Completion of transaction

News release

Thursday 23rd August 2012

TESCO annouNces property sale and leaseback DEAL IN SOUTH KOREA

Tesco has today announced the successful completion of a sale and leaseback transaction in South Korea. Homeplus Co. Ltd, a wholly owned subsidiary of Tesco Plc, has concluded the transaction with a consortium of investors led by IGIS Asset Management, a local leader in retail property investment.

The deal comprises a portfolio of four Homeplus stores and accompanying mall space, with total gross proceeds in excess of £300m.

This announcement highlights the continued success of Tesco's strategy to release value from our international property portfolio.

Notes to Editors:

§ Tesco entered South Korea in 1999 in a joint venture with Samsung; Homeplus Co. Ltd is now a wholly owned subsidiary of Tesco Plc

§ Homeplus in South Korea is Tesco's most successful international business with revenue of over £5bn in 2011/12

§ Homeplus has more than 450 stores in South Korea and employs over 27,000 people

§ Homeplus serves six million customers per week

Contact:

Investors: Chris Griffith +44 (0) 1992 644 800

Media: Tom Curry +44 (0) 1992 644 645

Brunswick +44 (0) 207 404 5959