April 4th 2005

Tesco has appointed Entertainment UK (E.UK) on a two year contract to supply and distribute books to 658 Tesco stores in the UK with immediate effect.

The agreement extends a successful relationship between the 2 companies over the last decade. E.UK currently distributes and supplies all of Tesco's music and games and most of its video product. Additionally, it has been supplying Tesco with books on a short-term contract since June 2004.

E.UK will be supplying a large range of books to Tesco, including chart paperbacks and hardbacks, an extensive children's range, value ranges, lifestyle and wellbeing titles, as well as the eagerly awaited new Harry Potter title which comes out in July.

In order to service the new contract, E.UK has signed a lease on a new warehouse dedicated to book distribution, with sufficient capacity to supply Tesco and allow for future growth in the book market. The company is also doubling the size of its book buying team and boosting its dedicated book supply chain team.

Lloyd Wigglesworth, MD of E.UK, comments "We're very pleased to be extending our relationship with Tesco in this way and looking forward to building on the mutual success which we have enjoyed together over the last decade. We see books as an increasingly important market for us moving forward and a natural extension of our traditional business of supplying and distributing home entertainment products to the UK's leading retailers and e-tailers".

Ian Foster, Commercial Director at E.UK, comments "Each time we have taken on a new category with Tesco we have achieved significant growth in a relatively short period of time and our work together in books over the last 6 months has been no exception. By extending the relationship in this way, I am sure that the supply chain efficiencies, economies of scale and good working relationships which we have developed together will ensure even greater success in the book category".