Medicare Reimbursement

Smith & Nephew Plc
11 August 2000

                                                                     
      Medicare Reimbursement Approval Received for Exogen 2000

Medicare reimbursement approval has been received in the US by Smith
& Nephew plc, the global medical devices company, for its Exogen 2000
product, a non-invasive, low intensity pulsed ultrasound device used
to heal bone fractures more effectively.

The approval by the Health Care Financing Administration (HCFA)
enables Exogen to be made available to those Americans who are
covered by Medicare and covers non-unions, or fractures where the
site shows no visible signs of healing.  It is the first time that
HCFA has approved reimbursement of a stimulation device for use on
all bones, not just long bones.  HCFA administers Medicare, the
largest insurance programme in the US, covering some 39 million
people over the age of 65.

'The HCFA approval will have a significant impact on overall
reimbursement for the Exogen product, as additional payers often look
to Medicare as a guide for reimbursement of new and innovative
technologies,' said Chris O'Donnell, Chief Executive of Smith &
Nephew.  'HCFA's thorough review of Exogen should give the medical
community even further confidence in the Exogen therapy and will
enable us to continue to grow our sales in the bone stimulation
market.'


Enquiries:

Margaret  Stewart, Director of Communications Tel: [phone]
Smith  &  Nephew plc                          Fax:[phone]

David Yates                             Tel: [phone]
Financial  Dynamics                     Fax: [phone]


Notes to Editors

Exogen is a non-invasive medical device that delivers ultrasound
through the skin in a focused area at the fracture site.  The patient
feels nothing in the daily 20 minute treatment.  Exogen's proprietary
ultrasound technology is based on the well-established principle that
bone growth is stimulated by mechanical force.  The Exogen device has
been shown to stimulate the healing of hard-to-heal fractures as well
as accelerate the healing of fresh fractures.

Smith & Nephew acquired Exogen in 1999 and has integrated the
business into its global Orthopaedics division, based in the US.  So
far, the therapy has been prescribed in the US for more than 18,000
patients.  The device received Food and Drugs Administration approval
to market Exogen 2000 for fresh and non-union fractures in February
of this year.