Nucryst Agreement Restructure

Smith & Nephew Plc
01 October 2007


FOR IMMEDIATE RELEASE


Smith & Nephew restructures agreement with manufacturer of ACTICOAT*
nanocrystalline silver antimicrobial dressing range


HULL, UK October 1 2007 - The Advanced Wound Management division of Smith &
Nephew plc (LSE: SN; NYSE:SNN) announced today that it has restructured its
agreement with Nucryst Pharmaceuticals Corp, ('Nucryst') the manufacturer of its
ACTICOAT* nanocrystalline silver antimicrobial dressing range.

The new agreement gives Smith & Nephew improved commercial terms which include
allowing the introduction by Smith & Nephew of new forms of silver dressings
together with priority rights for new nanocrystalline silver technology
developed by Nucryst as well as continued exclusive rights for the ACTICOAT
range,.

The financial terms of the agreement include the early payment of a $5m
milestone payment to Nucryst by Smith & Nephew as part of a package of amended
financial terms.

Joe Woody, President of the Advanced Wound Management division said 'Our work
within the group-wide Earnings Improvement Programme, announced earlier this
year, includes a review of our product portfolio, including ACTICOAT.  This
agreement enables Smith & Nephew to introduce new forms of silver products which
meet the increasingly diverse needs of patients and improve the quality of their
lives.  The enhanced financial terms we have agreed will allow Smith & Nephew to
increase its investment in the silver dressings market and to expand its market
presence'.

               
Contact:       Sidonie Myers
               Head of Communication
               Smith & Nephew Advanced Wound Management
               [phone]
               [e-mail]


Notes for Editors

About Us


Smith & Nephew Advanced Wound Management, with headquarters in the United
Kingdom, employs more than 3,100 people around the world.  The organisation has
manufacturing centres in the United Kingdom and Largo, FL.

Smith & Nephew is a global medical technology business, specialising in
Orthopaedic Reconstruction, Orthopaedic Trauma and Clinical Therapies, Endoscopy
and Advanced Wound Management products.  Smith & Nephew is a global leader in
arthroscopy and advanced wound management and is one of the leading global
orthopaedics companies.

Smith & Nephew is dedicated to helping improve people's lives.  The Company
prides itself on the strength of its relationships with its surgeons and
professional healthcare customers, with whom its name is synonymous with high
standards of performance, innovation and trust.  The Company has 9,600 employees
and operates in 31 countries around the world generating annual sales
approaching $2.8 billion.


Forward-Looking Statements

This press release contains certain 'forward-looking statements' within the
meaning of the US Private

Securities Litigation Reform Act of 1995. In particular, statements regarding
expected revenue growth and trading margins discussed under 'Outlook' are
forward-looking statements as are discussions of our product pipeline. These
statements, as well as the phrases 'aim', 'plan', 'intend', 'anticipate',
'well-placed', 'believe', 'estimate', 'expect', 'target', 'consider' and similar
expressions, are generally intended to identify forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors (including, but not limited to, the outcome of
litigation, claims and regulatory approvals) that could cause the actual
results, performance or achievements of Smith & Nephew, or industry results, to
differ materially from any future results, performance or achievements expressed
or implied by such forward-looking statements. Please refer to the documents
that Smith & Nephew has filed with the U.S. Securities and Exchange Commission
under the U.S. Securities Exchange Act of 1934, as amended, including Smith &
Nephew's most recent annual report on Form 20F, for a discussion of certain of
these factors.


All forward-looking statements in this press release are based on information
available to Smith & Nephew as of the date hereof. All written or oral
forward-looking statements attributable to Smith & Nephew or any person acting
on behalf of Smith & Nephew are expressly qualified in their entirety by the
foregoing. Smith & Nephew does not undertake any obligation to update or revise
any forward-looking statement contained herein to reflect any change in Smith &
Nephew's expectation with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.

* Trademark of Smith & Nephew. Certain marks registered US Patent and Trademark
Office.


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