Trading Statement

Smiths Group PLC
02 August 2005

News Release
London, Tuesday 2 August 2005
For immediate release

                          Year-End Trading Statement

Smiths Group will announce its preliminary results for the year ended 31 July,
2005, on Thursday, 22 September.  At the start of its close period the company
is issuing the following trading update, based on estimates and subject to
adjustment.

As forecast at the time of the interim results, the strong sales and profit
growth momentum seen in the first six months has been sustained through the full
year.

Sales have increased by 11%, and headline* operating profit is expected to be
approximately 16% ahead of the prior year, reflecting a half percent net margin
improvement.  All four divisions are expected to have achieved double-digit
improvements in operating profit.   This divisional performance has been
achieved despite a currency translation impact of approximately £11m caused
primarily by the weaker dollar, and a higher level of investment in R&D.  In
addition to good organic growth, recent acquisitions have made a valuable
contribution, and their integration is proceeding well.

The company expects to report an increase in pre-tax profit of around 17%,
resulting in headline* earnings per share in line with the market consensus of
54p, compared with 45.9p in 2004.

Net debt at the year-end will be in the region of £950m, principally due to
recent acquisitions.  Increased capital expenditure and a higher level of
working capital is expected to result in a lower than normal conversion of
operating profit into cash.   Exceptional charges are likely to be in the region
of £50m, comprising the second year of the restructuring programme commenced in
2004, the initial phase of Medex integration and the settlement of the
litigation involving the Cozmo diabetes pump.

Following publication of the 2005 Accounts, the results will be restated under
International Financial Reporting Standards (IFRS), to allow easier comparison
with the years ahead.  As indicated in July, had IFRS been adopted for 2005, the
effect would have been to increase pre-tax profit by about 6% compared with the
current UK GAAP basis.  For the new financial year to July 2006, the company
will publish its results using IFRS.

The company is confident of the prospects for growth in 2006.   In the sectors
important to Smiths, the market outlook remains positive.   Additionally, recent
acquisitions are yielding synergy benefits, increased investment in product
development is paying off, and the continuous productivity drive will enhance
profitability.
                                     - o -

*  'Headline' profits and earnings per share are before exceptional charges and
   amortisation of goodwill.

The company will hold a conference call for analysts and investors at 2.00pm
today, London time.    The call can be accessed on:


UK toll free number:           0800 018 0764              US toll free number:         1-877 951 7311
Passcode:                      Year-End                   Leader:                      Russell Plumley


From 4.00pm, a recording of the call can be heard on:

UK toll free number:           0800 376 9053              US toll free number:         1-866 851 5334


Media:                                                Investors:
Chris Fox                                             Russell Plumley
[phone]                                  [phone]
[e-mail]                            [e-mail]




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