PRESS INFORMATION ________________________________________________

Competition is tough among the major players in the supermarket sector, and establishing a competitive edge is a constant battle. Encouraging consumer loyalty through incentive schemes has become a prevalent theme in the nineties.

Most of the major supermarkets now have customer bonus cards for instance. Tesco, one of Britain's biggest food retailers, identified the need to generate a service with added value that was not already provided by competitors. The Internet not only provided customers with a convenient way of shopping but also positioned Tesco as innovative in offering a unique service.

Tesco identified BTnet's Direct Plus service as the most reliable, flexible and robust Internet access service that it could rely on to provide a high-quality Internet service. BTnet provides Tesco with a permanent access to the World Wide Web, capable of handling large volumes of Internet traffic at high speeds. It gives Tesco customers constant access to a range of services on the Tesco Web site: www.tesco.co.uk. The Internet as a sales channel has expanded dramatically as consumers and retailers realise its ease of use and scope for commercial trading.

It has enabled Tesco to make shopping more convenient; customers can shop from the comfort of their own home at any time of the day or night. It also provides additional information for customers' convenience such as store opening times, locations and background information regarding the company. llows the Tesco a very low supermarket retailers.

Initially launched in West London, it a customers to purchase any of the 20,000 products available al store in Osterley and is now being extended to other stores at cost. He continued: "Our stores are always open when our customers expect them to be. In the case of our Internet superstore, that means 24 hours a day, seven days a week. BTnet gives Tesco customers the ability to purchase items when they want via their own computer at home. The feedback we have received indicates that customers have adopted this mechanism with ease. Sales figures show that customers are now using the Web site to order Tesco products on a regular basis.

The Internet will be the everyday shopping of the future." Tesco launched its Internet Superstore, Tesco Direct, on 4 November 1996. The service initially offered products such as flowers, champagne and wine which can be delivered to the customer the next day. It has proved so successful that Tesco is now trialling a full product delivery service in a number of areas.

Jon Higgins concludes: "The Tesco Web site has certainly proved of benefit and popular with customers, according to Yell's Top 30 Web sites, Tesco is the 6th most frequently accessed site. In fact, the BTnet system has proved so successful that we are now in the process of installing a second link to allow us to expand our services further."

For further information please contact Ruth Reynolds or Cheryl Gale at Band & Brown Communications on Tel: 0171 7042010 or email: ruth@guest.btinternet.com

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