Product Launch

Smith & Nephew Plc
04 February 2003

News Release


Contact:    Angie Craig
            Corporate Affairs Director, Smith & Nephew plc
            [e-mail]
            020 7960 2296

            Andrew Burns
            Smith & Nephew Orthopaedics Media Relations
            [e-mail]
            001 901-399-5739


   Smith & Nephew Extends Revolutionary OxiniumTM  Technology to Hip Implants

 Next generation material reduces wear like ceramic but has toughness of metal


Memphis, Tenn. (February 4, 2003) -- Smith & Nephew Orthopaedics (FTSE: SN;
NYSE: SNN) today announces the introduction of the first entirely new bearing
surface for artificial hip joints in more than 20 years. The new implants are
made from the company's exclusive OxiniumTM  technology, a remarkable,
wear-reducing material that has the potential to substantially increase the
lifespan of implants while decreasing the need for patients to undergo future
corrective hip surgeries.

Already proven effective in a full range of knee implants, Oxinium technology
addresses two primary concerns surgeons have about hip implants--wear and
fracture, both of which can lead to premature implant failure and additional
surgery. Oxinium implants provide patients with the toughness of a metal implant
but the wear-reduction of ceramic, yet has been shown to have none of the risks
commonly associated with either material.

Chris O'Donnell, Chief Executive of Smith & Nephew, said:

'We have had tremendous success with the Oxinium oxidised zirconium material
since the launch of our Oxinium knees.  We now aim to bring the benefits of the
material to the hip patient community and expect it to be an important component
of our Orthopaedics growth moving forward.'

'Oxinium technology's best-of-both worlds qualities give back to surgeons the
confidence they've lacked when choosing between hip implant bearing surfaces,'
added Smith & Nephew Orthopaedics President Dave Illingworth. 'Presently,
surgeons have to choose between the strength of metals and the wear resistance
of ceramic surfaces. With Oxinium implants, surgeons and patients have the
benefits of both.'

During a hip replacement procedure, the surgeon removes the top portion of the
femur, replacing it with a metal stem with a ball on one end. In 90-percent of
cases, this metal ball is made from cobalt chrome, a tough metal able to
withstand the weight-bearing demands of the hip joint. The surgeon also removes
the acetabulum, or hip socket in the pelvis, replacing it with a metal shell and
plastic liner. Over time, as the new ball rotates against the plastic liner, the
liner wears down and a follow-up surgery, usually 10 to 15 years later, is
required to repair the implant.

In the past, surgeons have successfully reduced this life-shortening wear by
implanting a hard, low-friction ceramic ball rather than a tough metal ball. The
hardened surface of a ceramic ball resists the roughening associated with a
metal ball, thus reducing the rate at which it wears down the soft plastic
liner.

Although ceramics can extend the life of hip implants by reducing this wear, a
major recall of ceramic implants by French manufacturer Saint-Gobain Desmarquest
in 2001 reinforced surgeon concerns that some ceramic implants may be prone to
fracture inside patients. As a result, only ten-percent of procedures now
involve the use of ceramic implants.

'Before Oxinium components were available, the only recent bearing surfaces
developed to address these issues were variations on older technology,' explains
Dr. Robert Barrack of Tulane University Medical Center, who last year became the
world's first surgeon to implant an Oxinium hip ball. 'There's no doubt ceramic
implants' wear-reducing properties can extend the life of an implant since wear
is the leading cause of implant failure. But most surgeons believe the risks and
potential consequences for patients outweigh the benefits and they are hesitant
to use them now. Cobalt chrome, despite its inferior wear characteristics, is
the current standard material of choice.'

Oxinium technology may change that decision. Oxinium implants are made from
zirconium, an extremely biocompatible metal similar to titanium, the strong,
light metal used in orthopaedic implants and airplanes. The metal is heated and
infused with oxygen until the outer surface naturally transforms into a ceramic.
Rather than converting the entire implant into ceramic, only the outermost
portion of the implant--the layer that comes into contact with the plastic
cup--takes on ceramic's smooth, hard qualities. The entire component retains the
strength and flexibility of the original metal.

As a result, Oxinium hip implants are 4,900 times more abrasion-resistant than
cobalt chrome and reduce implant wear by nearly 50-percent. However, since it is
still a metal, the new implants have strength characteristics, such as shatter
resistance, similar to cobalt chrome--a unique combination in the orthopaedic
industry.

Each year, approximately 340,000 total hip replacement surgeries are conducted
in the U.S., and 600,000 are performed globally. Smith & Nephew is introducing
Oxinium hip implants for use in the United States, as well as in Europe,
Australia and Canada, and by year's end, expects them to account for 25-percent
of all of its hip ball implants.

The introduction of Oxinium hip components builds on Smith & Nephew's successful
application of the technology in knee implants. In five years of clinical use,
the company reports no material failures of Oxinium total knee implants.
Introduced for sale globally in February 2001, Oxinium knees are now available
in all three primary implant variations: cruciate-retaining, macrotextured and
posterior-stabilized. Later this year, Smith & Nephew will introduce a revision
option, as well as a less-invasive unicompartmental implant, or 'uni knee,' made
with the Oxinium technology.

In 2002, Oxinium knee implant sales grew at more than 300-percent, with
25-percent of all Smith & Nephew knees now being made from the new material. The
widespread acceptance of Oxinium technology has lifted Smith & Nephew to the
orthopaedic industry's leadership position for knee implant sales growth.

Dr. Richard Laskin, co-Chief of the Knee Service at the Hospital for Special
Surgery in New York City, will present the results of his five-year study of
Oxinium knee implants at the American Academy of Orthopaedic Surgeons convention
in New Orleans, February 5-7.

Smith & Nephew Orthopaedics (http://www.smith-nephew.com/orthopaedics) is a
leading provider of joint reconstruction, trauma and clinical therapy products.
Based in Memphis, Tenn., the company strives to combine industry-leading
technology with its history of clinically proven products to deliver simpler,
less invasive and more cost-effective procedures to the orthopaedic community.

The orthopaedics division is one of the three core businesses of Smith & Nephew
plc, a global advanced medical devices company with a highly successful track
record in developing, manufacturing, and marketing a wide variety of innovative
tissue repair products. These products are primarily in the areas of bone,
joints, skin, and other soft tissue. Smith & Nephew has extensive marketing and
distribution capabilities, with established sales in more than 90 countries.

Oxinium is a trademark of Smith & Nephew.

                                      ###


                      This information is provided by RNS
            The company news service from the London Stock Exchange