AGM Statement

Smith (DS) PLC
03 September 2003



                                   DS SMITH PLC



                  Chairman's Statement to the Annual General Meeting

                                3 September 2003



DS Smith Plc (LSE:SMDS), the international packaging and office products
supplier, today issued the following update on trading at its Annual General
Meeting.



In financial year 2002/03, the Group demonstrated its resilience and its ability
to operate in tough markets.  We met our key financial objectives of maintaining
progress in Packaging and rebuilding profitability in Office Products.
Throughout the Group we improved our operations and continued the strategic
development of our businesses.



In the current year, we have yet to see an improvement in the trading
environment and consequently our focus continues to be on raising operational
performance and building on our strong market positions.  In June, when we
announced our preliminary results, we reported that margins in our substantial
Paper business were under pressure and this continues.  However, we remain
confident that the rest of the Group will make further progress this year.



The split of profits between the two halves of the current year is likely to be
different from last year, when a number of factors, including unusually high
sales of Packaging Recovery Notes, boosted the first half result.



DS Smith will issue a trading update in mid October, prior to the close of the
first half of the financial year.  At present, we continue to anticipate
delivering a full year performance in line with expectations.





Antony Hichens

Chairman


Enquiries:
DS Smith Plc                                         020 7932 5000
Tony Thorne, Group Chief Executive
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager

Financial Dynamics                                   020 7269 7291
Richard Mountain/Robert Gurner




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