Automotive Sale Statement

Smiths Group PLC
10 January 2001

Update regarding Sale of Automotive Division

The merger of Smiths Group plc ('Smiths Group') and TI Group plc ('TI') was
completed on 4th December, 2000.

The sale of the TI Group Automotive Systems Division ('TIASD') has been and
continues to be supervised by a Trust Board. The Trust Board comprises three
members with equal voting rights, two appointed by TI (Brian Walsh, a former
Finance Director of TI and Rudolph Mueller, a former non-executive director of
TI), and one appointed by Smiths Group, Keith Butler-Wheelhouse, Chief Executive
of Smiths Group.   

Smiths Group has been informed by the Trust Board supervising the sale of
TIASD that second round bids have been received for the business. These bids
are subject to significant conditionality and have been affected by current
conditions in financing and automotive markets. Any reduction in the final
sale price will affect the value of the payment to former TI shareholders.  As
stated in the merger documentation, there is no assurance of deferred proceeds
for those holding letters of contingent entitlement.  Negotiations with
bidders are continuing.

The sale process will continue under the mechanism established in the merger
agreement and outlined above. Unaudited profits of TIASD for the 12 months to
the end of December were in line with analysts' expectations. The Board of
Smiths Group wishes to emphasise that TIASD does not form part of the Group's
strategy for creating future shareholder value.


Further enquiries:
Russell Plumley        [phone]