Acquisition of US Hotel Retailing Business - $19m

Smith (W.H.) Group PLC
31 January 2000


ACQUISITION OF USA HOTEL RETAILING BUSINESS FOR $19M

WHSmith has acquired Hazelwood Enterprises Inc for $19m.

Hazelwood operates stores in 70 hotels in the USA, mainly centred in
the South West region.  In the year to 31 December 1999, it had sales
of $18m, earnings before interest, tax, depreciation and amortisation
of $4.5m and profit before administration, interest and tax of $4.1m.

WHSmith currently has sales of approximately $310m in the USA with 450
stores, of which 300 are in hotels. It is following a policy of
aligning its USA business more closely with the UK brand.

WHSmith's worldwide sales from stores in travel locations amount to
£290m, with 650 stores, including the USA and recent developments in
Hong Kong, Singapore and Sydney.

Richard Handover, Chief Executive, said:  'This is an important
strategic development for our US business.  We have been seeking to
identify valuable infill opportunities and Hazelwood is a well run
business, which represents a good financial opportunity to
significantly strengthen our position as the leading player in this
attractive market.'

It is estimated that the transaction will be completed by the end of
February.

Enquiries:

Tim Blythe, Corporate Affairs Director                 0171 409 3222