Federal Court of Australia upholds Smith & Nephew's appeal

MELBOURNE, Australia- Oct. 10, 2009- Court overturns previous interlocutory injunction against Smith & Nephew's foam dressing kits in Australia

Smith & Nephew Inc.'s Advanced Wound Management division (LSE: SN; NYSE: SNN) announced that the Federal Court of Australia has ruled in its favour and set aside KCI Medical Australia's (KCIMA) interlocutory injunction restraining Smith & Nephew from commercialising in Australia foam dressing kits for use in negative pressure wound therapy (NPWT). KCIMA has until 4 pm on Monday 12 October 2009 to seek a stay of the order setting aside the injunction while they seek to appeal the decision.

"We are very pleased with the outcome of the appeal and remain committed to providing a strong and diverse product portfolio, with which the clinician can exercise her or his own best judgment when tailoring NPWT for each patient," said Leon Hoare, President, Asia Pacific, Smith & Nephew Advanced Wound Management. "This is an important milestone for Smith & Nephew and follows a finding in the UK Court of Appeal that a corresponding UK patent is invalid."

KCIMA's claim against Smith & Nephew for patent infringement is vigorously contested by Smith & Nephew. Smith & Nephew is confident it will succeed at final trial at which it will argue that the patent is not valid under Australian law.

The RENASYS* NPWT product line includes the RENASYS GO and RENASYS EZ, as well as the RENASYS-G and RENASYS-F dressing kits. The RENASYS product line offers unmatched flexibility to support clinical judgment based on the unique needs of each wound, patient and care setting.

For more information regarding Smith & Nephew, please visit our Web site at www.smith-nephew.com.

Inquiries

Investors

Liz Hewitt

+44 (0)20 7401 7646

Group Director Corporate Affairs

Smith & Nephew

Press

Katie Cralle

+1 212 333 3810

Brunswick Group

Other Inquiries

Leon Hoare

+61 3 8540 6777

Smith & Nephew Healthcare

Advanced Wound Management

About Smith & Nephew

Smith & Nephew is a global medical technology business, specializing in Orthopeadics, including Reconstruction, Trauma and Clinical Therapies, Endoscopy and Advanced Wound Management. Smith & Nephew is a global leader in arthroscopy and advanced wound management and is one of the leading global orthopeadics 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 nearly $3.8 billion.

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