Re Contract

Smiths Group PLC
7 June 2001

Smiths Aerospace to supply key avionics systems for C-130 modernisation
programme

Smiths Aerospace has been selected to supply key systems on the Boeing C-130
Avionics Modernization Program (AMP) for more than 500 aircraft in U.S. Air
Force service. Smiths Aerospace will supply the following systems valued at
over $250 million, with additional opportunities in customer services:

  * Flight Data Recorder/Cockpit Voice Recorder
  * Flight Management System including the Communications Management Unit
    and the Terrain Awareness Warning System
  * Multi-Function Control Displays
  * Integrated Standby Instrument System
  * Aircraft Interface Unit
  * Mission Display Processor including Digital Map
  * Electrical Power Generation Control & Conversion including the Generator
    Control Unit, Bus Switch Unit and Regulated/Transformer Rectifier Unit (R/
    TRUO ).

Smiths Aerospace will shortly commence engineering development, which will
take place for the next 3 years. The programme will be managed at the
company's facility in Grand Rapids, Michigan, with product deliveries
beginning in 2004.

Keith Butler-Wheelhouse, Chief Executive of Smiths Group commented 'This
important programme enables Smiths to continue its long and proud association
with Boeing. The acceptance of the avionics technology we have developed,
together with our integrated systems approach, are important for Smiths
further success in the medium and long-term on both civil and military
aircraft.'

The Boeing Company will perform aircraft modifications at the Boeing Aerospace
Support Center in San Antonio, Texas. The Air Force will also perform
modifications at Warner Robins Air Logistics Center, Georgia and Ogden Air
Logistics Center in Utah. Modification kit installations will begin in 2004
and continue through 2014, and will reach a rate of about 70 per year at peak
production.

Press enquiries to:
Richard Bayliss
Tel: [phone]
[e-mail]

Notes to editors:

The new avionics system for the C-130 features the proven flight management
system from the B737 commercial airliner, which provides navigation, safety
and communication improvements to meet Global Traffic Management requirements.
Overall, the modernisation effort offers improved workload management for
flight crews as well as reduced total ownership costs for the C-130 fleet.

The Boeing Company has been selected to perform the C-130 Avionics
Modernisation Program, which has a total potential value of approximately $4
billion. Final contracts will be signed pending program approval by the
Defense Department's Defense Acquisition Board.

'Our integrated flight management systems organisation provides the benefit of
using the latest commercial technology to enhance military mission performance
while maintaining airspace compatibility', said Mike Grady, vice president,
Avionics Systems, Smiths Aerospace. 'The systems approach of bringing our key
product capabilities together, will continue to be a major strength in
supporting our customers', commented Grady.

Smiths Aerospace supplies advanced electronic systems, components and
actuation systems to the world's major civil and military airframe
manufacturers, airlines and armed forces. Smiths Group is also a leading
supplier of sealing solutions, medical systems, and specialised industrial
products.