Tesco Price Cuts

Tesco PLC
29 August 2003


                       TESCO SLASHES PRICES BY £60 MILLION

Tesco will slash prices by £60 million on hundreds of products across its 780 UK
stores from Monday (September 1) - with some prices falling by as much as 46 per
cent.

This latest round of long-term cuts - an average of 12 per cent on over 350
products - will be welcomed by shoppers across the country who want to save
money on their shopping. Reductions cover every area of the store including
ready meals, fruit and vegetables, meat, snacks, wine, health and beauty,
homewares, and toys.

Announcing the price cuts, Tesco director Tim Mason said: 'Everyone wants to
save money on their weekly shop. Customers vote with their feet and we're
committed to continuing to win customers by cutting prices and helping them
spend less every day.

'These price cuts focus on the essential items people buy every week. Customers
want to know they're getting the best deal when they shop so we check the prices
of 10,000 items every week to make sure we offer unbeatable value.

'We've invested £1.2 billion in reducing prices and this creates a virtuous
circle for us. By reducing price we increase volumes which helps us buy for less
- and when we buy for less we pass these savings on to customers.'

                                      Ends

For further information contact:

Investor relations:        Steven N Butler
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Press:                     Greg Sage
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