Healthcare Industry News:  Smith & Nephew Endoscopy 

Devices Orthopaedic Litigation

 News Release - August 23, 2007

Smith & Nephew Sues Arthrex, Inc. for Patent Infringement

ANDOVER, Mass., Aug. 23 (HSMN NewsFeed) -- Smith & Nephew, Inc., Endoscopy Division, a subsidiary of Smith & Nephew plc (NYSE: SNN ; London Stock Exchange: SN), today announced that the company has filed a patent infringement lawsuit in US District Court for the Eastern District of Texas against privately-held Arthrex, Inc., (Naples, Fla.).

Smith & Nephew Endoscopy claims that Arthrex's Retrobutton infringes US Patents 5,645,588 and 5,306,301 owned by the company. The patents asserted in the claim cover Smith & Nephew's ENDOBUTTON(TM) fixation device and similar devices and methods for attaching tissue grafts to bone during arthroscopic surgery in the knee.

"Smith & Nephew has a long and proud history of providing medical devices that help surgeons to deliver positive patient outcomes," commented Joe Darling, senior vice president and general manager, Arthroscopic Repair, Smith & Nephew Endoscopy. "As a result, we will continuously and vigorously protect our intellectual property rights around the world."

About Smith & Nephew:

Smith & Nephew is a global medical technology business, specializing in Orthopaedic Reconstruction, Orthopaedic 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 has 9,600 employees and operates in 31 countries around the world. Annual sales in 2006 were nearly $2.8 billion.

This press release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In particular, statements regarding planned growth in our business and in our trading margins discussed under "Outlook" are forward-looking statements as are discussions of our product pipeline. These statements, as well as the phrases "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions, are generally intended to identify forward-looking statements. Such forward- looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew's most recent annual report on Form 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof. All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing. Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

(TM) Trademark of Smith & Nephew. Certain Marks Reg. U.S. Pat. & T.M. Off

Source: Smith & Nephew

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