UK Court of Appeal Publishes Decision in NPWT Case

Smith and Nephew Remains Committed to NPWT Market; will Continue to Serve Patients in United Kingdom

HULL, England, November 18, 2010 - The English Court of Appeal has published a decision in the long-running
dispute between KCI and Smith & Nephew relating to Negative Pressure Wound
Therapy (NPWT). The full implications of the decision will be finalized in
the upcoming weeks.

The Court of Appeal has found that Smith & Nephew has not infringed any
valid claim of KCI's patent EP 0777504 for wound drainage equipment. Earlier
in the proceedings, KCI abandoned the main claim of EP 0853950 for wound
drainage canisters. The Court found that one of the sub-claims of that
patent, covering the use of canisters in combination with reticulated foam
dressings, is both valid and infringed. A sub-claim that could have covered
the Smith & Nephew RENASYS canisters when used with gauze dressings was found
to be invalid. Use of RENASYS G will not infringe either patent.

The Court has yet to rule on how this decision impacts the market. Smith
& Nephew will seek to minimise the impact of the Court's decision on
customers and patients who use the RENASYS system.

This latest decision relates to the UK market only. Smith & Nephew has
achieved encouraging results in German court proceedings relating to the
equivalent patents.

For more information about Smith & Nephew, please visit
www.smith-nephew.com.

    Inquiries

    Investors            +44(0)20-7401-7646
    Liz Hewitt
    Phil Cowdy
    Smith & Nephew

    Press                +44-20-7404-5959
    Justine McIlroy
    Brunswick Group

    Other inquiries      +1-727-399-3766
    Robin Carlstein
    Senior Vice President
    Smith & Nephew Advanced Wound Devices

About Smith & Nephew

Smith & Nephew is a global medical technology business with global
leadership positions in Orthopaedics; including Reconstruction, Trauma and
Clinical Therapies; Sports Medicine; and Advanced Wound Management.

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 2009 were nearly $3.8 billion.

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Investors, Liz Hewitt or Phil Cowdy of Smith & Nephew, +44(0)20-7401-7646, or Press, Justine McIlroy of Brunswick Group, +44-20-7404-5959, Other inquiries, Robin Carlstein, Senior Vice President of Smith & Nephew Advanced Wound Devices, +1-727-399-3766