Tesco has announced that Mervyn Davies, a non-executive director of the Company, will step down from the Board.  Mr Davies has resigned due to potential conflicts of interest as Tesco increases its financial services in similar regions to Standard Chartered following Tesco's imminent acquisition of the whole of Tesco Personal Finance.  Mr Davies' resignation will take effect on 31 October 2008.

Accepting the resignation, Tesco Chairman, David Reid said: "It is with great regret that I accept Mervyn's resignation from the Board.  He has made an excellent contribution as Non-executive Director at Tesco and I should like to take this opportunity to thank him for his work over the past five years."

Mr Davies has served on the Tesco Board since July 2003.