Smith & Nephew AGM Trading Update.

Business Editors

LONDON--(BUSINESS WIRE)--April 29, 2003

Smith & Nephew plc (NYSE:SNN), the advanced medical devices group, is on track to achieve its financial goals for 2003, Chairman Dudley Eustace told shareholders at the company's Annual General Meeting today.

The planned transaction to combine Smith & Nephew and Centerpulse AG to form a global leader in orthopaedics is proceeding satisfactorily, with documents posted to both companies' shareholders and notice given of an Extraordinary General Meeting of Smith & Nephew shareholders on May 19, 2003.

Smith & Nephew plc confirms its previous trading statement made at the time of the announcement of its intent to combine with Centerpulse AG, namely that the Orthopaedics and Wound Management businesses have had a solid start to the year. The implementation of the dual divisional structure of Orthopaedics into Reconstructive Implants and Trauma is progressing well, as is the introduction of specialised sales forces in the U.S. Endoscopy, however, has experienced some pressure from the increased reuse of disposable blades in the U.S.

Eustace said: "Our business strategy has proved very successful over the last three years. The increase in commercially attractive new products combined with technology acquisitions and increased investment in sales forces are providing us with the means of delivering sustainable growth. We look forward with confidence to the remainder of the year, as well as completing the transaction to combine Centerpulse with our business."

Smith & Nephew is a global advanced medical devices company with a highly successful track record in developing, manufacturing and marketing a wide variety of innovative and technologically advanced tissue repair products. These products are primarily in the areas of bone, joints, skin and other soft tissue. Smith & Nephew has extensive marketing and distribution capabilities, with established sales in more than 90 countries.

Smith & Nephew ADRs, each equivalent to 10 ordinary shares, trade on the New York Stock Exchange under the symbol SNN. Smith & Nephew ordinary shares trade on the London Stock Exchange. Shares are quoted on the SEAQ System, and prices may be accessed on the Reuter Equities 2000 Service under the symbol SMN.L, on Bloomberg under the symbol SNN, and on Quotron under the symbol SMU.EU. For further information, visit Smith & Nephew's Web site at http://www.smith-nephew.com.