Regulatory Application

Smith & Nephew Plc
25 August 2000

            SUBMISSION MADE FOR PRE MARKET APPROVAL FOR DERMAGRAFT

Smith  & Nephew plc, the global medical devices company, and its joint venture
partner,   Advanced   Tissue  Sciences,  announced  today   that   statistical
significance has been reached for the primary end point in the clinical  trial
of   Dermagraft  for  the  treatment  of  diabetic  foot  ulcers.   The   data
demonstrated that, in difficult-to-heal chronic ulcers with a duration greater
than  six weeks at the time of screening, Dermagraft healed significantly more
ulcers than the control treatment.  A Pre-Market Approval application has been
submitted to the US Food & Drug Administration.


Enquiries:

Margaret Stewart, Group Director Corporate Affairs  Tel: [phone]
Smith & Nephew plc                                  Fax: [phone]

Jonathan Birt                                       Tel: [phone]
Financial Dynamics                                  Fax: [phone]