Re Joint Venture

Smith & Nephew Plc
2 April 2001

2 April 2001

                  Commencement of operations of BSN Medical

Smith & Nephew, the global medical devices company, today announced the
commencement of operations of BSN Medical, its joint venture with Beiersdorf
AG which combines both their traditional woundcare, casting, bandaging and
phlebology businesses. It also announced the completion of the acquisition of
Beiersdorf's advanced woundcare business for £30m.


Both transactions were announced in November last year, with an anticipated
completion date of April 2001.


BSN Medical is owned 50% by each parent and will be independently managed by a
team drawn from both parents, led by Chief Executive, Graham Siddle, who was
until recently the Commercial Director of Smith & Nephew. Headquartered in
Germany, BSN Medical has sales of £300m, over 3,000 employees and
manufacturing facilities in UK, US, Germany, France, Ireland, South Africa,
Mexico and Pakistan. The joint venture allows flexibility for both parents'
continuing involvement after the first five years.


Smith & Nephew's advanced woundcare business produces technologically advanced
products for difficult to heal wounds such as leg ulcers, pressure sores and
burns. Today's completion of the acquisition of Beiersdorf's advanced
woundcare business marks a further stage in strengthening the group's global
leadership position in this important market. The acquisition will provide
Smith & Nephew with critical mass in a number of key markets, particularly
Germany, and bring with it leading brands such as Cutinova for moist wound
healing and Leukostrip/clip for wound closure.


Chris O'Donnell, Chief Executive of Smith & Nephew said: 'We believe the
creation of the joint venture is the best way to maximise the value of these
businesses for the parent companies and their shareholders. The parents have
appointed a first class management team at BSN Medical, and are confident that
they will achieve a successful future for the new company.'


Graham Siddle, Chief Executive of BSN Medical, said: 'BSN Medical begins life
as a significant player in the global medical devices market with leadership
positions in many of its strategic segments. We intend to build on this,
becoming a highly efficient, cost effective business that will generate both
sales opportunity and operational synergies. We are determined that BSN
Medical will deliver strong returns to our shareholders.'




Enquiries:

Margaret Stewart, Group Director, Corporate Affairs  Tel: [phone]
Smith & Nephew plc                                   Fax: [phone]

Fiona Noblet                                         Tel: [phone]
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