AGM Statement

Smith (DS) PLC
06 September 2006



                                                               6 September 2006



               Chairman's Statement to the Annual General Meeting

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

As indicated in the June announcement of the Group's Preliminary Results,
profits in the first half of the current financial year are being adversely
affected by both high input costs within Packaging and stronger competition in
UK Office Products Wholesaling.  However, we expect the strategic and
operational actions we have taken to positively impact results in the second
half and that trading performance for the full year will be as previously
outlined.

In Paper and Corrugated Packaging, the market has been relatively strong during
the summer period although the UK continues to be weaker than continental
Europe.  The net cost of waste paper, our principal raw material, has continued
to increase as a result of rising demand from Asia and the falling value of
Packaging Recovery Notes.  The increase in the Group's underlying energy costs
in 2006/07 is expected to be in line with previous indications.  To mitigate the
ongoing high level of input costs, we have implemented another paper price
increase and we are also raising box prices further in both the UK and
continental Europe.

We recently announced another important strategic step towards raising the
returns of the Group's Paper operations through the proposed closure of Taplow
Mill and the sale of the Taplow site with a substantial net cash benefit.

In Plastic Packaging, the improving trend of results in the second half of 2005/
06 has continued in the early months of 2006/07.

As previously indicated, Spicers' results in the first half of 2006/07 are
expected to be significantly lower than in the same period of last year.  An
immediate priority is to raise profits in the important UK business and an
extensive action programme is under way.  We expect to see the initial benefits
of this programme in the second half of the financial year.  Spicers'
continental European businesses continue to perform satisfactorily.

As is our normal practice, we 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
Tony Thorne, Group Chief Executive                              020 7932 5000
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager

Financial Dynamics                                              020 7269 7121
Richard Mountain/Susanne Walker






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