Smiths Group plc Preliminary Results for the period ended 31 July 2007 unaudited

Smiths reports 9% increase in headline profit before tax in 2007 and raises the annual dividend by 8.5%

Preliminary Results for the period ended 31 July 2007 (unaudited)

¹ In addition to statutory reporting, Smiths Group reports its continuing operations on a headline basis, which shows underlying performance. Headline profit is before exceptional items (incl. impairment of assets), amortisation of acquired intangible assets, profit/loss on disposal and financing gains/losses from currency hedging.

Summary

During a year of major change in which the company sold its Aerospace business and returned

£2.1 billion to shareholders, headline pre-tax profit on the continuing operations increased by 9%. Headline operating profit increased only slightly, held back by a £21m currency translation effect. On an underlying basis, sales increased by 5% and headline operating profit on the continuing operations by 7%. Margins improved by 30bps to 16.1%. Operating cash-flow, after capex, was 75% of profit, and net debt decreased from £923m to £588m. The Board is recommending a final dividend of 23.5p, bringing the annual dividend to 34.0p, an increase of 8.5%.

Commenting on the results, Keith Butler-Wheelhouse, Chief Executive said: “We achieved solid underlying growth in the year, with strong performances from Detection, John Crane and Interconnect. Medical was held back by supply chain disruption, but this has now been resolved. All three divisions have made a good start to the new financial year. Smiths continues to build leadership positions in growth markets and, looking ahead, the outlook in our sectors remains robust. In Detection, the significant contract wins announced today demonstrate the underlying strength of this high-growth, high-technology business.”

To read the full press release please click on the following link:

Preliminary Results 2006 Press Release (Word Doc)

A meeting with analysts will be webcast at 9:00am UK time today on www.smiths.com/ir and archived there soon after the event.