESCO PLC
                                       
               COMPETITION COMMISSION PROVISIONAL ISSUES LETTER


Tesco  welcomes  today's public recognition by the Competition Commission,  in
their issues statement on the groceries inquiry:

First, that on profits there is no real evidence of excessive profitability.

Second on prices, that these have fallen in real terms in the UK and that  the
trend here is better than in a number of comparable European countries.

Third, that consumers have high levels of satisfaction with the performance of
supermarkets and that they judge us on our range, quality, service and price.

Fourth,  that the emergence of Internet and home shopping should have  further
beneficial effects on the competitive situation.

Tesco  CEO  Terry Leahy said, 'This represents a recognition by the Commission
of  the  reality  we experience everyday - intense competition  that  benefits
shoppers.'


For further information contact:

David Sawday   01992 644739
Alan McLaughlin     01992 646763