Transaction in Own Shares

 1 August 2016

Smith & Nephew plc (the "Company")

Commencement of Quarterly Buy Back Programme

The Company announces that it will today commence its Quarterly Buy Back programme over 1,570,000 of its Ordinary shares of US 20¢ each through Merrill Lynch International (the "Buy Back Programme").

The Company intends to hold these shares in Treasury.

These shares were used in connection with employee share schemes in Quarter 2 2016 and will be purchased at the prevailing market price.

The purpose of this Buy Back programme is to reduce the share capital of the Company, in order to keep it broadly constant. The maximum pecuniary amount allocated to the Buy Back Programme is £20,000,000 and the maximum number of shares that will be purchased under the Buy Back Programme is 1,570,000. The Buy Back Programme will commence on 2 August 2016 and will end no later than 5 August 2016.

This announcement is made in accordance with the Market Abuse Regulation 596/2014.

Elaine Richardson

Deputy Company Secretary

Smith & Nephew plc

Tel: 020 7401 7646