1 September 2006

WH Smith PLC

Demerger effective and trading expected to commence in shares of WH Smith PLC

All the conditions to the Demerger and the creation of two separately listed companies, WH Smith PLC ("WH Smith") (formerly New WH Smith PLC) and Smiths News PLC, have now been satisfied and the Demerger has become effective.

WH Smith is now the holding company for the Retail business only. Trading in WH Smith shares under the ticker ‘SMWH’ is expected to commence on the London Stock Exchange at 8.00am (BST) today.

CREST accounts will be credited with WH Smith shares at 8.00am (BST) today. Shareholders will, on 8 September 2006, be sent share certificates in respect of their holdings in WH Smith.

Enquiries:

WH Smith

Mark Boyle Investor Relations 020 7851 8820

Louise Evans Media Relations 020 7851 8850

The contents of this announcement have been issued by and are the sole responsibility of WH Smith.

Greenhill & Co. International LLP, which is regulated in the UK by the Financial Services Authority, is acting for WH Smith PLC as sponsor in connection with the demerger and for no one else and will not be responsible to any other person for providing the protections afforded to its clients, or for providing advice in relation to the demerger.

This announcement is an advertisement and does not comprise a prospectus relating to WH Smith PLC. It does not constitute or form part of any offer of securities, or constitute solicitation of any offer of securities. You should not purchase or subscribe for securities referred to in this announcement except on the basis of information in the prospectuses published in relation to WH Smith PLC (and any supplement or amendment thereto).

This announcement does not constitute a recommendation concerning the demerger, and should not be construed as legal, business, tax or investment advice. The value of shares can go down as well as up. Past performance is not a guide to future performance.

Shares in WH Smith PLC have not been and will not be registered under the United States Securities Act of 1933 (as amended) and will be issued in transactions that are exempt from or not subject to the registration requirements of such Act. In addition, shares in WH Smith PLC have not been and will not be registered under the securities laws of any state of the United States, and will be issued in reliance on available exemptions from such state law registration requirements.

ENDS