Tesco Shareholders Deliver Stinging Rebuke to Board Over Pay at Today's AGM

By Ctw Investment Group, PRNE
Thursday, July 1, 2010

WASHINGTON, July 2, 2010 - In a stinging rebuke to the Tesco PLC (LON: TSCO) board of directors,
shareholders today cast 38% of their votes against the Directors'
Remuneration Report at the company's Annual General Meeting in London, based
on preliminary results released by the company. The company did not disclose
the additional number of shares withheld on the Report.

"The extraordinary opposition vote reflects investor outrage over the
excessive pay awarded to Tim Mason, Tesco's second highest paid executive,
despite the dismal performance of the U.S. Fresh and Easy business he
oversees," said Michael Garland, Director of Value Strategies for the CtW
Investment Group, which had urged shareholders to oppose the remuneration

Today's repudiation of Tesco's executive compensation comes at a
difficult moment for the Tesco board. In addition to anger over Mr. Mason's
pay, directors must also confront mounting investor concerns with the
aggressiveness of the company's accounting, the transparency of its U.S.
performance and pay disclosures, and the long-term viability of its U.S.

"The onus is now on the board not only to restore the link between pay
and U.S. performance for Mr. Mason, but also to address the underlying
concerns with Fresh & Easy's future viability," Mr. Garland said. "As an
immediate first step, the board needs to disclose metrics and targets that
will allow shareholders to evaluate the performance of Fresh and Easy and its
executive management going forward."

The CtW Investment Group works with pension funds sponsored by unions
affiliated with Change to Win, a coalition of U.S. unions representing nearly
six million members. These funds have over US$200 billion in assets and are
substantial long-term Tesco shareholders.

Michael Garland of CtW Investment Group, +1-202-302-0251; NOTE TO EDITORS: For additional information or comment please contact Michael Garland at michael.garland at changetowin.org or visit www.ctwinvestmentgroup.com.

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