Smiths selected by Boeing for 767 tanker refuelling system

Dividend maintained at 8.75p

More confidence in outlook for second half

Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said:

"This was an exceptionally tough six months for many companies. Against challenging circumstances, our 13% first-half margins and 80% profit-to-cash conversion show the resilience of Smiths Group. Meanwhile, we have been focusing on disposals and restructuring so that we can return to growth as the economic cycle starts to recover. Our defence business is already growing strongly and recent acquisitions will help Medical make a bigger contribution. We are now more confident about the outlook for the second half of the year."

Further information:

Russell Plumley

+44 (0) 20 8457 8203

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Reported on a fully consolidated basis, including discontinued activities and after exceptionals and amortisation, Smiths Group recorded pre-tax profit of £123 million (2001: £97m) and earnings per share of 14.0p (7.7p) in the first half of the current year, with the prior period bearing one-off merger-related costs. The remainder of this statement focuses on the continuing activities.