Trading Statement

Smith (DS) PLC
11 March 2002

                    DS SMITH PLC - UPDATE ON CURRENT TRADING


In the light of continuing difficult market conditions for its office products
businesses, DS Smith Plc has issued the following update.

At the interim results on 5 December 2001 DS Smith reported a fall in operating
profit for Spicers, the Group's office products wholesaling business,
principally due to the sharp market slowdown, affecting volumes and margins.
Spicers has since seen a further fall in market demand and has also incurred
additional costs, principally due to resolving overdue debts in the UK and IT
related service disruption in Germany.

Action is being taken to improve performance.  Management is being strengthened,
processes tightened, costs taken out and where service levels have slipped they
are being restored to their previous high levels.  Meanwhile, the market remains
weak and, as a result, the Group expects Spicers' profit in the second half of
the financial year to be lower than in the first half.

The Group's office products manufacturing business has also been affected by the
downturn in the office products market and is likely to make a small trading
loss in the second half of the year.  As a result, further restructuring of this
business is likely for which there would be an additional cost of around £2
million this financial year.

Trading in the Group's larger business segment, packaging, is as outlined in
December. All divisions are performing well, with good progress in particular in
the corrugated and plastics packaging operations.  This business segment is
expected to finish ahead of the previous year though performance in the second
half will not be as strong as in the first half, mainly due to weaker paper
prices.

Following a review of the carrying value of its fixed assets and goodwill, the
Group expects to take an exceptional impairment charge of approximately £30
million in the current financial year. This relates mainly to office products
manufacturing and the Group's corrugated packaging operation in Turkey where,
despite a better operating performance, there is little sign of improvement in
that country's economic environment.

The Group is benefiting from improvements in operational efficiency. The current
trends in the packaging and paper businesses are expected to continue into the
next financial year. The outlook for office products is hard to forecast but the
Group is confident that, with the actions being taken, Spicers will be well
placed to benefit from any upturn in the office products market.

DS Smith will announce its preliminary results for the financial year ended 30
April 2002 on 27 June 2002.

11 March, 2002


For further information, contact:

Tony Thorne, Chief Executive Officer, DS Smith Plc        020 7932 5000
Paul Froud, Group Communications Manager, DS Smith Plc    020 7932 5000
Richard Mountain, Financial Dynamics                      020 7269 7291



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