Tesco - Carrefour Asset Swap

Tesco PLC
30 September 2005

30 September 2005

                          Tesco - Carrefour Asset Swap

Tesco and Carrefour are today announcing an asset swap involving stores and
operations in the Czech Republic, Slovakia and Taiwan, subject to the usual
regulatory approvals. As part of the deal, 11 Carrefour stores in the Czech
Republic and 4 stores in Slovakia will be transferred to Tesco for a combined
enterprise value of Euro189.4m. In return, Carrefour will receive 6 Tesco stores
and 2 sites in Taiwan, of an enterprise value of Euro132m. This is part of a
strategic move by Tesco to strengthen its businesses in Central Europe.

Today's announcement will help bring to new customers the unrivalled value,
convenience and choice that have become the hallmarks of Tesco in Central
Europe. Over the past 12 months, Tesco has made a significant investment in
price reductions in the Czech Republic and Slovakia, making a real difference to
ordinary families. Its multi-format approach, including hypermarkets, compact
hypermarkets, department stores and small stores offering both food and
non-food, is helping to increase convenience for customers.

The swap provides Tesco with the opportunity to grow its businesses in the
highly competitive Czech and Slovak markets and exit the Taiwanese market where
it is lacking critical size.

Andrew Higginson, Tesco Group Finance and Strategy Director, commenting on the
deal said:

'This is a positive strategic move for Tesco which will allow us to focus on
doing an even better job for customers in Central Europe and our other Asian
markets.

We have a strong track record of bringing benefits locally. Today's announcement
will help us bring these benefits to new customers, staff and suppliers.

We are clearly sad to see our Taiwan staff move from the Tesco group. They have
done an excellent job securing a small part of a highly competitive market. They
will be an asset for Carrefour in the future'.


Notes for editors:

In its latest annual report and accounts, for the year ended 26th February 2005,
the Tesco Group reported sales of £37,070 million and profits of £2,029m. At
this date, the Group had 2,365 stores and employed 326,000 people in 13
countries. In addition to the core UK business, this included its businesses in
Europe - in Ireland, Hungary, Poland, Czech Republic, Slovakia and Turkey with
294 stores and 55,000 employees and in Asia - in Thailand, South Korea, Taiwan,
Malaysia, Japan and China, with 291 stores and 34,000 employees.

The Czech Republic has a population of 10.2 million. Slovakia has a population
of 5.4 million. Tesco entered both countries in 1996 through the acquisition of
6 department stores in the Czech Republic and 5 in Slovakia. Since then, Tesco
has concentrated on opening new stores in 3 formats - hypermarkets, compact
hypermarkets and small stores. Tesco operates a total of 25 stores the Czech
Republic and 30 stores in Slovakia.

Tesco has one core purpose 'Creating value for customers to earn their lifetime
loyalty' and two values 'No-one tries harder for customers'; 'Treat people how
we like to be treated' that direct how it operates.

100% of Tesco stores in the Czech Republic and Slovakia are managed by Czech or
Slovak nationals. Product range, national advertising and seasonal promotions
are all focused on the unique needs of local customers.

Through significant investment in training and development, Tesco brings
opportunities to thousands of staff throughout the Czech Republic and Slovakia.
All staff receive support to develop their skills and careers regardless of
position, experience, age or location. To help understand its staff, Tesco
carries out the largest annual employee morale survey in the region. In the
Czech Republic Tesco received the Credit Suisse Employer of the Year Award 2005
in recognition of its comprehensive programme of training and development.

At today's exchange rate of Euro1.46: £1, the enterprise value of the Carrefour
business in the Czech Republic and Slovakia is £129.4m. The value of the Tesco
business in Taiwan is £90m.


Contact:

Press       Jonathan Church
            01992 646 606

Investors   Steve Webb
            01992 644 800





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