S&N to settle with DoJ

Smith & Nephew Plc
27 September 2007



Unit of Smith & Nephew one of five companies to settle with U. S. Attorney in
New Jersey



27 September 2007



Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business,
announced today that its Orthopaedic Reconstruction business unit, an operating
division of its U.S. subsidiary, Smith & Nephew, Inc., has reached a civil
settlement agreement with the U.S. Attorney for the District of New Jersey
(USDOJ)  following an industry wide investigation.  The orthopaedic
reconstruction unit of Smith & Nephew and the four other major U.S. orthopaedic
companies received subpoenas from the USDOJ in March 2005 requesting copies of
all consulting contracts with surgeons.  Since that time the USDOJ has conducted
an industry wide investigation into the vital relationships between surgeons and
the orthopaedic implant industry.



Smith & Nephew has co-operated fully with the USDOJ throughout the investigation
and has now reached an agreement with the USDOJ to pay $28,929,840 in civil
restitution.  Smith & Nephew and the four other companies have also entered into
similar agreements which will be in force for 18 months.  As part of each
agreement a separate external monitor will be appointed to oversee contracts
between each company and its consulting surgeons.  The agreement between Smith &
Nephew and the USDOJ is entirely voluntary and Smith & Nephew has neither
admitted guilt nor agreed to allegations as part of this settlement.



David J. Illingworth, Chief Executive of Smith & Nephew plc, commenting on the
settlement said 'We have worked closely with the U. S. Department of Justice to
refine compliance procedures which apply across the industry and enable the best
outcome for the patient, the surgeon, the hospital, private payers and Medicare.
  We are satisfied that the industry wide compliance program made uniform by
this settlement will ensure continued, appropriate  use of consultants, and we
look forward to working with the monitor for the next 18 months.  We continue to
work towards our goal of helping patients regain their lives.'



Enquiries


Investors

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

Media
Jon Coles                                  Tel:   [phone]
Brunswick - London

David Shapiro                              Tel:   [phone]
Brunswick - Washington




About Smith & Nephew



Smith & Nephew is a global medical technology business, specialising in
Orthopaedic Reconstruction, Orthopaedic Trauma and Clinical Therapies, Endoscopy
and Advanced Wound Management products.  Smith & Nephew is a global leader in
arthroscopy and advanced wound management and is one of the leading 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 9,600 employees
and operates in 31 countries around the world generating annual sales
approaching $2.8 billion.



Forward-Looking Statements



This press release contains certain 'forward-looking statements' within the
meaning of the US Private Securities Litigation Reform Act of 1995.  In
particular, statements regarding expected revenue growth and trading margins
discussed under 'Outlook' are forward-looking statements as are discussions of
our product pipeline.  These statements, as well as the phrases 'aim', 'plan',
'intend', 'anticipate', 'well-placed', 'believe', 'estimate', 'expect',
'target', 'consider' and similar expressions, are generally intended to identify
forward-looking statements.  Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors (including, but not
limited to, the outcome of litigation, claims and regulatory approvals) that
could cause the actual results, performance or achievements of Smith & Nephew,
or industry results, to differ materially from any future results, performance
or achievements expressed or implied by such forward-looking statements.  Please
refer to the documents that Smith & Nephew has filed with the U.S. Securities
and Exchange Commission under the U.S. Securities Exchange Act of 1934, as
amended, including Smith & Nephew's most recent annual report on Form 20F, for a
discussion of certain of these factors.



All forward-looking statements in this press release are based on information
available to Smith & Nephew as of the date hereof.  All written or oral
forward-looking statements attributable to Smith & Nephew or any person acting
on behalf of Smith & Nephew are expressly qualified in their entirety by the
foregoing.  Smith & Nephew does not undertake any obligation to update or revise
any forward-looking statement contained herein to reflect any change in Smith &
Nephew's expectation with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.




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