Trading Statement

Smith WH PLC
30 January 2002


                                                               30 January 2002
                              WH SMITH PLC
                           TRADING STATEMENT

KEY POINTS
__________

* Strong UK Retail sales performance, but lower gross margin due to sales mix
* US Travel Retail performance weak
* Very good trading in Australia and New Zealand
* Publishing performance slightly ahead of expectations
* Good sales growth for News Distribution

UK RETAIL
_________

Like for like (LFL) retail sales for the 20 weeks to 19 January 2002 were up
by 7%. LFL sales during the 6 week Christmas period ending 5 January 2002
were up by 8%. In addition to the LFL growth, a further 2% growth has been
generated from new space. The sales performance by business for the
respective periods is as follows:


                                              6 Week LFL          20 Week LFL
                                              __________          ___________
UK High Street                                        8%                   7%
UK Travel                                             8%                   7%
                                                   _____                _____
Total                                                 8%                   7%
                                                   =====                =====

Sales in key product categories for the 20 week period were: books up 6%,
stationery flat, entertainment up 13%, news & magazines up 7% and express up
10%.

The strong sales performance from lower margin products such as DVD and
multimedia within the entertainment category had a negative impact on the
sales mix, resulting in a reduction in gross margin of 1 percentage point. We
expect the mix to move back towards the high margin categories towards the
end of the year.

INTERNATIONAL RETAIL
____________________

The LFL sales performance by business for the respective periods is as
follows:

                                             6 Week LFL           20 Week LFL
                                             __________           ___________
US Travel Retail                                   -16%                  -20%
WHSmith ASPAC                                       10%                    8%
                                                 ______                 _____
Total                                               -2%                   -8%
                                                 ======                 =====

The US Travel Retail business has seen a substantial fall in LFL sales as a
result of the year on year decline in airline passenger numbers and hotel
occupancy rates. These declines primarily reflect the impact of September
11th but also the deterioration in general economic conditions in the US over
the past twelve months.

In the Airport business, we have made good progress in agreeing relief from
minimum guaranteed rents with airport authorities to reduce the fixed cost
base and, encouragingly, there has been an improvement in the sales
performance in the last few weeks. In Hotels, however, the fixed cost base is
more difficult to reduce and we have not seen a marked improvement in sales.
Accordingly, we will be closing a number of loss making Hotel stores with
immediate effect. We have also made a significant reduction in the central
administrative costs at our head office in Atlanta.

Due to the continued material decline in sales, particularly in Hotels, we
now take a more pessimistic view on the full year out-turn for this business.
In the first 4 months of the year, the business overall incurred a trading
loss of £10m, although there should be a much improved performance in the
remainder of the year as the level of sales decline moderates and the full
benefit of cost savings begin to come through.

Australia and New Zealand LFL retail sales have been very strong, with sales
in Australia over the Christmas period up 14%.

PUBLISHING
__________

Sales for Hodder Headline for the 20 weeks to 19 January 2002 were down 5%
against an exceptionally strong comparative period. This is slightly better
than expected and reflects the phasing of sales towards the second half this
year which will be supported by a very strong new release schedule. The
publication programme includes new novels from Jean Auel, Mike Gayle, Stephen
King, James Patterson, Martina Cole and Wendy Holden, together with
autobiographies from Mo Mowlem, Brian Clough, Sue McGregor and Spice Girl Mel
B.

NEWS DISTRIBUTION
_________________

In the 20 weeks to 19 January 2002, sales for WHSmith News were up by 7%.
Newspaper sales were up by 10% reflecting price and volume increases and
magazine sales were up by 3%. The new management team is providing much
needed stability following the disruption of the last 18 months.

GROUP CHIEF EXECUTIVE'S COMMENTS
________________________________

Commenting on the performance, Richard Handover, Group Chief Executive said:

'Trading for the Group as a whole is in line with our expectations with the
exception of the US Travel business, which has been severely affected by
disruption to air travel and hotel occupancy in the US. UK Retail sales over
the Christmas period and for the year to date have been particularly strong,
although driven primarily by lower margin categories.

'Whilst the performance of the US business has been disappointing, there
should be a considerable improvement in the remainder of the year. We will
however continue to closely monitor the sales performance in the US, to
determine what further action may be necessary.'

WH Smith PLC will hold its AGM today (11.30am at The Brewery, Chiswell
Street). It is intended to announce the interim results for the 6 months to
28 February on 18 April 2002.

- Ends-


Enquiries:

WH Smith PLC                                                 020 7514 9600
Richard Handover            Group Chief Executive
John Warren Group           Finance Director
Richard Manhire             Investor Relations               020 7514 9686
Louise Evans                Media Relations                  020 7514 9624


Brunswick                                                    020 7404 5959
Louise Charlton
Katya Reynier




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