Acquisition

Smith & Nephew Plc
12 March 2004

12 March 2004



SMITH & NEPHEW TO ACQUIRE LEADING HIP RESURFACING BUSINESS



London and Birmingham, England, March 12, 2004 - Smith & Nephew (LSE:SN, NYSE:
SNN) and Midland Medical Technologies (MMT) today announced an agreement for
Smith & Nephew to acquire MMT, the global leader in metal-on-metal hip
resurfacing.



Smith & Nephew has agreed to pay £67m in cash and loan notes for MMT, with
additional payments of up to £33m in cash and loan notes based upon certain
regulatory milestones being met.  MMT, based in Birmingham, England, achieved
sales of £20 million in 2003.



MMT's principal product is the BHR (Birmingham Hip Resurfacing), a hip procedure
pioneered by UK orthopaedic surgeons, Mr. Derek McMinn and Mr. Ronan Treacy.
Hip resurfacing, where the articular surfaces of the femur and acetabulum are
replaced, leaving the femoral head substantially preserved, is a less invasive
bone sparing approach to treating arthritis in younger or more active patients.
Mr. McMinn and Mr. Treacy will remain actively involved with Smith & Nephew to
further develop and train the medical community on the BHR procedure. MMT will
be integrated into Smith & Nephew's global Orthopaedics Reconstruction business
based in Memphis, Tennessee.  Agreement has also been reached with Finsbury
Instruments Limited, the manufacturer of the BHR, for the continued supply of
the product.



The BHR procedure has been used in over 27,000 patients since 1997 and has
significant clinical experience, particularly in the UK, Germany and Australia.
Smith & Nephew intends to pursue Food and Drug Administration approval of the
product in the United States.



Sir Christopher O'Donnell, Chief Executive of Smith & Nephew, commented: 'This
is an excellent technology acquisition which brings to Smith & Nephew the
world's leading hip re-surfacing company and the most clinically proven product
in a fast expanding area.  Demand for less invasive and less traumatic surgery
is increasing, particularly in younger or more active patients.  The acquisition
of MMT will expand an already industry-leading range of reconstructive implant
technologies within our Orthopaedics business.'



John Hatton, Managing Director of MMT, said: 'This was the right time in the
evolution of MMT to seek out a strategic partner to bring metal-on-metal hip
resurfacing devices to the broader orthopaedic patient community.  We look
forward to working with Smith & Nephew to drive adoption of this truly
bone-preserving surgery worldwide.'



David Illingworth, President of the Orthopaedics business of Smith & Nephew,
added: 'With our existing OXINIUM technology, our pending US application for
ceramic-on-ceramic, and the acquisition of the BHR metal-on-metal offering, we
are confident that Smith & Nephew will possess the broadest and most
comprehensive offering of bearing surfaces in the industry.  We look forward to
welcoming MMT employees into Smith & Nephew and to offering this innovative
technology to our customers.'



About Us



Smith & Nephew (LSE:SN, NYSE:SNN) is one of the world's leading medical devices
companies, specialising in Orthopaedics, Endoscopy and Advanced Wound
Management.  Smith & Nephew ranks as the global leader in arthroscopy and
advanced wound management and is the fastest growing full-line orthopaedics
company in the world.



Smith & Nephew is dedicated to helping improve people's lives.  The company
prides itself on the strength of its relationships with its surgeon and
healthcare professional customers, with whom its name is synonymous with the
highest standards of performance, innovation and trust.  The company has more
than 7,000 employees and operates in 32 countries around the world, generating
sales of over £1.2 billion.



Enquiries:


Smith & Nephew Investors
Peter Hooley                                   Tel: [phone]
Finance Director

Smith & Nephew Investors/National Media
Angie Craig                                    Tel: [phone]
Corporate Affairs Director                     Tel: [phone]

Smith & Nephew Orthopaedics/Trade media
Andrew Burns                                   Tel: [phone]

Financial Dynamics - London
David Yates                                    Tel: [phone]

Financial Dynamics - New York
Jonathan Birt                                  Tel:[phone]

MMT
John Hatton                                    Tel: [phone]




Smith & Nephew will host a short conference call for the media at 2.45pm GMT/
9.45 EST/6.45 PST.  Please call Mo Noonan at Financial Dynamics in London on +44
(0)20 7269 7116 or Jonathan Birt at Financial Dynamics in New York on +1 212 850
5634 for details of the press call.  A call for investors and analysts has been
scheduled for 4pm GMT/11am EST/8am PST.  For investors and analysts wishing to
participate in the conference call please call Zehra Sinmaz at Smith & Nephew on
[phone].  This call can be heard live on the Smith & Nephew website
at www.smith-nephew.com.



This press release contains forward-looking statements.  The company wishes to
caution the reader that actual results may differ from those discussed in the
forward-looking statements and may be adversely affected by, among other things,
risks associated with new product development and commercialization, clinical
trials, intellectual property, regulatory approvals, competitive offerings, the
company's overall business strategy and other factors.




                      This information is provided by RNS
            The company news service from the London Stock Exchange