Acquisition

Smith (DS) PLC
01 June 2004

                                                                     1 June 2004

DS Smith Extends its Recovered Paper Collection Infrastructure by Acquiring BPB
Recycling


DS Smith Plc, the international packaging manufacturer and office products
wholesaler, has agreed to acquire BPB Recycling from BPB PLC, the world's
leading plasterboard manufacturer, subject to clearance from the Office of Fair
Trading.


BPB Recycling is a recovered paper collection business with five collection
depots mainly in the North of England and Scotland.  BPB Recycling had net
assets of £8.8 million at 31 March 2004 and employs approximately 140 people.


This acquisition supports DS Smith's strategy of developing its European
positions in Paper and Corrugated Packaging.  The geographic spread of the BPB
Recycling depots is complementary to the existing UK depot infrastructure of DS
Smith's business, Severnside Recycling, which has 14 collection depots mainly in
the South of England and Wales.  Recovered paper is the principal raw material
in the production of recycled paper.  DS Smith's subsidiary, St Regis Paper
Company, is a major manufacturer of recycled paper; 75% of its output is
corrugated case materials used for manufacturing corrugated board.

Enquiries

DS Smith Plc                                                       020 7932 5000
Tony Thorne, Group Chief Executive
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager

Financial Dynamics                                                 020 7269 7291
Robert Gurner


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