Trading Statement

Smith(David S)(Holdings) PLC
20 February 2001



David S. Smith (Holdings) PLC : Update on current trading

In view of changing market conditions and in anticipation of forthcoming
planned meetings with institutional investors, the Company has issued the
following trading update.

Since the Group announced its interim results on 6 December 2000, sales
volumes in the Group's UK paper and packaging businesses have weakened. As a
consequence, we are taking more plant downtime than expected. High energy
prices are also having an impact on margins. Trading elsewhere in the Group is
as expected and remains encouraging.

The Group now expects that its performance in the second half of the current
financial year will be similar to the same period last year, which would still
give a significant improvement for the full year over the previous year.





Enquiries:

Peter Williams, Group Chief Executive, David S. Smith (Holdings) PLC

David Buttfield, Group Finance Director, David S. Smith (Holdings) PLC

Paul Froud, Group Communications Manager, David S. Smith (Holdings) PLC

Tel: [phone]

Fax: [phone]

Press Enquiries:

Richard Mountain, Financial Dynamics

Tel: [phone]