Trading Statement

Smith & Nephew Plc
13 September 2005


Smith & Nephew - Trading Update


13 September 2005


Ahead of an analysts visit to the US later this week, Sir Christopher O'Donnell,
Group Chief Executive of Smith & Nephew plc (LSE: SN, NYSE: SNN) the global
medical technology business, made the following comments on trading today:

'Sales growth over the summer has been below expectations, partly influenced by
Hurricane Katrina during August.  In Orthopaedics sales growth of knee products
was slower following new product roll-outs by competitors.  In consequence, and
coupled with the continuing difficulties in Louisiana and Mississippi, Smith and
Nephew is reducing its full year guidance for underlying sales growth for
Orthopaedics by 1% to 17%.  In Wound Management a continued decline in US
distributor inventories has caused us to reduce full year guidance for
underlying sales growth for Wound Management by 1% to 5%.'

'The benefit of translational currency has reduced from 11/2% to 1/2% of sales,
for the full year, following the recent decline in the US dollar versus Smith
and Nephew's reporting currency, sterling.  A further consequence is that the
trading margin for the full year will be slightly lower at approximately 20.6%
and full year EPS growth will be 12 - 13%.'

Smith & Nephew will start its close period on 30 September ahead of announcing
results for the third quarter on 27 October.

A conference call for analysts will be held today at 12.00pm BST / 7.00am EST.
For details contact Samantha Hardy on [phone].  The call will be
audio webcast live at www.smith-nephew.com and a recording will be available
shortly afterwards.


Enquiries

Investors

Peter Hooley                                   Tel:        [phone]
Smith & Nephew Group Finance Director
                                               
Investors / Media                              
Liz Hewitt                                     Tel:       [phone]
Smith & Nephew Group Director Corporate Affairs


About us

Smith & Nephew is a global medical technology business, specialising in
Orthopaedics, Endoscopy and Advanced Wound Management products.  Smith & Nephew
is a global leader in arthroscopy and advanced wound management and is one of
the fastest growing 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 over 8,500
employees and operates in 33 countries around the world generating annual sales
of £1.25 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 operating 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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