Capital Reorganisation

Smith & Nephew Plc
17 November 2005


17 November 2005



Smith & Nephew plc Circular to Shareholders to Redenominate its Share Capital
into US Dollars.

As previously announced, Smith & Nephew plc intends to redenominate its share
capital from sterling into US dollars and has today sent a circular to its
shareholders seeking approval to this change. The necessary extraordinary
general meeting will be held in London on 12 December 2005.

As approximately half of Smith & Nephew's group revenues, trading profits and
operating assets are in US dollars, the Directors consider it advantageous for
the Company to redenominate its functional currency into US dollars and for the
Group to report its results and state of affairs in US dollars, so as to reduce
its exposure to foreign exchange fluctuations relative to its capital base.

Under the proposals being put to shareholders:
     
•    Shareholders will have the same number of shares after the redenomination 
     as they had before;
     
•    Smith & Nephew will continue to be listed on the London Stock Exchange and 
     quoted in sterling;
     
•    Shareholders' rights to vote will not be affected; and

•    Dividends will continue to be paid in sterling to those shareholders whose 
     address on the Register is in the UK. Shareholders in the rest of the
     world will receive their dividends in US dollars. Shareholders will, 
     however, be able to elect to receive their dividends in either US dollars 
     or sterling.

A copy of the circular describing these proposals in full can be found on the
website at www.smith-nephew.com and is available at the Document Viewing
Facility, Financial Services Authority, 25 The North Colonnade, Canary Wharf,
London E14 5HS.


Enquiries

Investors / Media
Liz Hewitt                         Tel:     [phone]
Smith & Nephew Group Director Corporate Affairs



About us

Smith & Nephew is a global medical technology business, specialising in
Orthopaedics, Endoscopy and Advanced Wound Management products.  Smith & Nephew
is a global leader in arthroscopy and advanced wound management and is one of
the fastest growing global orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives.  The company
prides itself on the strength of its relationships with its surgeons and
professional healthcare customers, with whom its name is synonymous with high
standards of performance, innovation and trust.  The company has over 8,500
employees and operates in 33 countries around the world generating annual sales
of £1.25 billion.



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