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Suzhou, China, June 5, 2009 – Smith & Nephew plc (LSE: SN, NYSE: SNN), a leading global medical technology business, is pleased to announce the inauguration of its Advanced Wound Management manufacturing facility today in China-Singapore Suzhou Industrial Park (SIP), Suzhou, China.

With a total investment of US$60 million, Smith & Nephew Medical (Suzhou) is the first manufacturing facility built and operated by the Company in China since its entry into the Chinese market in 1994. This is the largest investment for Smith & Nephew in China so far and the new site reflects the importance the Company places on continuing to build its presence in China.

The facility will manufacture ALLEVYN^◊ ADHESIVE dressings, as well as other products for the Smith & Nephew Advanced Wound Management business. ALLEVYN ADHESIVE dressings are used globally to treat conditions such as geriatric and diabetic ulcers. Products manufactured at the facility will be exported to 65 countries worldwide. The plant is built to the highest international standards and specifications, and will employ the same advanced manufacturing processes used by Smith & Nephew globally. The plant is designed to accommodate greater manufacturing volumes or a broader range of products as demand increases in the future. The plant has been making test batches of production for some weeks and this process will continue for a few months before full scale production is started towards the end of the year. Once full scale production is achieved, its sister factory in Largo, Florida, US, will close as planned.

Roger Teasdale, President of its Advanced Wound Management business and Jeff Adams, Senior Vice President of Global Operations, participated in the inauguration ceremony.

Jeff Adams commented: “Smith & Nephew is proud to open this high specification facility and bring our best-in-class manufacturing process to China. There is an increased global demand for our Advanced Wound Management dressings and we are confident that our China business will play a significant role in meeting our patients and surgeons’ needs globally.”

Roger Teasdale added: “We understand that with China’s healthcare reform, there will be increasing demand for quality services in the sector. Smith & Nephew is well positioned to support China’s healthcare reform through providing high quality services and products. We are also actively engaging with education initiatives for healthcare providers in China and the recently launched Education Institute is a vivid example of our efforts in this area. We will continue to explore development opportunities in China.”

Senior government officials and business leaders from the Suzhou Industrial Park also participated in the opening ceremony. Suzhou Industrial Park, one of the fastest developing industrial zones in China with more than 3,000 foreign companies present, has attracted the investments of numerous world leading pharmaceutical companies into the area.

Investors and analysts
Smith & Nephew
Liz Hewitt   +44 (0)20 7401 7646
Group Director of Corporate Affairs

Media
Brunswick Group  Jinqing Caroline CAI  +86 10 6566 2256  jcai@brunswickgroup.com
 ZHAO Xiaolu  +86 10 6566 4381  xzhao@brunswickgroup.com

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

Smith & Nephew is a global medical technology business, specialising in Orthopaedics, including Reconstruction, 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 operates in 32 countries around the world. Annual sales in 2008 were $3.8 billion.

Smith & Nephew Medical opens on June 5, 2009. Located in the China-Singapore Suzhou Industrial Park, one of China’s best industrial parks, the facility manufactures ALLEVYN^◊ ADHESIVE dressings, which treat conditions such as geriatric and diabetic ulcers, as well as other products for the Company’s Advanced Wound Management Business. With an initial investment of US$60 million, the plant is built to the highest standards and specifications, demonstrating Smith & Nephew’s best in class manufacturing process.

Smith & Nephew Education Institute opened on June 3, 2009 in Shanghai. The institute serves as a knowledge sharing platform for Chinese & overseas surgeons to improve procedural knowledge, skill sets and to learn advanced technologies in joint replacements & trauma surgeries in China. Smith & Nephew aims to provide training for more than 3500 healthcare providers by 2011 and four additional institutes will be set up to meet the demand.