Offer Update and Extension

Tesco PLC
09 August 2007


Not for release, publication or distribution in or into Canada, Australia or Japan or any jurisdiction where to do so 
would constitute a violation of the relevant laws of such jurisdiction

                                                                                                           9 August 2007

                                        Tesco Holdings Limited

                            Recommended cash Offer for Dobbies Garden Centres plc

                                        Offer update and extension

Summary

• As at 1.00 p.m. (London time) on 8 August 2007, Tesco Holdings may count 3,279,552 Dobbies Shares (representing 
approximately 32.6 per cent. of the existing issued share capital of Dobbies) towards satisfaction of the acceptance 
condition to its Offer.

• The Board of Tesco announces that the Offer, which remains subject to the terms and conditions set out in the Offer 
Document, is being extended and will remain open for acceptance until 1.00 p.m. (London time) on 19 August 2007.

• Dobbies Shareholders who have not yet accepted the Offer are strongly urged to do so as soon as possible.  Except 
with the consent of the Panel, if the Offer has not become or been declared unconditional as to acceptances on or 
before 1.00 p.m. (London time) on 19 August 2007, it will not be extended thereafter and will lapse.

• Tesco believes that the Offer represents excellent value for Dobbies Shareholders. The Offer of 1,500 pence per 
Dobbies Share values Dobbies' entire issued and to be issued share capital at approximately £155.6 million and 
represents:
   - a premium of approximately 28.0 per cent. to 1,171.6 pence, being the average closing price per Dobbies Share 
     over the one month period ended 29 May 2007, the Business Day prior to Dobbies' announcement that it had been 
     approached;

   - an enterprise value which is a multiple of approximately 17.5 times Dobbies' EBITDA for the twelve months 
     ended 30 April 2007; and

   - one of the highest multiples of EBITDA paid in recent UK garden centre transactions, including the 
     acquisitions of Wyevale Garden Centres plc and Blooms of Bressingham Holdings plc.


Background to and reasons for the Offer

• Tesco believes that Dobbies has the best garden centre business model in the UK, with an excellent management team 
and a strong brand.  Tesco believes that Dobbies will become a nationwide business serving more customers and offering 
greater choice and keener pricing.

• The acquisition of Dobbies will provide Tesco with a new source of growth with the longer term potential for Dobbies 
to grow strongly and increase access to environmentally friendly products at keener prices, allowing more customers to 
make a greener choice.

• Tesco also believes that Dobbies will be better placed to respond to customers who are seeking to make a positive 
difference to the environment, developing and offering greener products such as wind turbines, ground source heat 
pumps, home insulation and composters and services such as personal carbon footprint calculators.

• Dobbies will retain its head office in Midlothian and its unique brand, heritage and culture under the Tesco Group 
umbrella.

• As well as the opportunity for Dobbies staff to contribute to the creation of the best niche garden centre business 
in the UK, Tesco believes that there will be greater career opportunities for Dobbies' staff as a result of faster 
growth.


Level of acceptances and ownership

On 8 June 2007, the boards of directors of Tesco and Dobbies announced the terms of a recommended cash Offer to be made 
by Tesco Holdings for Dobbies at a price of 1,500 pence per Dobbies Share. The document setting out the full terms of 
the Offer (the 'Offer Document') was posted to Dobbies Shareholders on 20 June 2007.

The Board of Tesco announces that as at 1.00 p.m. (London time) on 8 August 2007, being the second closing date of the 
Offer, valid acceptances of the Offer had been received in respect of a total of 451,412 Dobbies Shares representing 
approximately 4.5 per cent. of the existing issued share capital of Dobbies.

This total includes valid acceptances of the Offer received in respect of 270,791 Dobbies Shares, representing 
approximately 2.7 per cent. of the existing issued share capital of Dobbies, for which irrevocable undertakings to 
accept the Offer have been received.

In addition to the Dobbies Shares in respect of which Tesco Holdings has received acceptances of the Offer, Tesco 
Holdings owns 2,828,140 Dobbies Shares, representing approximately 28.1 per cent. of the existing issued share capital 
of Dobbies.

In total, therefore, as at 1.00 p.m. (London time) on 8 August 2007, Tesco Holdings may count 3,279,552 Dobbies Shares 
(representing approximately 32.6 per cent. of the existing issued share capital of Dobbies) towards satisfaction of the 
acceptance condition to its Offer.


Extension of the Offer

The Board of Tesco announces that the Offer, which remains subject to the terms and conditions set out in the Offer 
Document, is being extended and will remain open for acceptance until 1.00 p.m. (London time) on 19 August 2007.  
Except with the consent of the Panel, if the Offer has not become or been declared unconditional as to acceptances on 
or before 1.00 p.m. (London time) on 19 August 2007, it will not be extended thereafter and will lapse.  Therefore, 
Dobbies Shareholders who have not yet accepted the Offer are urged to do so as soon as possible and in any event by
1.00 p.m. (London time) on 19 August 2007.

For Dobbies Shares held in certificated form, to accept the Offer, Forms of Acceptance not yet returned should be 
completed, signed and returned in accordance with the instructions set out in the Offer Document and on the Form of 
Acceptance, so as to be received as soon as possible and, in any event, no later than 1.00 p.m. (London time) on 19 
August 2007.

For Dobbies Shares held in uncertificated form (that is, held in CREST) an Electronic Acceptance should be made in 
accordance with the instructions set out in paragraphs 14(e) to 14(g) of the letter from Tesco in Part II of the Offer 
Document as soon as possible and, in any event, so that settlement takes place no later than 1.00 p.m. (London time) on 
19 August 2007.

If you require assistance in respect of accepting the Offer, please telephone Lloyds TSB Registrars, Receiving Agent to 
the Offer on: 0870 609 2158 (from within the UK) or [phone] (from outside the UK). However, you should be aware 
that Lloyds TSB Registrars cannot provide any financial advice in connection with the Offer.

Dobbies Shareholders should be aware that the Offer is conditional, amongst other things, upon Tesco Holdings obtaining 
acceptances over such number of Dobbies Shares which, together with any Dobbies Shares acquired or agreed to be 
acquired by Tesco Holdings and/or any member of the Tesco Group before or during the Offer Period, will result in Tesco 
Holdings holding (whether pursuant to the Offer or otherwise) Dobbies Shares carrying in aggregate more than 50 per 
cent. of the voting rights then normally exercisable at a general meeting of Dobbies.

Save as set out in this announcement neither Tesco, nor Tesco Holdings, nor any person acting in concert with Tesco, 
nor any person acting in concert with Tesco Holdings, has an interest in or right to subscribe for relevant securities 
of Dobbies or has any short position in relation to relevant securities of Dobbies (whether conditional or absolute and 
whether in money or otherwise) including any short position under a derivative, any agreement to sell or any delivery 
obligation or right to require another person to purchase or take delivery of any relevant securities of Dobbies.

Save for the irrevocable undertakings described in the Offer Document, neither Tesco, nor Tesco Holdings, nor any 
person acting in concert with Tesco, nor any person acting in concert with Tesco Holdings, has borrowed or lent any 
relevant securities nor has any arrangement in relation to relevant securities been made. For these purposes, 
'arrangement' includes any indemnity or option arrangement, any agreement or understanding, formal or informal, of 
whatever nature, relating to relevant securities which is, or may be, an inducement to deal or refrain from dealing in 
such securities.

Terms defined in the Offer Document have the same meanings in this announcement.  The terms 'acting in concert' and 
'relevant securities' have the same meanings as in the City Code.

Enquiries

Tesco
Chris Griffith, Investor Relations           Tel: [phone]
Trevor Datson, Media                         Tel: [phone]

Greenhill (financial adviser to Tesco)       Tel: [phone]
Simon Borrows
David Wyles

JPMorgan Cazenove (broker to Tesco)          Tel: [phone]
John Paynter
Luke Bordewich

Maitland (PR adviser to Tesco)               Tel: [phone]
Angus Maitland

This announcement does not constitute an offer or invitation to purchase any
securities. The Offer is being made solely by means of the Offer Document and
the accompanying Form of Acceptance, which contain the full terms and conditions
of the Offer, including details of how it may be accepted.

Greenhill & Co. International LLP, which is authorised and regulated in the
United Kingdom by the Financial Services Authority, is acting exclusively for
Tesco Holdings and Tesco and no-one else in connection with the Offer and will
not be responsible to anyone other than Tesco Holdings and Tesco for providing
the protections afforded to clients of Greenhill & Co. International LLP nor for
providing advice in relation to the Offer.

This announcement has been prepared for the purpose of complying with English
law and the City Code and the information disclosed may not be the same as that
which would have been disclosed if this announcement had been prepared in
accordance with the laws of jurisdictions outside the United Kingdom.

The availability of the Offer to persons who are not resident in the United
Kingdom may be affected by the laws of the relevant jurisdictions. Persons who
are not so resident should inform themselves about and observe any applicable
requirements. Further details in relation to Overseas Shareholders are contained
in the Offer Document.

The Offer (including the Loan Note Alternative) is not being made, directly or
indirectly, in or into and is not capable of acceptance in or from Canada,
Australia or Japan. Accordingly, copies of this announcement are not being, and
must not be, mailed or otherwise forwarded, distributed or sent in or into or
from Canada, Australia or Japan. Custodians, nominees and trustees should
observe these restrictions and should not send or distribute copies of this
announcement in or into Canada, Australia or Japan.

The Loan Notes to be issued in connection with the Offer have not been, nor will
they be, registered under the US Securities Act nor under any laws of any
jurisdiction of the United States, the relevant clearances have not been, and
will not be, obtained from the securities commission of any province of Canada
and no prospectus has been lodged with, or registered by, the Australian
Securities and Investments Commission or the Japanese Ministry of Finance.
Accordingly, the Loan Notes may not (unless an exemption under the relevant
securities laws is applicable) be offered, sold, resold, delivered or
transferred, directly or indirectly, in or into the United States, Canada,
Australia or Japan or any other jurisdiction if to do so would constitute a
violation of the relevant laws of, or require registration thereof in, such
jurisdiction or to, or for the account or benefit of, a person located in the
United States, Canada, Australia or Japan.

The Offer is being made in the United States pursuant to an exemption from the
US tender offer rules provided by Rule 14d-1(c) under the US Exchange Act.

Notice to US holders of Dobbies Shares:

The Offer is being made for the securities of a UK company and is subject to UK
disclosure requirements, which are different from those of the United States.
The financial information included in the Offer Document has been prepared in
accordance with generally accepted accounting principles of the United Kingdom
and thus may not be comparable to financial information of US companies or
companies whose financial statements are prepared in accordance with generally
accepted accounting principles in the United States. The Offer is being made in
the United States pursuant to applicable US tender offer rules and otherwise in
accordance with the requirements of the City Code. Accordingly, the Offer is
subject to disclosure and other procedural requirements, including with respect
to withdrawal rights, offer timetable, settlement procedures and timing of
payments that are different from those applicable under US domestic tender offer
procedures and law.

The receipt of cash pursuant to the Offer by a US holder of Dobbies Shares may
be a taxable transaction for US federal income tax purposes and under applicable
US state and local, as well as foreign and other tax laws. Each holder of
Dobbies Shares is urged to consult his independent professional adviser
immediately regarding the tax consequences of acceptance of the Offer.

It may be difficult for US holders of Dobbies Shares to enforce their rights and
any claim arising out of the US federal securities laws, since Tesco and Dobbies
are located in a non-US country, and some or all of their officers and directors
may be residents of a non-US country. US holders of Dobbies Shares may not be
able to sue a non-US company or its officers or directors in a non-US court for
violations of the US securities laws. Further, it may be difficult to compel a
non-US company and its affiliates to subject themselves to a US court's
judgement.

In accordance with normal UK practice and pursuant to Rule 14e-5(b) of the US
Exchange Act, Tesco or its nominees, or its brokers (acting as agents), may from
time to time make certain purchases of, or arrangements to purchase, Dobbies
Shares outside the United States, other than pursuant to the Offer, during the
period in which the Offer remains open for acceptance. These purchases may occur
either in the open market at prevailing prices or in private transactions at
negotiated prices. Any information about such purchases will be disclosed as
required in the UK, will be reported to a Regulatory Information Service and
will be available on the London Stock Exchange website,
www.londonstockexchange.com.






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