CNCT.L Regulatory News (CNCT)

For Immediate Release 6 March 2012

Smiths News PLC

New opening of the Birmingham depot

Smiths News PLC, the UK's leading wholesaler of newspapers, magazines and books, is pleased to announce that it has opened a new depot in Birmingham.

The new Birmingham depot is the most significant network change within Smiths News over the last 12 months. This purpose built 55,000 sq ft. depot will amalgamate the operations of Birmingham, Redditch and Coventry as well as expanding its capacity further to take in additional operations.

The new facility will employ 160 staff picking circa 2.2 million newspapers and 1.1 million magazines per week. The Birmingham depot will also utilise 100 delivery contractors and supply product to over 2,000 retailers.

Mark Cashmore, Chief Executive of Smith News PLC commented:

"Once fully operational the new Birmingham depot will be a world class facility, capable of the highest standards of service and efficiency. The investment further demonstrates our industry leadership and commitment to the long term future of the newspaper and magazine supply chain."

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About Smiths News PLC:

Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines, and Bertrams, a leading UK book wholesaler.

Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 55% share of the newspaper and magazine wholesaling market in the UK. In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.

Bertrams, which was acquired on 20 March 2009, supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams has an approximate 45% share of the wholesale book market.

In August 2011 the company acquired Dawson Holdings plc and is currently integrating its businesses into the Smiths News Group. The principal asset, Dawson Books is a leading supplier of academic books in the UK and internationally.