Trading Update

Smith (DS) PLC
15 October 2003



                                                                 15 October 2003


                                  DS SMITH PLC

                            PRE-CLOSE TRADING UPDATE


DS Smith Plc (LSE:SMDS), the international packaging manufacturer and office
products wholesaler, is releasing the following trading update prior to the half
year end on 31 October 2003.


The trading environment in the financial year to date has remained difficult,
particularly for our Paper business, but the performance of the other parts of
the Group has been satisfactory and at present we anticipate results for the
full year being broadly in line with expectations.



Paper and Corrugated Packaging



Our Paper operations are being impacted by the downswing in the paper cycle.  As
indicated in the preliminary results announcement, margins have been squeezed by
falling paper prices, the fluctuating cost of recovered paper and lower demand
for Packaging Recovery Notes, following the government's decision not to
increase recycling targets for 2003.  We have achieved good production volumes
but with the sales mix including a higher proportion of exports.  In Corrugated,
although prices are weakening, our operations continue to make good progress due
to the benefit from acquisitions, better operating efficiencies and targeting
higher added value segments.



In the first half of the year, profit progress in Corrugated is expected
partially to offset the lower profit in Paper.





Plastic Packaging



In the first half, we have continued to grow sales in our core markets of liquid
packaging and dispensing and in returnable transit packaging.  However, margins
have been affected by the competitive environment and sales mix.  Profits for
the full year are expected to be broadly in line with 2002/03.





Office Products Wholesaling



Market conditions for office products across Europe remain tough.  Nevertheless,
Spicers is expected to make further progress this year through operational
improvement.  Spicers UK has continued to perform well by maintaining high
service levels and lowering costs.  In France, where we have a leading position,
our results have been affected by the market slow-down, which began later than
in the UK.  At Spicers Germany, customer confidence in our service capability is
resulting in a good rate of sales growth although results have been affected by
a limited number of bad debts.  Spicers Spain is exceeding sales growth
expectations.





Office Products Manufacturing



Intense competition from imported products has impacted John Dickinson's profits
but it continues to benefit from the cost reduction undertaken in 2002.


DS Smith's Interim results for the half year to 31 October 2003 will be
announced on

10 December 2003.




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 7221
Richard Mountain/Robert Gurner




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