AGM Statement

Smith (DS) PLC
10 September 2004


             Chairman's Statement to the Annual General Meeting
                               10 September 2004


DS Smith Plc, the international packaging and office products supplier, today
issued the following statement at its Annual General Meeting.

In financial year 2003/04, DS Smith produced a creditable result in tough market
conditions.  The Group benefited from the continued focus on raising operational
performance with further profit advances in Corrugated Packaging and Office
Products Wholesaling.

As announced on Wednesday, we are encouraged by the provisional finding of the
Competition Commission's inquiry that our completed acquisition of LINPAC
Containers is not expected to lead to a substantial lessening of competition.
We will continue to work closely with the Competition Commission during the
finalisation of its inquiry, which is expected by 3 November 2004.  We note the
Competition Commission's comments regarding competitive behaviour in the sheet
market and are providing information to the Office of Fair Trading as part of
their investigation into this segment of the market.

Trading conditions in the current year have been broadly as indicated in the
announcement accompanying the Group's preliminary results in June and our
performance has reflected this.  At that time, we reported that in Paper the
April price rise would not be sufficient to restore Paper margins which are
being squeezed further by increases in energy costs.  These factors are
adversely affecting our Paper results to a significant extent.  On the other
hand, our Corrugated Packaging businesses in the UK and continental Europe have
continued to make progress, primarily through operational improvement and their
focus on higher value added segments.  LINPAC Containers continues to be
operated separately and is performing in line with our expectations.  In Plastic
Packaging, the returnable transit packaging operations have performed well but
liquid packaging and dispensing sales have been held back by lower offtake from
the beverage sector.  Spicers has continued to perform solidly in its major
markets and preparations are well advanced for its launch in Italy.

DS Smith will issue a trading update in mid October, prior to the close of the
first half of the financial year.

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


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