Disposal Update

Smith & Nephew Plc
24 February 2006

Smith & Nephew completes disposal of 50% interest in BSN medical

24 February 2006

Smith & Nephew plc (LSE: SN, NYSE: SNN) announced today it has completed the
sale of its 50% interest in BSN medical to Montagu Private Equity.

Smith & Nephew has converted its share of the proceeds into US dollars and has
received $560 million in cash, after adjusting for net debt of BSN and certain
other items.  Net assets subject to disposal are $220 million and the gain on
disposal will be $315 million, after transaction costs of $25 million.  Cash tax
of $10 million will be payable on the transaction.

Enquiries

Investors
Peter Hooley                                          Tel: [phone]
Smith & Nephew
Finance Director

Media
David Yates                                           Tel: [phone]
Financial Dynamics

About us

Smith & Nephew is a global medical technology business, specialising in
Orthopaedics, Endoscopy and Advanced Wound Management products.  Smith & Nephew
is a global leader in arthroscopy and advanced wound management and is one of
the fastest growing global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives.  The company
prides itself on the strength of its relationships with its surgeons and
professional healthcare customers, with whom its name is synonymous with high
standards of performance, innovation and trust.  The company has over 8,500
employees and operates in 33 countries around the world generating annual sales
of $2.6 billion.

Forward-Looking Statements

This press release contains certain 'forward-looking statements' within the
meaning of the US Private Securities Litigation Reform Act of 1995.  In
particular, statements regarding expected revenue growth and operating margins
discussed under 'Outlook' are forward-looking statements as are discussions of
our product pipeline.  These statements, as well as the phrases 'aim', 'plan',
'intend', 'anticipate', 'well-placed', 'believe', 'estimate', 'expect',
'target', 'consider' and similar expressions, are generally intended to identify
forward-looking statements.  Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors (including, but not
limited to, the outcome of litigation, claims and regulatory approvals) that
could cause the actual results, performance or achievements of Smith & Nephew,
or industry results, to differ materially from any future results, performance
or achievements expressed or implied by such forward-looking statements.  Please
refer to the documents that Smith & Nephew has filed with the U.S. Securities
and Exchange Commission under the U.S. Securities Exchange Act of 1934, as
amended, including Smith & Nephew's most recent annual report on Form 20F, for a
discussion of certain of these factors.

All forward-looking statements in this press release are based on information
available to Smith & Nephew as of the date hereof.  All written or oral
forward-looking statements attributable to Smith & Nephew or any person acting
on behalf of Smith & Nephew are expressly qualified in their entirety by the
foregoing.  Smith & Nephew does not undertake any obligation to update or revise
any forward-looking statement contained herein to reflect any change in Smith &
Nephew's expectation with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.




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