Re Acquisition

Smith (DS) PLC
20 May 2004


DS Smith Plc
                                                                     20 May 2004


DS Smith's Acquisition of LINPAC Containers to be Considered by the Competition
Commission


DS Smith, the international packaging manufacturer and office products
wholesaler, notes today's announcement by the Office of Fair Trading (OFT) that
the acquisition of LINPAC Containers Limited is to be referred to the UK
Competition Commission for further inquiry.  The OFT identified concerns that
the transaction 'may reduce competition in the supply of corrugated cardboard
sheet to the merchant sector'.  DS Smith acquired LINPAC Containers Group on 22
March 2004 for £170 million.

The Board of DS Smith is disappointed that this transaction has been referred to
the Competition Commission and believes that the acquisition will not result in
a substantial lessening of competition.  DS Smith will work closely with the
Competition Commission during its inquiry to seek to satisfy them of this.

The Commission is expected to report its findings by 3 November 2004.

During the period of inquiry there will be restrictions on the actions that DS
Smith may take to integrate LINPAC Containers' operations with those of DS
Smith.  This will not affect either company's ability to serve its customers and
generate its underlying business result but it is now unlikely that in the
timescale originally envisaged, the synergies will be captured, or the estimated
integration costs incurred.


Enquiries

DS Smith Plc                                                       020 7932 5000
Tony Thorne, Group Chief Executive
Gavin Morris, Group Finance Director
Peter Aubusson, Group Communications Manager

Financial Dynamics                                                 020 7269 7291
Richard Mountain/Robert Gurner



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