SMITH & NEPHEW BUYS MAJOR ORTHOPEDICS BUSINESS

SMITH & NEPHEWPLC, GLOBAL MEDICAL TECHNOLOGY BUSINESS, announces that it has agreed to the purchase of Plus Orthopaedics Holding AG ("Plus"), a private Swiss orthopedic company, for a total of $889 million in cash, including assumed debt.

This increases Smith & Nephew's share of the global orthopedic reconstruction market to around 12%, taking Smith & Nephew to global number 4, and doubles Smith & Nephew's share of the European orthopedic reconstruction market. It also brings a highly complementary product range, and is highly synergistic, bringing good opportunities to leverage the combined sales force in Europe and Asia, and cost opportunities from increased manufacturing leverage and capacity utilization as well as better use of the combined marketing and sales infrastructure.

Plus was founded in 1991 and has its origins in European designed cementless hip systems. Plus has worked closely with European surgeons to design and develop a wide product range of orthopedic implants, primarily hips and knees, and also small joint and shoulder products. The product range is complementary to Smith & Nephew's, and includes threaded acetabular cups and revision products for hips; and hinged, fixed and mobile bearing designs for knees. Plus has manufacturing facilities in Switzerland and China.