RE: Supply agreement with BPB

Smith (DS) PLC
03 March 2005


3 March 2005


             DS SMITH PAPER DIVISION SIGNS SUPPLY AGREEMENT WITH BPB


DS Smith, the international paper and packaging manufacturer and office products
distributor, announces that its St Regis Paper division has entered into a long
term agreement with BPB plc, the world's leading producer of plasterboard, for
the supply of plasterboard liner paper.  Under this agreement, which builds upon
St Regis' existing supply relationship with BPB, sales of plasterboard liner
paper to BPB will grow to an annual rate of approximately 100,000 tonnes.
Combined with sales of plasterboard liner to other plasterboard producers, this
will make St Regis a major player in this important growth market.

To underpin BPB's requirements for premium quality plasterboard liner, St Regis
announces a £30 million capital expenditure programme to upgrade existing
machines at its mills at Kemsley in Kent and Wansbrough in Somerset over the
next two years. This investment programme will also enhance the quality of St
Regis' corrugated case material (CCM) liners, used for manufacturing corrugated
packaging board, and coreboard, used for manufacturing tubes.  Following the
investment, St Regis' total output will increase to approximately 1.1 million
tonnes of paper, of which 90% will be made from recycled recovered paper and 75%
will be CCM.

Tony Thorne, DS Smith Group Chief Executive commented:

'We are pleased to be entering into this partnership with BPB.  St Regis has
used its technical expertise to develop its business in plasterboard liner, a
product which must meet stringent strength and appearance standards.  The
investment at our Kemsley and Wansbrough mills will expand capacity and further
enhance quality across their product ranges.  This agreement and capital
expenditure supports our drive to raise the returns from our UK Paper and
Corrugated Packaging operations.'



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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