Acquisition

Smith WH PLC
15 June 2001


15 June 2001

WHSMITH ACQUIRES THE BLUE STAR CONSUMER RETAILING GROUP

WH Smith PLC ('WHSmith') has acquired the Blue Star Consumer Retailing Group
('Blue Star') for £38m (NZ$126m) in cash.  The acquisition is part of
WHSmith's strategy to develop its businesses internationally. WHSmith has
traded successfully in the US for fifteen years under the WHSmith brand and
has recently been building a position in Asia and Australia.

Blue Star is the leading bookseller in Australia and New Zealand. It operates
primarily under two brands, Angus & Robertson in Australia and Whitcoulls in
New Zealand.  It operates 184 wholly owned stores and has over 2,000
employees.

In total, in the year to April 2001, Blue Star generated sales of £112m (NZ
$370m) and proforma earnings before interest, tax and depreciation of £5.5m
(NZ$18m).

Blue Star has a strong management team, which will remain in place.  In
addition, WHSmith believes that there are considerable opportunities to add
value by applying its retail expertise.

Richard Handover, Group Chief Executive, said:

'We have identified international retail expansion as a growth opportunity.
Our strategy is to focus on three key areas - travel locations, English
language bookshops and high street locations in English speaking territories.
As a book retailer in both high street and travel locations, Blue Star is an
excellent fit.'

'The acquisition of Blue Star gives us market leading positions in Australasia
in books, one of our core business areas.  It represents an excellent
opportunity for us to establish a strong base in the region and to leverage
our retail expertise on an increased international scale. By working closely
with the existing management team, we believe we can maximise the growth
potential of the business.'

See Notes to Editors attached

Enquiries:

Richard Manhire, Investor Relations              020 7514 9686
Philippa Power, Corporate Affairs                020 7514 9625

Notes to Editors

Blue Star Consumer Retailing Group

The Blue Star Consumer Retailing Group is the leading bookseller in Australia
and New Zealand. It operates 184 wholly owned stores, has over 2,000 employees
and is one of the top ten retailers of books in the world.

Angus & Robertson and Whitcoulls are the largest chains of bookshops in
Australia and New Zealand respectively. Whitcoulls is also the premier
retailer of stationery, news and magazines.

In total, in the year to April 2001, Blue Star generated sales of £112m
(NZ$370m) and proforma earnings before interest, tax and depreciation of £5.5m
(NZ$18m).

More information about Blue Star is available at www.bscr.co.nz

WH Smith PLC

WHSmith is an international retailer with over 1,200 stores worldwide and
employs more than 27,500 people in 11 countries in Europe, North America and
Asia.  It is the number one book and magazine retailer in the UK and its
consumer publishing division, Hodder Headline, is one of the most profitable
publishers in the UK. It also owns the UK's market leader in news and magazine
distribution, WHSmith News Distribution.

WHSmith has been trading in the Asia Pacific region since 1995 and currently
operates 25 stores including sites at Sydney's International Airport.  Hodder
Headline has a major presence as a consumer publisher in both Australia and
New Zealand.

WHSmith is listed on the London Stock Exchange and is part of the FTSE 250
index.  For the six months to 28 February 2001 WHSmith reported a strong
retail performance with profits up 9% to £83 million and a 13% increase in
publishing profits to £9 million.

More information about WHSmith is available at www.whsmithplc.com