Trading Statement - 19 weeks to 8 January 2000

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


TRADING STATEMENT

Sales for the Company's retailing activities for the 19 weeks to 8
January 2000 were up 2.5 per cent (with selling space up 1 per cent).
Sales during the 6 weeks to 8 January 2000 were up 3 per cent.

Against a highly competitive trading season, sales and margin
performance in the core categories of books, stationery and magazines
was good. Over the 19 weeks to 8 January, sales in the key book
category grew by 7 per cent. There was also a strong performance in
computer and telephone peripherals.

Sales and margins in the generally depressed entertainment market
(music, video and computer games) were weak. As a result of
performance in this sector, margin progress and mix gains in other
categories were offset by entertainment and overall margin was 0.2
percentage points down on the prior year period. Since approximately
55 per cent of entertainment sales are concentrated in the first 19
weeks of the year, the overall margin performance for the rest of the
year is expected to be up on the equivalent period in 1998/9.

WHSmith Direct grew year to date Internet orders by 85 per cent and
sales by 55 per cent.  Sales in the month of December grew by 80 per
cent.

WHSmith News Distribution has grown year to date sales by 3 per cent.

The Hodder Headline publishing business, acquired in May 1999, has
grown sales by 12 per cent, which represents 8 per cent underlying
growth, excluding the acquisition of Wayland educational publishing.

Commenting on the sales performance, Richard Handover, Chief Executive
said:

'I am particularly pleased with our performance in the core area of
books, magazines and stationery. This was a tough Christmas trading
period and we have performed well in difficult conditions. The
entertainment market was under considerable pressure and we have a lot
of scope to improve our performance in that market.  We are doing very
well in books, where we are continuing to grow share. The own brand
computer peripherals market is also becoming a great opportunity for
us.

'We are also growing our Internet transaction volumes as we build that
business for the future.

'The results from Hodder Headline reflect the strength of this
business and we are very pleased with the acquisition.

'I am happy that we are on course to achieve our targets.'

WH Smith will hold its AGM today (11.30am at The Brewery, Chiswell
Street).  It is intended to announce the interim results for the six
months to 28 February on 18 April 2000.

Enquiries:                                        0171 514 9623

Richard Handover    -    Chief Executive
Keith Hamill        -    Finance Director
Tim Blythe          -    Corporate Affairs Director