TESCO TO EXPAND GLOBAL OPERATIONS BY MODERNIZING SUPPLY CHAIN MANAGEMENT WITH MICRO FOCUS

-Largest UK retailer future proofs strategic supply chain application through modernization-

NEWBURY, England and ROCKVILLE, Md., March 12, 2007 - Micro Focus® (LSE: MCRO.L), a leader in enterprise application modernization solutions, today announces that Tesco plc (LSE: TSCO), one of world's leading retailers, has selected Micro Focus to support the growth of its international operations, notably in the United States, by improving its supply chain operations. Tesco's current supply chain management system monitors and controls its entire in-store inventory. The company has enlisted the assistance of Micro Focus to modernize and extend this system, so it can be rolled out in Tesco's data center in California, when it launches its first U.S. store later this year.

Micro Focus has been selected to extend Tesco's supply chain application, as well as future proofing it against any changes that it may face as its operations continue to expand globally. Not only will the modernized application be ready for the imminent U.S. launch, but it will also be seamlessly deployed in each of Tesco's current data centers across the globe. The move will also yield considerable savings for Tesco, as it will be able to use its existing servers and will be able to avoid investing in additional support for their international operations.

The decision to have Micro Focus extend the supply chain system also fits into the company's strategic imperative to create a common Operating Model across its country operations.

"Elements of our common Operating Model are already in place and benefiting some of our businesses," said Colin Cobain, group IT director at Tesco. "Micro Focus' modernization expertise is not only helping us maintain the momentum behind this strategic IT project, but is also playing a key role in the development of our United States presence. This project will help us meet our goal of opening our first store in 2007."

In February 2006, following extensive consumer research, Tesco announced its plans to open stores in the US that will be modelled on the highly successful and innovative Express concept, which currently operates in five countries, with over 1000 stores serving around eight million customers every week. The research indicated that the US grocery market is worth $600 billion a year and is expected to expand by 40 percent over the next five years, making it even more crucial that its supply chain operations are ready and modernized in time to take advantage of this projected growth.

Micro Focus will enable Tesco to modernize and extend its unique Continuous Replenishment (CR) application to run on the latest IBM® System p™ servers running AIX® UNIX® in addition to its IBM System z™ mainframe running z/OS®. Micro Focus software will be used to create a port for the COBOL-based CR application to AIX. This will allow Tesco to maintain a single source stream for both the mainframe and UNIX versions of the application, ensuring future enhancements to the UK-based high powered mainframe application are rolled out seamlessly to all international countries on the existing IBM System p servers in a cost-effective manner. The extension to System p servers and Open CR solves the problem of providing right-sized processing power to countries like Turkey, where Tesco's data center in Izmir currently supports eight Turkish hypermarkets.

"Micro Focus is delighted to be assisting Tesco in meeting its critical IT objectives as it expands operations into new and emerging markets," said Stephen Kelly, chief executive officer at Micro Focus. "We are proud that Tesco has selected Micro Focus to assist with this key part of its entrance into the U.S. and are very excited about helping them reuse and extend their existing application assets."

About Tesco

Tesco is one of the world's leading international retailers. Since the company first used the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The principal activity of the group is food retailing, with over 2,500 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services.

About Micro Focus

Micro Focus provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com.

The very latest perspectives, expertise and developments from Customers, Partners and Micro Focus are under one roof at Micro Focus World 2007. For more information, visit www.microfocusworld.com .

###

Micro Focus is a registered trademark of Micro Focus. All other products mentioned in this announcement are trademarks of their respective owners.