Joint Disposal

Smith & Nephew Plc
16 December 2005



Smith & Nephew and Beiersdorf AG plc realise investment in BSN medical - sale to
Montagu Private Equity


16 December 2005


Smith & Nephew plc together with its partner Beiersdorf AG announced today they
have signed an agreement to sell their 50/50 joint venture BSN medical, Hamburg,
to Montagu Private Equity for €1.030 billion.  This agreement is conditional
upon competition clearances being received.  Final completion of the sale is
expected in the first quarter of 2006.


BSN medical is a global medical device company for professional medical products
for general wound care, non-invasive orthopaedics and phlebology. The company's
revenues and operating profits in 2005 are expected to be approximately €525m
and €78m respectively.


Smith & Nephew plc and Beiersdorf AG emphasised the significant achievements by
BSN medical's employees and management who have driven the company's successful
development since its creation in April 2001 and made it one of the leaders in
each of its markets.


Montagu is a leading private equity investor in Europe with funds under
management of €3bn.  Montagu will support the existing management in further
implementing the growth strategy of BSN medical.


Smith & Nephew plc and Beiersdorf AG have been advised by Morgan Stanley & Co.
Limited.


Enquiries


Investors/Media

Liz Hewitt                                             Tel: [phone]

Smith & Nephew Group Director Corporate Affairs


About BSN medical


BSN medical, which was established as a joint venture in April 2001 to combine
the former casting and bandaging, general wound care and phebology businesses of
Beiersdorf AG and Smith & Nephew plc, is a major global player in the
professional medical products market for general wound care, non-invasive
orthopaedics and phlebology.  The company is among the leaders in many of the
segments in which it competes and numerous BSN medical products and brands, such
as Dynacast, Jobst, Deltacast and Leukoplast, are among the most trusted names
in the industry amongst healthcare professionals.


BSN medical operates in 25 countries, employs approximately 3,400 staff and is
expecting sales of approximately €520 million for 2005.


About Smith & Nephew plc


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 £1.25 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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