Re Agreement

Tesco PLC
17 April 2003

17 April 2003



                                   TESCO PLC


                          Kipa and Tesco Advance Talks




Under Turkish Capital Markets Board Rules, it is a requirement that an
announcement be made at each stage of any possible venture.


Following its announcement on 1 August 2002 and an update at our Group Annual
Results on 8 April 2003 Tesco Plc has signed a conditional contract to buy
certain classes of equity share capital in Kipa, a Turkish hypermarket chain.


The agreement is subject to a number of material conditions. If these conditions
are satisfied closing of the deal is expected to be later in the current
financial year.


The maximum cash consideration payable for the entire equity capital of Kipa
would be up to USD 118m (£75m at current exchange rates), subject to a net cash
adjustment.



                                     -End-



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