Transaction in Own Shares

13 February 2017

Smith & Nephew plc (the "Company")

Commencement of Quarterly Buy Back Programme

The Company will now commence its Quarterly Buy Back programme of 1,299,491 of its Ordinary shares of US 20¢ each through the Bank of America (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 4 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 16,250,000 and the maximum number of shares that will be purchased under the Buy Back Programme is 1,299,491. The Buy Back Programme will commence on 13 February 2017 and will end no later than 21 February 2017.

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

Tony Llewellyn

Deputy Company Secretary

Smith & Nephew plc

Tel: 01923 477410