Trading Statement

Smith WH PLC
02 January 2004

                                                                  2 January 2004

                                  WH SMITH PLC

                        TRADING STATEMENT & BOARD CHANGE


TRADING STATEMENT

As a result of disappointing sales in its UK Retail business, WHSmith has
brought forward its Christmas trading statement. Although the full results for
the Christmas period are not yet available, we now expect that a combination of
disappointing sales and margin pressure will result in a material profit
shortfall against current market expectations.

UK Retail

Like for like (LFL) sales for the 17 weeks to 27 December 2003 were flat with
gross margin down 2 percentage points.

In anticipation of an intensely price competitive Christmas trading period, we
adopted a more promotional stance to protect our market positions and drive
sales. However sales volumes, particularly in the entertainment category, did
not compensate for the fall in gross margin.

The sales performance by business is analysed as follows:


                                                                  17 Week LFL

WHSmith High Street                                                    0%

WHSmith Travel Retail                                                  3%

WHSmith Online                                                         3%

Total                                                                  0%

LFL sales for the key product categories in the 17 week trading period were as
follows: books +2%, stationery -2%, news & express +3% and entertainment -3%.

Margin pressure has been most intense in the books and entertainment categories.
Margins have held up in the stationery category, although sales have been
disappointing. Margins have improved in news & express.

As a result of flat LFL sales and the decline in gross margin, gross
contribution is significantly below the prior year. In addition, our underlying
costs have risen by 4%, excluding marketing costs which increased by £3m.

As a result of the disappointing Christmas trading performance, there will be a
requirement to clear surplus stock, the charge for which will impact operating
profit. In addition, a full operational and financial review of the business is
underway which will necessitate a further stock clearance with a consequent
material write down. This will be taken by way of an exceptional operating
charge in the current year.

ASPAC Retail

The ASPAC Retail business has performed satisfactorily in the period. LFL sales
in the 17 weeks to 27 December 2003 were up 4%.

Publishing

Hodder Headline has had a strong start to the year with comparable sales up 11%
for the 17 weeks to 27 December 2003. Top selling titles included Bravemouth by
Pamela Stephenson, The Know by Martina Cole and Martin Johnson's autobiography.

News Distribution

WHSmith News has continued its recent good performance with LFL sales up 4% in
the 17 weeks to 27 December 2003. Comparable newspaper and magazine sales were
each up by 4%. In addition, sales of higher margin partworks and a further
reduction in the sale of low margin phonecards, helped the business to improve
its profitability.

Outlook

The Board anticipates that the intensely competitive nature of the markets in
which WHSmith UK Retail operates will continue and, as a result, we currently
expect that the Group's pre-tax profits before exceptional items for the full
year will be materially below current market expectations. The publishing and
news distribution businesses continue to trade well and we anticipate further
progress in these businesses.

BOARD CHANGE

With immediate effect Beverley Hodson, Managing Director of UK Retail, will be
leaving the Company. Kate Swann, Group Chief Executive, will assume direct
responsibility for the UK Retail business.

GROUP CHIEF EXECUTIVE'S COMMENTS

Commenting on the performance, Kate Swann, said:

'These are, by any standards, disappointing results reflecting tough conditions
in the UK high street and the fact that we have not dealt with those conditions
as well as we should.

'I am taking direct operational control of the UK Retail business. My immediate
focus is to improve performance by strengthening the senior management team,
undertaking a detailed operational and financial review and ensuring the retail
basics are in place. As part of this process, I have commissioned an overhead
review at our head offices in Swindon and London with a view to improving and
streamlining our key processes and delivering a material reduction in the cost
base.

'I expect to be able to report on the progress of these reviews at the Interim
Results on 22 April 2004.'

Ends



Enquiries:

WH Smith PLC                                                       020 7409 3222

Kate Swann                           Group Chief Executive

John Warren                          Finance Director

Mark Boyle                           Investor Relations            020 7514 9630

Louise Evans                         Media Relations               020 7514 9624



Brunswick                                                          020 7404 5959

Laura Cummings



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