Stabilisation Notice

Tesco PLC
14 January 2004



Tesco PLC  Stabilisation Notice


Dear Sirs


Placing (the 'Placing') of 315 million new ordinary shares of 5 pence each
('Shares') of Tesco Plc ('Tesco' or the 'Company') (with an over-allotment
option of up to 45 million additional new ordinary shares) Cazenove & Co. Ltd
('Cazenove') notifies you that it is the stabilising manager and may conduct
stabilising activities in relation to the Shares, ISIN: GB0008847096 and in
connection with the above transaction. Cazenove confirms the following:



1. The securities to be stabilised are the Shares referred to above; no other
associated securities are subject to stabilisation;



2. The stabilising manager is Cazenove (contact: Greg Bennett - Telephone: 020
7588 2828);



3. The stabilisation period is expected to commence immediately and ends on 15
February 2004 inclusive (30 days after the Closing Date);



4. The issue price of the Shares was set and announced on 13 January 2004.



Stabilisation/FSA


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