This Report provides a statement of progress in key EHS performance areas for the financial year ending 31 July 2003. EHS data is provided by our major wholly owned operations worldwide and encompasses some 85 per cent of our employees. We believe it provides a good overall representation of Smiths’ EHS ‘footprint’.

Recent Acquisitions and Divestments

Financial year ending 31 July 2003 saw significant changes to the structure of the Group. This report does not include data for Polymer Sealing Solutions (25 sites), the UK based Ventilation Systems business (7 sites) and Lodge Ignition, UK (2 sites) that were disposed of.

Data from Smiths Medical – Gary (formerly Bivona Inc) and Smiths Aerospace Mechanical Systems – Yorba Linda (formerly Able Corporation) are included for the first time in this report.

This report has been prepared primarily for our investors and customers. We expect that it will also be of interest to our employees and other stakeholders including the UK Government, trade associations, Non-Governmental Organisations and academics.