Re Joint Venture

Tesco PLC
28 November 2001


    TESCO AND SIME DARBY SIGN A JOINT VENTURE AND BEGIN STORE DEVELOPMENT
                            PROGRAMME IN MALAYSIA

Tesco PLC and Sime Darby Sdn Bhd have today finalised a joint venture (JV)
following full regulatory approval. Tesco also announced the development of
its first store in Malaysia at Puchong in Kuala Lumpur.

This is the first step of a plan to develop at least 15 hypermarkets
representing an investment of RM1.2bn (£215m).over the next 4-5 years.

Tesco PLC Chief Executive Terry Leahy said:

'Today's announcement is further evidence of the progress we are making with
our international strategy. Malaysia is an exciting opportunity. We believe we
can bring a new shopping experience to a new nation of customers.

We have a strong local partner in Sime Darby and look forward to working with
them to make the business a success'.

Sime Darby Director Encil Jafar Carrim said:

'We are delighted to be working with Tesco to develop hypermarkets in
Malaysia. Tesco brings world class retailing experience to this partnership.
When combined with our understanding of the local market this will give our
joint venture business a real competitive edge'

Tesco's arrival will create 1,500 new jobs with the opening of its first
hypermarket in Malaysia by mid-2002

At today's signing ceremony in Kuala Lumpar Tesco Malaysia CEO Simon Turner
said:

'Tesco's international approach combines world class retailing operations with
local talent. This creates unique opportunities for Malaysian managers, staff
and suppliers. It also means an offer tailored for Malaysian customers built
upon the foundations of quality, choice, convenience and value that Tesco is
renowned for.

For Malaysian companies and suppliers Tesco's arrival creates a great
opportunity to work in partnership with one of the worlds leading retailers'

Tesco has started construction on its first store in Malaysia at Puchong in
Kuala Lumpar which is planned to open by mid-2002. On completion the 10,000
sqm Tesco branded store will carry a total of 50,000 lines in food and
non-foods.

Other locations across Malaysia are being evaluated for future expansion. We
expect to open three more hypermarkets within West Malaysia towards the end of
next year as part of a plan for at least 15 hypermarkets over the next 4-5
years.

Note to editors:-

Tesco Plc is the UK's leading retailer with over 900 stores in 10 countries
including 48 hypermarkets in Thailand, South Korea and Taiwan. Tesco employs
over 260,000 staff worldwide and achieved worldwide sales of £22.8bn in 2001.
By the end of 2002 45% of total Tesco selling space will be outside of the UK

Tesco's share in Tesco Malaysia JV is 70 % with a provision to reduce to 51%
by the end of 2007. The remaining stake is held by Sime Darby

£1.00 = RM 5.6



For further information please contact :-     '
Lucy Cross - Tesco Investor Relations                Tel:- 01992 646 663
Angus Maitland - Maitland Consultancy                Tel:- 020 7379 5151
Tesco Press Office   
                                Tel:- 01992 646 606