Re Contract

Smiths Group PLC
28 October 2001

JSF Decision Offers Smiths Aerospace $10 Billion Opportunity

The announcement that Lockheed Martin has been awarded the Joint Strike
Fighter (JSF) program, is expected to bring Smiths Aerospace new business
valued at more than $10 billion over the lifetime of the aircraft. Smiths
Aerospace is a key supplier of electronic, electrical and mechanical systems
to the Lockheed Martin program.

Contracts valued at around $1 million per aircraft have already been secured,
with a number of systems contracts still to be awarded ahead of the aircraft's
development phase. Smiths Aerospace holds high expectations of further
success. Substantial additional business will follow, once the JSF has entered
service, through spares support and system upgrade programs.

Keith Butler-Wheelhouse, chief executive of Smiths Group commented, 'Smiths
congratulates Lockheed Martin and its team members on this important win. This
is clearly the biggest business opportunity ever for Smiths Aerospace, a
reward for the advanced technologies we have developed. Our employees are now
keen to apply their skills experience to make JSF a success.'

Key systems from Smiths Aerospace on the JSF will include the Electrical Power
System (teamed with Hamilton Sundstrand) and a number of electronic control
systems including weapons control. There are actuation packages and components
included in the engine structure and other parts of the airplane. These
systems will be developed and manufactured at Smiths Aerospace U.S. facilities
in Florida, Michigan, New Jersey, Indiana and Washington and in the UK at
Cheltenham and Wolverhampton.

Delivery of the systems will commence in 2003 during the engineering and
manufacturing development phase. Low Rate Initial Production (LRIP) will
commence in 2006 with the first of six lots, consisting of 13 aircraft.
Full-rate production of the aircraft will begin in 2010 continuing until 2026.
The JSF is the single most important new military aircraft to be produced over
the next 30 years. The JSF market consists of 3,002 aircraft for the U.S. Air
Force, U.S. Navy, U.S. Marine Corps, Royal Navy and Royal Air Force. Another
2,000 are expected to be sold for export.

Smiths Aerospace is the leading transatlantic aerospace equipment company,
with 12,000 staff and $2 billion revenues. Smiths Aerospace holds key
positions in the supply chains of all major military and civil aircraft and
engine manufacturers and is a world-leader in electronic systems, actuation
systems and precision components.

For further information contact:
Richard Bayliss
Tel: [phone]