Re Joint Venture

Tesco PLC
15 December 2000




                      TESCO PROGRESSES PLANS IN MALAYSIA




The Board of Tesco PLC announces that it has entered into an agreement with
Sime Darby Berhad to form a joint venture company to develop hypermarkets in
Malaysia.


The agreement and development plans are conditional upon approvals being
obtained from the relevant Malaysian Government Authorities.


Subject to regulatory approvals, it is proposed that Tesco will own 70% and
Sime Darby 30% of the joint venture company, Tesco Stores (Malaysia) Sdn Bhd
(TSM).


It is currently planned for TSM to invest approximately RM1.2bn (£215m) to
open around 15 hypermarkets. The timing of the investment and store openings
will depend on market conditions and the performance of the business.


This agreement represents the next step in the Tesco strategy of opening large
stores in developing retail markets. Tesco already operates 32 hypermarkets in
Thailand, South Korea and Taiwan as well as over 100 stores in Central Europe
and more than 700 stores in the UK and Republic of Ireland.


As has been seen in other countries in which Tesco has expanded, these plans
will increase opportunities for Malaysian food and other products.


Tesco looks forward to working closely with Sime Darby, who are one of the
most respected companies in Malaysia. They are a blue chip multi-national
conglomerate with interests in many industries including property development,
plantations, general trading and services.


(£1 = RM5.6)

                                   - ends -


Enquiries:-


Harjeet Drubra - Tesco Investor Relations
Tel:- 01992 646 663
Mob:- 07720 288960


David Sawday - Tesco Press Office
Tel:- 01992 644 739
Mob:- 07801 236499


Angus Maitland - Maitland Consultancy
Tel:- 0207 379 5151