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The secrets to Tesco.com's success are higher margins on groceries, a
delivery fee, and lower packing and delivery costs than Webvan.



                                      %      TESCO     %                 %
                        TESCO.COM  OF SALE   STORE  OF SALE   WEBVAN  OF SALE



AVERAGE SALE            $123.25     100%     $34.80  100%     $114.00  100%



MINUS:
COST OF GROCERIES       $85.66       70%     $26.10   75%     $ 83.00   73%
CASHIERS IN STORE         -          -       $  .87    3%        -      -
OTHER STORE COSTS       $15.16       12%     $ 4.28   12%        -      -
MARKETING AND ADMIN.     $5.67        5%     $ 1.60    5%     $133.04  117%
PICKING AND DELIVERY    $17.80       14%       -       -      $ 30.00   26%



PLUS:
DELIVERY FEE             $7.25        6%      -        -         -      -
NET PROFIT (LOSS)*       $6.21        5%      $1.95    6%    ($132.04)  NM






* Including delivery fee, before taxes



Data: BusinessWeek, ABN AMRO, Schroder Salomon Smith Barney, Booz, Allen & Hamilton,
Jupiter MMXI, company reports