Offer Update

Smith & Nephew Plc
20 May 2003

20 May 2003



                   Smith & Nephew Update on Centerpulse Offer

Smith & Nephew notes this morning's announcement by Zimmer Holdings, Inc.
concerning Centerpulse AG.

The Board of Centerpulse gave Smith & Nephew's offer full and careful
consideration and unanimously recommended it to its shareholders.  By contrast,
Zimmer's proposed offer for Centerpulse is subject to a number of additional
conditions and to a period of due diligence, following which Zimmer has reserved
the right to reduce its offer price.

Smith & Nephew will continue to monitor the situation.

Enquiries:

Smith & Nephew
Angie Craig                                        Tel: [phone]
Corporate Affairs Director

Financial Dynamics
David Yates                                        Tel: [phone]



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