Response to OFT

Tesco PLC
09 May 2006

                                        
    TESCO RESPONSE TO THE OFT'S DECISION TO REFER THE GROCERY SECTOR TO THE
                             COMPETITION COMMISSION


The OFT's decision to refer the grocery sector to the Competition Commission is
not unexpected.

The OFT itself has concluded that overall consumers have benefited from falling
prices, an increase in product range and improved service. This is the most 
important measure of competition and we are confident the Competition
Commission will endorse this view.

Sir Terry Leahy, Tesco Chief Executive, said:

'We know that up and down the country millions of ordinary consumers vote with
their feet when they go shopping. They have a choice and it is one they exercise
every day.

'But we also know that some people have concerns and this inquiry gives us an
opportunity to listen to those and address some of the myths surrounding our
industry. We will also reiterate that the consumer in every walk of life
benefits from the choice, value, quality, convenience, range and service that
supermarkets like Tesco provide.'


                                      ENDS


CONTACTS

Investor Relations:     Steve Webb                    01992 644800

Press:                  Lucy Neville-Rolfe            01992 644645
                        Jonathan Church               01992 644645
                        Angus Maitland - Maitland     020 7379 5151




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