Smith & Nephew plc Announces German District Court’s Findings on Infringement Case

DUSSELDORF, GERMANY--(Marketwire - May 06, 2010) - Smith & Nephew plc’s Advanced Wound Management division (LSE: SN) (NYSE: SNN) announced today that the German District Court in Düsseldorf has found that the adhesive wound care dressings of Smith & Nephew’s ALLEVYN Gentle Border product line infringe on EP 0 633 757, held by Mölnlycke Health Care AB.

“We are disappointed with this finding and continue to believe that the products of the ALLEVYN Gentle Border line do not infringe on any valid patent claim,” said Roger Teasdale, President of Advanced Wound Management at Smith & Nephew. “This finding does not make a ruling on the actual validity of the patent, which Smith & Nephew has applied to have revoked in Germany. Furthermore, this decision has no impact on any market outside of Germany and has no bearing on Smith & Nephew’s ability to sell any of the other products from the ALLEVYN dressing line in the German market. In addition, we are rolling out a new version of ALLEVYN Gentle Border in Germany, with equivalent performance to the current version.”

The enforcement of this decision will be subject to the findings of the German Federal Patent Court on the validity of the patent. Smith & Nephew previously asked the German Federal Patent Court to declare the patent in question invalid. A court date for the nullity request has not yet been set.

Notes about ALLEVYN Gentle Border

The Smith & Nephew ALLEVYN Gentle Border range is a clinically proven solution that is particularly effective on fragile or sensitive skin, reducing patient anxiety without compromising care. ALLEVYN Gentle Border is part of the larger ALLEVYN product line which is designed to cater to a wide range of wound types, providing better physician choice and patient comfort.

For more information about Smith & Nephew, please visit www.smith-nephew.com

About Us

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 2009 were nearly $3.8 billion.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. In particular, statements regarding expected revenue growth and trading margins discussed under “Outlook” are forward-looking statements as are discussions of our product pipeline. These statements, as well as the phrases “aim”, “plan”, “intend”, “anticipate”, “well-placed”, “believe”, “estimate”, “expect”, “target”, “consider” and similar expressions, are generally intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors (including, but not limited to, the outcome of litigation, claims and regulatory approvals) that could cause the actual results, performance or achievements of Smith & Nephew, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Please refer to the documents that Smith & Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith & Nephew’s most recent annual report on Form 20F, for a discussion of certain of these factors.

All forward-looking statements in this press release are based on information available to Smith & Nephew as of the date hereof. All written or oral forward-looking statements attributable to Smith & Nephew or any person acting on behalf of Smith & Nephew are expressly qualified in their entirety by the foregoing. Smith & Nephew does not undertake any obligation to update or revise any forward-looking statement contained herein to reflect any change in Smith & Nephew’s expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.


Inquiries
Investors
Phil Cowdy
+44 (0)20 7401 7646
Director Investor Relations
Smith & Nephew

Press
Justine McIlroy
+44 (0)20 7404 5959
Brunswick - London

Other inquiries
Markus Sebastian
+49 (0)40 879 744 100
General Manager
Smith & Nephew Advanced Wound Management Germany

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