FEDERAL COURT OF AUSTRALIA UPHOLDS SMITH & NEPHEW'S APPEAL

(Full text of statement. Contact details below.)

Federal Court of Australia Upholds Smith & Nephew's Appeal

Court overturns previous interlocutory injunction against
Smith & Nephew's foam dressing kits in Australia

MELBOURNE, Australia, Oct. 10 /PRNewswire-AsiaNet/ -- Smith
& Nephew Inc.'s Advanced Wound Management division (LSE: SN;
NYSE: SNN | Quote | Chart | News | PowerRating) 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 7606

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,
specialising in Orthopaedics, 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
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 operates in
32 countries around the world. Annual sales in 2008 were nearly
$3.8 billion.

* Trademark of Smith & Nephew. Certain marks registered US
Patent and Trademark Office.

SOURCE: Smith & Nephew Inc.

CONTACT: Investors, Liz Hewitt,

+44 (0)20-7401-7606,

Group Director Corporate Affairs, Smith & Nephew; or

Press, Katie Cralle,

+1-212-333-3810 , Brunswick Group; or

Other Inquiries,

Leon Hoare,

+61-3-8540-6777,

Smith & Nephew Healthcare, Advanced Wound Management

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