Disposal

Smiths Group PLC
3 July 2001

London, 3 July 2001

For immediate release

Not for release, publication or distribution in, or into, Canada, Japan or
Australia



Smiths completes demerger of Automotive Systems Division

The Board of Smiths Group plc is pleased to announce that it has completed the
demerger of the Automotive Systems Division for £940 million, as approved by
shareholders on 21 May 2001.

Completion follows an order granted by the High Court to sanction the Scheme
of Arrangement, pursuant to section 425 of the Companies Act 1985, enabling
the demerger to proceed. The Scheme becomes effective today.

The cash proceeds of the demerger, amounting to £625 million, before costs,
will be used by Smiths to reduce its borrowings. The balance of the demerger
price is represented by preference shares held by Smiths. The company will
also retain 19.99 per cent of the ordinary equity in Automotive, offering the
potential for Smiths to realise future value from the business.

Smiths is a global business with market-leading positions in each of its four
operating businesses: advanced aerospace systems; mechanical and polymer
seals; medical devices and critical care equipment; and specialised industrial
products for interconnect & air movement applications. Further information on
Smiths can be found on the company's website: www.smiths-group.com.



For further information please contact:

Russell Plumley 020 8457 8203