Transaction in Own Shares

Smith & Nephew plc

17 December 2010

Smith & Nephew plc - Transaction in Own Shares

Smith & Nephew plc announces that on 17 December 2010 it transferred a total of 13,047 ordinary shares of US$0.20 each to participants of the Smith & Nephew ShareSave Plan and the Smith & Nephew International ShareSave Plan, who had exercised options on that date.

The shares, which were all formerly held as Treasury shares, were transferred as follows:

·; 9,943 ordinary shares at an exercise price of 455.5p per share; and

·; 3,104 ordinary shares at an exercise price of 425p per share.

Following the above transactions, Smith & Nephew plc holds 62,720,798 ordinary shares in treasury, and has 889,960,217 ordinary shares in issue (excluding treasury shares).

Gemma Parsons

Deputy Company Secretary