Demerger

Smith WH PLC
30 August 2006

                                                                  

                                  WH Smith PLC

 Scheme expected to become effective and trading expected to commence in shares
                               of Smiths News PLC


All the conditions to the scheme of arrangement of WH Smith PLC (the 'Scheme')
in connection with the proposed separation of the WH Smith Retail business from
the News business via a demerger have now been satisfied or are shortly expected
to be satisfied. The Scheme is expected to become effective shortly after 7.30am
(BST) today. At this time Smiths News PLC ('Smiths News') will become the
ultimate holding company for the WH Smith Group.

Consequently, WH Smith PLC shares are expected to be delisted and trading in
Smiths News shares under the ticker 'NWS' is expected to commence on the London
Stock Exchange at 8.00am (BST) today. CREST accounts will be credited with
Smiths News shares at 8.00am (BST) today. Shareholders will, on 8 September
2006, be sent share certificates in respect of their holdings in Smiths News.

The Demerger is expected to become effective at the close of business on 31
August 2006. It is expected that trading in New WH Smith shares will commence on
1 September 2006. Until then, Smiths News PLC will be the ultimate holding
company of the WH Smith Group comprising both the Retail business and the News
business.


Enquiries:

WH Smith
Mark Boyle     Investor Relations   020 7851 8820
Louise Evans   Media Relations      020 7851 8850


The contents of this announcement have been issued by and are the sole
responsibility of WH Smith PLC.

Greenhill & Co. International LLP, which is regulated in the UK by the Financial
Services Authority, is acting for WH Smith PLC as financial adviser and sponsor
and is acting for Smiths News PLC and New WH Smith PLC as sponsor in connection
with the demerger and for no one else and will not be responsible to any other
person for providing the protections afforded to its clients, or for providing
advice in relation to the demerger.

This announcement is an advertisement and does not comprise a prospectus
relating to Smiths News PLC or New WH Smith PLC. It does not constitute or form
part of any offer of securities, or constitute solicitation of any offer of
securities. You should not purchase or subscribe for securities referred to in
this announcement except on the basis of information in the prospectuses
published in relation to Smiths News PLC and New WH Smith PLC (and any
supplement or amendment thereto).

This announcement does not constitute a recommendation concerning the demerger,
and should not be construed as legal, business, tax or investment advice. The
value of shares can go down as well as up. Past performance is not a guide to
future performance.

Shares in Smiths News PLC and/or New WH Smith PLC have not been and will not be
registered under the United States Securities Act of 1933 (as amended) and will
be issued in transactions that are exempt from or not subject to the
registration requirements of such Act. In addition, shares in Smiths News PLC
and/or New WH Smith PLC have not been and will not be registered under the
securities laws of any state of the United States, and will be issued in
reliance on available exemptions from such state law registration requirements.


                                      ENDS



                      This information is provided by RNS
            The company news service from the London Stock Exchange