Tesco - Innovation and Jobs

Tesco PLC
17 July 2003


17 July 2003

                          Tesco - Innovation and Jobs

Tesco is today announcing the creation of around 3500 new jobs in several
different areas.

   •Tesco Express

    1,400 new jobs will be created as part of the plan to convert One Stop
    stores to Tesco Express.

    The first converted stores are opening this week in Milton Keynes, Oldham,
    Reading and Wickford and will bring many benefits to local shoppers
    including a greater range and lower prices.

   •New Jobs in Existing Stores

    Strong trading performance has led to the creation of an additional 2000
    jobs in store. With stores busier than ever, extra positions have been
    created across the country to make sure that our customers get the best
    possible service.

   •Tesco Telecoms

    A further 50 jobs will be created in Tesco Telecoms over the next 12 months.
    Tesco Talk, our fixed line offer, is due to launch in September. Tesco
    Mobile aims to launch later this year with branded pre-paid phones on sale
    in stores and through Tesco.com in time for Christmas. This innovative new
    service will see great value and convenience for customers with supermarket
    style offers for mobile customers.

   •Business Support Centre

    To support these growing areas and the rest of the business Tesco is also
    announcing the development of a new high tech centre focused on IT and
    developing common business support processes. The centre will be located in
    Bangalore, India where Tesco already has a non-food sourcing team and will
    be operational by the middle of next year.

    Although 350 roles will transfer to the new service centre from Tesco UK
    operations over the next 12 months, decisions like this make UK jobs more
    secure because the Tesco business will be stronger and more able to grow.

    The best possible support will be put in place to help any member of staff
    who is affected and consultations with the unions have already begun. Those
    who want to stay and are willing to change their role and location will be
    able to do so.

David Potts, Retail Director said:

'The new jobs we are announcing come in addition to the 10,000 new UK jobs we
announced during our annual results. We now employ more than 220,000 UK
employees.

'Lifestyles are changing and Tesco is changing with them. We are innovating by
strengthening our convenience offer, entering the telecoms market and opening a
high tech service centre. These are all part of our evolutionary drive to create
value in a highly competitive world'.

                                     -End-

Contacts:

Press:                  Lucy Neville-Rolfe        Tel: [phone]

Investor Relations:     Lucy Cross                Tel: [phone]



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