Re Contract

Smiths Group PLC
13 March 2002



$1 billion opportunity as Boeing selects Smiths Aerospace for 767 tanker




The Boeing Company has selected Smiths Aerospace to supply the hose and drogue
refuelling system for the B767 Global Tanker Transport Aircraft (GTTA).   The
GTTA is competing for a global market of over 500 tanker aircraft to be built
over the next 30 years.  This selection provides the opportunity for Smiths
Aerospace to generate well over $1 billion in sales of refuelling hardware and
associated in-service support.

Development of the systems will commence immediately with initial deliveries on
aircraft scheduled for delivery to Italy and Japan from 2005.  Boeing is
currently in negotiations with the United States Air Force for the lease of 100
aircraft and is part of a consortium bidding to provide the Future Strategic
Tanker Aircraft for the UK Ministry of Defence.

Expressing his pleasure at the Boeing selection, Keith Butler-Wheelhouse, Chief
Executive of Smiths Group, said: 'The combination of TI's aerostructures
capability and Smiths' resources have produced precisely the type of new
business opportunity we envisaged from the merger.'



Key to this success was the integrated system offered by Smiths Aerospace. The
technology for the hose unit, the major part of the system, has been acquired
through the agreement for Smiths to purchase Able Corporation.  Smiths has
agreed a price of $17.5m in cash for Able plus up to $10m deferred over 5 years.

In addition to its microprocessor-based refuelling hose systems, Able makes
pumps, electric motors and fluid control products for aircraft and military land
vehicles.  It has annual sales of
$12 million which will grow considerably as a result of the 767 tanker
programme.  Able has 65 employees and is based near Los Angeles, California.


'We are proud to support Boeing on this important and valuable programme,'
commented John Ferrie, Group Managing Director.  'This selection is indicative
of the value customers place on the integrated engineering capabilities we
provide.  Our acquisition of Able further strengthens our existing fuels
business.'


Smiths Aerospace has extensive experience in both military and commercial fuel
systems and structural components. The programme combines a breadth of
capabilities of Smiths Aerospace in programme management and systems/software
engineering from its Michigan facility, manufacturing from Florida, extensive
structural component engineering and manufacturing from its aero structures
business in Southampton, and primary hose and drogue in-flight refuelling
components from Able in California.

The Smiths Aerospace hydraulically powered hose and drogue refuelling system
contains the latest technology which provides significantly improved response
performance.  In addition, the system incorporates numerous features that
substantially enhance system reliability and maintainability.


This latest selection reinforces Smiths Aerospace's position as a preferred
supplier to Boeing. Smiths Aerospace was previously selected for the 767 GTTA
mission control system using a derivative of the company's advanced commercial
flight management system in service on Boeing 737 aircraft.  The in-air
refuelling system interfaces with the mission control system to provide Boeing's
customers with an integrated solution to accomplish the aircraft's primary
mission. Late last year, US Congress granted the Air Force the authority to
negotiate a lease for up to 100 767 Tankers as the first step in replacing its
Eisenhower-era KC-135 fleet.  Negotiations are expected to be completed this
summer.


Smiths Aerospace is the leading transatlantic aerospace equipment company, with
half its 12,000 staff and $2 billion revenues in North America. Smiths
Aerospace, a part of Smiths Group plc, holds key positions in the supply chains
of all major military and civil aircraft and engine manufacturers and is a
world-leader in electronic systems, actuation systems, precision components and
detection & protection systems.



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