GYG Gyg Plc

RNS Number:1327D
Smith & Nephew Plc
4 May 2001

4 May 2001



             SMITH & NEPHEW SELLS ENT TO GYRUS GROUP PLC FOR #65M



Smith & Nephew, the global advanced medical devices company, has reached
agreement to sell its Ear, Nose & Throat (ENT) business to Gyrus Group plc, a
company that designs, develops and markets medical devices for minimally
invasive surgery, for a cash consideration of #65m.  Completion is subject to
approval of the shareholders of Gyrus Group plc and regulatory and other
normal clearances.  The sale of ENT is expected to be completed in early June
2001, at which time #52.5m of the consideration is payable; the balance being
payable in January 2003.  Proceeds of the sale of ENT will be used to reduce
group borrowings.



ENT, which is based in Tennessee, USA, has sales of #30m and employs some 150
people in the development, manufacture and marketing of products for ear, nose
and throat surgery.  It is the leading player worldwide in otology, providing
vent tubes and middle ear implants, and has a significant business in the
sinus, rhinology and head & neck sectors.  ENT enjoys good relations with
leading ENT surgeons worldwide and has pioneered many developments in ENT
surgery over the last 40 years.  Pre-tax profits in 2000 were #6m on net
assets of #14m.



Chris O'Donnell, Chief Executive of Smith & Nephew, said: "ENT is a good
business, but does not fit our strategic direction in terms of size and reach.
It will be better placed in a company which can help it develop its
potential."



"With the sale of ENT, Smith & Nephew has completed its reshaping from a
wide-ranging healthcare business into a highly focused advanced medical
devices business concentrated on orthopaedics, endoscopy, advanced wound
management and rehabilitation.  We are now well placed to take advantage of
the higher growth offered by these markets, and grow both organically and by
acquisition."





Enquiries:


Chris O'Donnell, Chief Executive             Tel: +44 (0) 20 7401 7646
Smith & Nephew plc                           Fax: +44 (0) 20 7930 3426

David Yates                                  Tel: +44 (0) 20 7831 3113
Financial Dynamics                           Fax: +44 (0) 20 7831 6341

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