Proposed Disposal

Smith WH PLC
5 July 2001


Not for release, publication or distribution in or into the United States,
Canada, Japan or Australia

WH Smith PLC

Agreement in principle with ABN AMRO Private Equity
for proposed sale of News Distribution for £215 million

WH  Smith PLC ('WHSmith') today announces that it has agreed, in principle, to
sell the News Distribution business, including Connect2U (together 'News'), to
ABN  AMRO  Private Equity (UK) Limited ('ABN AMRO Private Equity'),  for  £215
million  in  cash.   The  agreement is subject  to  ABN  AMRO  Private  Equity
finalising   due  diligence  and  the  negotiation  of  mutually  satisfactory
contractual  arrangements between the parties and between News and  its  major
customers and suppliers.

Due  to  the size of the transaction, the sale and purchase agreement relating
to  News  will be conditional on the approval of the shareholders of  WHSmith.
Following  the signing of that agreement, WHSmith will despatch a circular  to
shareholders  to  convene  an  extraordinary general  meeting  to  seek  their
approval.

Enquiries:                                          

WH Smith PLC                                        
Richard Manhire, Investor Relations                 020 7514 9686
Louise Evans, Media Relations                       020 7514 9624
Greenhill & Co.                                     
James Lupton                                        020 7440 0400
Brunswick                                           
Philippa Power                                      020 7404 5959

Notes to Editors

WHSmith News

WHSmith News is the UK's largest wholesaler of newspapers and magazines, with
33% and 36% market shares respectively. In the year to August 2000, it
generated sales of £1,047 million and employs some 4,500 employees.

WHSmith  News  has a distribution network of 51 warehouses throughout  England
and  Wales.   It  receives bulk newspapers and magazines from  publishers  and
distributors on a daily basis and then re-packs and distributes them to over
23,000  customers, ranging from multiples to independent  retailers. In
addition, WHSmith News provides a number of value-added services  including
category management, information provision and merchandising.

Connect2U

Connect2U is a web based communication and customer service platform linking
UK retailers, wholesalers, manufacturers and publishers. Connect2U simplifies
the supply chain, improves the administration of ordering, reduces the costs
of marketing and promotions whilst giving retailers greater control of their
newspaper and magazine supplies online.  Originally established through a
joint venture partnership with Axon Group, Connect2U is a wholly owned
subsidiary of WHSmith.