Advanced Hyaluronic Acid Therapy Made Available to all European Patients Recovering From Arthroscopic Joint Surgery

DUROLANE(R) Granted Major EU License Extension for the Treatment of Human Joints

YORK, England, November 30, 2010 - European patients who have undergone arthroscopic joint
surgery and experience post-operative pain can, from today, benefit from a
unique injectable treatment which supplements or replaces the body's natural
hyaluronic acid, the substance which lubricates and cushions joints.

Smith & Nephew's DUROLANE(R) has been given the rights to bear
the CE mark for expanded indications and is now available for use in patients
undergoing arthroscopic joint surgery in the presence of osteoarthritis or
following general arthroscopic surgical repair of the joint. The new license
permits DUROLANE to be used at any point up to three months after an
arthroscopic procedure. Previously, the treatment was only available to
patients being treated for mild to moderate hip or knee osteoarthritis (OA).
The license extension also permits the use of the product in OA patients
experiencing pain in all sizes of synovial joints, such as fingers, ankles
and knees.

"Patients can experience severe and debilitating pain for many
reasons following arthroscopic procedures, which, historically, have been
managed to varying degrees of success with local anaesthetics and other
treatments," said Mr Richard Villar, consultant orthopaedic surgeon and
co-founder of the International Society for Hip Arthroscopy.

"Today's recognition that hyaluronic acid replacement has a
significant role to play in managing post-arthroscopic pain, as well as its
wide use in the treatment of osteoarthritis is welcome news for patients who
are keen to get back to a normal lifestyle following such a procedure," he
added.

DUROLANE, which is administered as a single injection, was
developed by Q-Med AB in Sweden and is marketed by Smith & Nephew, uses a
unique, safe and effective technology called NASHA(TM) to stabilise the
hyaluronic acid. It is injected directly into joints to restore lubrication
and cushioning, helping the patient regain joint function and reduce the pain
commonly associated with post-operative recovery. DUROLANE is treated by the
body in a similar way as its own hyaluronic acid, and is associated with a
long history of safe use, marketed within the European Union since 2001.

The unique NASHA technology enables DUROLANE to resist
breakdown in the body, giving a long-lasting effect in a single injection. In
contrast, some formulations of hyaluronic acid require compared multiple
injections.

"At Smith & Nephew, our focus is to help improve people's
lives by repairing and healing the human body, which is why we invested in
bringing this product to wider applications," said John Everett, VP of
International Commercial Operations, Smith & Nephew.

"DUROLANE already was shown to be safe and effective in the
treatment of knee and hip osteoarthritis, and this license extension is a
significant development in the treatment options for healthcare professionals
to help their patients regain their lives," he added.

Notes to Editors:

About DUROLANE(R)

DUROLANE is a single injection treatment which, prior to the
EU licence extension, was indicated to relieve the pain of knee or hip
osteoarthritis.

DUROLANE is transparent gel which contains high levels of
Hyaluronic acid (HA), a naturally occurring molecule that provides the
lubrication and cushioning in a normal joint. It is injected into joints
affected by osteoarthritis to relieve pain, restore lubrication and
cushioning which improves joint function and helps to restore quality of
life, using patented NASHA technology. Further information can be found at:
www.q-med.com and www.durolane.com.

About Smith & Nephew

Smith & Nephew is a global medical technology business with
global leadership positions in Orthopaedics; including Reconstruction, Trauma
and Clinical Therapies; Endoscopy; including Sports Medicine; and Advanced
Wound Management. 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 distribution channels, purchasing agents and buying entities in
over 90 countries worldwide. Annual sales in 2009 were nearly $3.8 billion.

References

1. Drosos, G.I et al, Post-Operative Pain After Knee Arthroscopy and
Related Factors, Open Orthop. J, 2008; 2; 110-114

    Inquiries:
    Con Franklin, Red Door Communications
    Tel: +44(0)208-392-8061
    CFranklin@rdcomms.com

Inquiries: Con Franklin, Red Door Communications, Tel: +44(0)208-392-8061 / +44(0)7889-723-721, CFranklin at rdcomms.com