Re Agreement

Smith (DS) PLC
7 November 2001


7 November 2001


DS Smith establishes joint venture liquid packaging operation


DS Smith Plc has formed a joint venture with AEP Industries Inc, acquiring a
50% stake in AEP's bag-in-box liquid packaging operations.  AEP's bag-in-box
operations comprise its Liquipac business in New Zealand and the Liquid Bag
Systems (LBS) business based in Australia and New Zealand, recently acquired
from Visypak Operations Pty Limited. Total consideration is £6.3 million, paid
in cash.

This acquisition extends DS Smith's capability to provide liquid packaging
solutions to markets in Australia, New Zealand and the Far East and enhances
its ability to service multi-national customers.  DS Smith is currently a
licensee of LBS and, as part of the acquisition, secures further licences on
new technology developed by LBS. The joint venture will be managed through DS
Smith's existing liquid packaging business, Rapak, which has plants in Europe
and North America.


Enquiries:


Paul Froud
DS Smith Plc
[phone]