Business to Business Joint Venture with Axon Group

Smith WH PLC
2 March 2000


WHSmith and Axon launch business to business trading portal

WHSmith PLC today announced a joint venture with Axon Group plc that
will offer a business to business trading portal for retailers. The
venture will potentially bring eCommerce to 45,000 retail outlets.

The venture will allow WHSmith, the leading distributor of newspapers
and magazines in the UK, to create a new level of relationship with
the retail network it services.  It will provide crucial trading and
information links with the retailer and increase the efficiency of the
supply chain for both retailer and distributor.

The new venture will initially target 8,000 retail outlets of the
16,000 currently supplied by WHSmith.  It ultimately seeks to increase
that level significantly amongst the 45,000 UK outlets in the £6bn
independent confectionery, tobacco and newsagent market.  Future
funding for the expansion of the venture may involve a separate
listing.

Phase one of the portal development has been running live since last
year amongst a group of retailers in the Midlands, ranging from small
independent newsagents to a leading supermarket chain.  Results have
exceeded expectations with over 70 per cent of transactions performed
on-line rather than by telephone.

The portal will also facilitate the distribution of a wider range of
goods to newsagents.  The joint venture company intends to make the
portal available to other suppliers who wish to benefit from the
direct access to retailers.

Commenting, Richard Handover, Chief Executive of WHSmith, said:  'Our
internet strategy has been centered around leveraging our existing
bricks and mortar businesses by integrating and enhancing them with
the internet.

'We made it clear in October last year that we saw the application of
internet technologies via a business to business environment as a real
opportunity for WHSmith.  This joint venture with Axon demonstrates
our belief in this and provides the opportunity for us to create real
revenue streams and capital value.'

Mark Hunter, Axon CEO commented: 'Welcome to the world of eCommerce
for grown-ups.  This is not a dot com fantasising about the future.
It is an attractive proposition that will make life better for
newsagents, generate real revenues and establish a footprint for
further exploitation of the model.'


Enquiries:

Sian Wood, Andy Finch, Paul Bowtell
WHSmith PLC
0171 409 3222

Harry Hunt, Michael Henman for Axon Group plc
Grandfield
0171 417 4170

Notes to Editors

WHSmith's distribution business, WHSmith News, is the leading
distributor of newspapers and magazines within the UK.

Axon is a leading eBusiness technology company.