AGM Statement

Smith (DS) PLC
03 September 2002



                                                To be embargoed until 12.00 noon
                                                                3 September 2002


                              Chairman's Statement
                         to the Annual General Meeting
                                3 September 2002


DS Smith Plc (LSE:SMDS), the international packaging and office products
supplier, today issued the following update on trading at its Annual General
Meeting.

The Group has made a good start to the financial year despite the ongoing tough
conditions in most of our markets.  Packaging continues to make progress and we
are on course with the priority task of rebuilding profitability in Office
Products.

At St Regis Paper, sales volumes are in line with last year's levels.  The sharp
rise in recovered paper prices resulted in a squeeze on margins but we have now
implemented corrugated case material (CCM) price increases and restored margins.

Demand for corrugated board in our major markets was down in the first half of
the calendar year.  Against the background of poor UK demand, DS Smith Packaging
has benefited from ongoing operational improvements and the contribution from
the former Danisco plants, acquired last September.  Kaysersberg Packaging's
continental European corrugated operations have performed well in weak markets.
The Polish business continues to make good progress and the Turkish operation is
benefiting from action to restore profitability.  Corrugated margins are being
affected by the rise in CCM prices but we are implementing box price increases.

The final outcome of this round of price movements in Corrugated and Paper will
not be clear for some time but we expect the overall effect on DS Smith to be
beneficial.

Plastics Packaging had a satisfactory start to the year.  The liquid packaging
and dispensing businesses maintained their progress, particularly in the USA.
In July, we completed the acquisition of Zewathener GmbH, one of Europe's
leading manufacturers of bag-in-box packaging.  Zewathener complements our
existing business, which operates internationally under the Rapak brand.  Demand
for industrial returnable transit packaging, on the other hand, has been subdued
in most markets due to the economic slowdown.

In Office Products, Spicers' wholesaling business is still being affected by
weak demand but, following the decisive actions that we took after last year's
difficulties, its profit recovery is on course.  Turnover in Spicers UK
continues to be lower year on year as a result of the sharp slowdown in demand
that started in the autumn of 2001, nevertheless, the effect of this has been
largely offset by lower costs.  Spicers France continues to grow strongly,
largely as a result of the acquisition of Plein Ciel in 2001.  Spicers Germany
has resolved its service issues and improved performance but growth remains slow
in a subdued market.

In Office Products Manufacturing, John Dickinson is achieving higher profits.
Although its markets continue to be difficult, it is benefiting from its recent
restructuring and withdrawal from low margin products.

Today we say farewell to Peter Williams, who is retiring from the Board.  For
over a decade he has guided the Group, in good times and bad, and transformed
the business he took over in 1991 into a leading European packaging manufacturer
and office products wholesaler.  We shall greatly miss his encyclopaedic
knowledge of our business and thank him for the solid platform that he built.

Outlook

Although we have yet to see any sign of improvement in demand, we remain well
positioned to take advantage of any recovery in our markets.  Despite short term
margin pressure in Corrugated and Paper, the overall effect of the current price
movements should be beneficial.  This, together with the improvements in Office
Products, leads us to expect to make encouraging progress this year.



Antony Hichens
Chairman



Enquiries:

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

Financial Dynamics                                                 020 7269 7291
Richard Mountain/Robert Gurner


Notes to Editors


DS Smith Plc (LSE:SMDS) is an international Group focused on two major
activities - Packaging and Office Products.


These activities are reported in four segments:


Packaging                  -       Corrugated and Paper                        (49% of turnover)
                           -       Plastics                                    (13% of turnover)

Office Products            -       Wholesaling                                 (35% of turnover)
                           -       Manufacturing                               (3% of turnover)



The company is:

-           the leading UK producer of recycled paper board

-           the largest UK collector and merchant of recovered paper

-           a leading manufacturer of corrugated packaging in the UK and France

-           a leading worldwide supplier of bag-in-box packaging

-           the leading European wholesaler of office supplies

-           the largest UK manufacturer of envelopes, books and pads


62% of turnover derives from UK operations.  The Group employs around 10,900
people across operations in UK, Ireland, Germany, Italy, Belgium, Holland,
Poland, Spain, Turkey, Czech Republic, USA, Australia, New Zealand and the
Ukraine.

Group turnover for the financial year ended 30 April 2002 was £1,440.2 million,
with operating profits of £72.0 million before exceptional items and
amortisation of intangibles.

The company changed its name to DS Smith Plc from David S. Smith (Holdings) PLC
in September 2001.


For further information: www.dssmith.uk.com




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