Internet Partnership with Carlton

Smith WH PLC
21 March 2000


Carlton and WHSmith in Internet Partnership

Carlton Communications Plc and WHSmith PLC announced today (21 March)
a deal to link their internet businesses and make them leading forces
in UK entertainment e-commerce.

Carlton Communications Plc and WHSmith PLC will share fully the risks
and rewards associated with the joint venture, unlike other e-commerce
alliances which are based on commission payments.

Michael Green, Chairman of Carlton, said:  'Carlton/WHSmith is a
powerful partnership.  Carlton brings online content, mass media
promotion and interactive potential, while WHSmith has a nationwide
retail presence, a strong online e-tail business and distribution and
fulfilment expertise.'

WHSmith Chief Executive, Richard Handover, said:  'This alliance will
immediately transform the scale of WHSmith in the online market.
Carlton's advertising will give both our businesses access to millions
of new customers, putting us in the forefront of UK retailing and e-
commerce.

'We are now established as the UK's leading multi-channel retailer,
reaching our customers wherever they want to shop.'

Under the agreement:

*  Carlton and WHSmith will co-brand, link and cross promote their web
sites www.whsmith.co.uk and www.carlton.com.

*  Carlton will promote the WHSmith retailing service on Carlton.com
and through all its media assets, including its three ITV regions
(London, Central and West Country) and cinema advertising business.

*  WHSmith will handle Carlton's online e-commerce offer and
fulfilment.

*  Carlton will sell advertising across the two companies websites and
provide online content.

*  WHSmith will promote Carlton.com through its web sites and in its
700 stores nationwide to its eight million weekly customers.

*  Carlton and WHSmith will share fully the risks and rewards
associated with the joint venture.

WHSmith Online will sell its full range of books, CDs, videos and DVDs
via Carlton.com and related sites, while Carlton will use its
television, cinema screen and internet channels to provide advertising
worth £15m for the joint online retail venture.

Carlton has market leading sites covering films (www.popcorn.co.uk),
food (www.simplyfood.co.uk) and games (www.jamba.co.uk), which between
them have won two Yell UK web awards and a BAFTA Interactive
Entertainment Award.  Carlton is expanding www.carlton.com into an
entertainment portal, building on its existing online entertainment
business and integrating online shopping.  Carlton also owns 25 per
cent of Ask Jeeves UK (www.ask.co.uk), the intelligent question and
answer service.

Carlton owns 34 per cent of ITV, Britain's most popular TV channel,
and broadcasts to 22 million people across its London, Midlands and
West Country regions.  ONdigital, 50 per cent owned by Carlton, plans
to launch interactive television services and internet access for its
growing base of 550,000 subscribers.

WHSmith is Britain's leading retailer of books, magazines and home
stationery with more than 700 shops across the country and eight
million customers in store per week.  Since the launch of WHSmith
Online (www.whsmith.co.uk) in April 1999,  WHSmith has become one of
the UK's leading online retailers and internet service providers.   It
is currently the only UK bookseller that allows customers to shop via
the Internet, digital TV, on the high street and later this month, via
mobile technology.

For further information:

WHSmith PLC
Tim Blythe, Sian Wood
020 7409 3222

Carlton Communications Plc
David Cameron
020 7663 6363