AGM Statement

Smiths Group PLC
12 November 2002

Smiths Group, Annual General Meeting.
Chairman's statement on the current outlook

Speaking at the AGM held at 12:00 noon today at 10 Aldermanbury, London EC2,
Keith Orrell-Jones, Chairman of Smiths Group said:

 'In the Report & Accounts, the Chief Executive indicates that, while we are not
counting on an upturn in the general economic climate, the performance of Smiths
will remain robust in the period ahead.   This view is based on a combination of
factors, some working in the company's favour, others less so.



 'The current downturn in the commercial aerospace sector is having an
increasing impact on our sales to the aircraft manufacturers and the airlines.
Enhanced airport security requirements have led to considerable demand for our
detection equipment, sales of which will be concentrated in the second half.
The outlook for the capital goods market, into which we sell our industrial
products and seals, remains at the low end of our expectations.



'As previously indicated, two non-operational items will impact the current
year: the relative weakness of the dollar and an increased pension expense.
With regard to our TI Automotive preference shares, the receipt of any dividend
this year is uncertain.



'The markets for defence, healthcare and detection equipment are relatively
strong and our activities in these areas continue to thrive.  In detection, the
acquisition of Heimann, which will be completed shortly, will double the size of
our business in this fast-growing sector.



'We continue to make operational cost savings, from downsizing where necessary,
from moving production to lower-cost regions and from better supply chain
management.



'Taken together, these factors lead the company to believe that our performance
this year should be close to that achieved in 2002, although likely to be more
weighted towards the second half.   The company's cash-flow and balance sheet
remain strong.'

                                 _____________



Mr John Hignett retired from the Board of Smiths Group plc at the AGM.


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