1. www.smithsdetection.com © 2009 by Smiths Detection: Proprietary Data Smiths Detection Investor Day Wiesbaden, 27 January 2009 Opportunities to create value

2. © 2009 by Smiths Detection: Proprietary Data | 2 Philip Bowman, Chief Executive, Smiths Group Plc

3. © 2009 by Smiths Detection: Proprietary Data | 3 Observations on Smiths Detection: an attractive business model Global market leader with leading edge technologies Presence in all the key Detection segments Strong growth track record Growth driven by threats, legislation & new technologies - provides some resilience Strong routes to market based on customer relationships and reputation Expertise in complex product engineering

4. © 2009 by Smiths Detection: Proprietary Data | 4 Objectives for today Outline the business strategy Explore the key drivers of future growth Demonstrate how we are managing the growth challenges Recent developments in R&D Visit our manufacturing facility and product demonstrations Opportunity to meet the management team 1 2 3 4 5 6

5. © 2009 by Smiths Detection: Proprietary Data | 5 Stephen Phipson, President, Smiths Detection

6. © 2009 by Smiths Detection: Proprietary Data | 6 Today’s agenda 08:30 - Presentation Stephen Phipson - Covering the dynamics of the business Cherif Rizkalla, Security & Inspection operations Mal Maginnis, Military & Emergency response operations Bill Mawer, Diagnostics. Q & As 11:00 - Transfer to Smiths Detection facility 11:30 - Tour of X-ray R&D and manufacturing facilities, including product demonstrations 13:00 - Lunch 14:00 - Transport to airport

7. © 2009 by Smiths Detection: Proprietary Data | 7 Smiths Detection - an attractive investment case Market leader in a growth business with high barriers to entry Smiths Detection growth range.* Sales: 10-12%** Margins: 17-20% **Organic growth at constant currency *Range of underlying growth over 3 year period Positive outlook, driven by events, changing risks and new technologies Business underpinned by leading edge technology Some resilience through diversity of markets, customers and global spread Margins set to remain strong; sales volumes variable in any given period Opportunities for value creation, including adjacent regulated markets

8. © 2009 by Smiths Detection: Proprietary Data | 8 Smiths Detection historical overview Smiths Detection is: The world leader in the provision of Government regulated systems to detect and identify CBRNE materials - more than double the size of its nearest competitor. A prime contractor with 85% of sales to more than 100 governments globally CBRNE: Chemical, biological, radiological, nuclear, explosives Sales growth since 2001 (£m) Underlying growth Financial performance 2008 £m Sales509+12% Trading profit93+2% Margin18%

9. © 2009 by Smiths Detection: Proprietary Data | 9 Worldwide security market ~ £75bn Personnel services - guards, consultancy, etc… Other: e.g. access control. IT security, fire & alarm, etc We compete in ~ 4% of the market Sensors Sensor integration Sensor integration Sensor networking Sensor networking Total systems Expanding the addressable market Where Smiths Detection sits in the security sector £3.5bn Detection systems

10. © 2009 by Smiths Detection: Proprietary Data | 10 Transportation Military Emergency responders Ports & Borders Critical infrastructure Non-security Smiths Detection fact file Sales 2008: £509m Americas RoW EU 8 manufacturing centres occupying 86,500 sq metres/ 0.9m sq. ft. 14 regional sales offices Sales to 160 countries R&D in 6 countries 2300 employees 538 engineers and scientists By sectorBy geography

11. © 2009 by Smiths Detection: Proprietary Data | 11 COMPETENCE CENTRES: Manufacturing /R&D Wiesbaden: Imaging; explosives Paris: Hi-energy X-ray Watford: Chem/bio/diagnostics Edgewood: Chem/bio/integration Toronto: Explosives Danbury: FT-IR Manufacturing: St Petersburg: X-ray Alcoa: X-ray R&D: Pasadena: chemical Boston: bio Newport: sensor mgmt Cork: mm-wave Global HQ, Watford UK CENTRAL TEAM: 53 (Technology/ Global IT/ Business Development/ Projects) Major manufacturing sites Sales/Service centres (#) = employees at Sept 2008 R&D / specialist centres Pinebrook, NJ (91) Warren, NJ (121) Sydney, Australia (21) Montreal, QC (33) Watford, UK (44) Grimsby, UK (9) Dubai, UAE (42) New Zealand (8) Thailand (13) Beijing, China (13) Indonesia (2) Singapore (38) Pasadena, CA (20) Boston, MA (10) Newport, RI (27) Cork, Ireland (26) Danbury, CT (146) Alcoa, TN (68) Edgewood, MD (227) Wiesbaden, Germany (592) Paris, France (181) Watford UK (248) St. Petersburg, Russia (39) Milan, Italy (12) Luxembourg (3) Toronto, ON (198) Total employees 2300 globally, including 538 R & D engineers Moscow, Russia (3) Smiths Detection has true global presence

12. © 2009 by Smiths Detection: Proprietary Data | 12 Smiths Detection organisation Stephen Phipson President Security and Inspection Manufacture; R&D; Sales Military and ER Manufacture; R&D; Sales Asia Pacific, Sales Global operations Diagnostics Crossmatch Technologies Strategic investments Functional Finance Human Resources Operations Legal Counsel Strategy & Communications Government Relations Information Technology Global operations restructured during 2007/8 Formation of global Security & Inspection Previously based on regional centres serving ‘civil’ & ‘military’ markets Now integrated global units focused on key market sectors Supported by common services plus central Technology and Operations Councils

13. © 2009 by Smiths Detection: Proprietary Data | 13 There are growth opportunities in all our markets over time Total addressable market CAGR 10-12% Core markets 2007 ~ £2.6bn Core markets 2012 ~ £4.3bn Adjacent markets Adjacent markets Total market ~ £ 3.5bn Total market ~ £ 5.8bn Security remains high on governments‘ agendas - long term forecast remains positive Contuinuous technology evolution for changing threats Contracts are becoming bigger Demand for integrated systems - from sensor supply to complete solutions Higher dependency on key projects/ customers Economic downturn will influence procurement in some market sectors, slowing growth rates Competition is becoming more difficult Further market consolidation expected Market dynamics are becoming more challenging but may create opportunities

14. © 2009 by Smiths Detection: Proprietary Data | 14 The security sector - strongly varying market characteristics Market contains varied customer groups in key sectors with different characteristics: Transportation Technologies highly government regulated Event driven Overriding need to increase passenger throughput Ports & Borders Moving from unregulated to greater government influence Investment subject to discretionary governmental budgets Military Major contracts, principally with US, UK, India, Japan Long development and acceptance times Subject to fluctuating government budgets Common characteristic - high barriers to entry Technology regulation by governments High R&D investment delivering high level IP Certification/QA - long process Extended contractual process High service levels required Example - automatic explosives detection software development required ½ million man hours

15. © 2009 by Smiths Detection: Proprietary Data | 15 Smiths has a broad range of technologies for different markets ChemicalBiologicalRad/NucExplosives Technologies IMS/FTIRPCR/ (bio)Hi-energy X-ray incl. mm-wave IMS/ trace (Chem ident.) X-ray hi-energy Backscattertrace Spectrometry Markets Transportation Ports & Borders Critical Infra. Military Emergency Response

16. © 2009 by Smiths Detection: Proprietary Data | 16 Competitor examples ChemicalBiologicalRad/NucExplosives Technologies IMS/FTIRPCR/ (bio)Hi-energy X-ray incl. mm-wave IMS/ trace (Chem ident.) X-ray hi-energy Backscattertrace Spectrometry Competitive landscape by technology

17. © 2009 by Smiths Detection: Proprietary Data | 17 Strong programme expenditure maintained by key US government departments DHS budgets - Annual growth beyond 2009 is forecast at ~5% pa to 2012 Major Smiths Detection DHS contracts: TSA (airports) - Automatic explosives detection x-ray CBP (border protection) - Cargo screening systems DNDO (nuclear detection) - Development of portable radiation detection system

18. © 2009 by Smiths Detection: Proprietary Data | 18 Chem/bio sensors market forecast 2007-12. CAGR - 16.1%. DoD comprises 70% of total world market Strong programme expenditure maintained by key US government departments Forecasts - Frost & Sullivan Major Smiths Detection JPEO contracts: JCAD personal sensor - Development & build contracts CBPS (collective protection) - Development & build contracts

19. © 2009 by Smiths Detection: Proprietary Data | 19 Risk matrix Probability of incidence Consequence Radiological attack (“dirty bomb”) Chemical attack Biological attack Nuclear attack Explosives attack Key points Rising probability of a dirty/ nuclear bomb incident Increasing fear of chemical agent attack Liquid explosives increase complexity of threat scenario Illegal trafficking of nuclear radiation material Training & information for terrorists broadly available Terrorism increasingly associated with weapons of mass destruction The changing nature of the threat - from hijacking to imaging Source: Civitas

20. © 2009 by Smiths Detection: Proprietary Data | 20 New technology start- ups often only focus here Revenue generation Revenue generation Perception of threat or event Government Regulation Technology Development Certification or quality approval Government or private contractual process Deployment Service and support Evolution or replacement (new threats, etc.) Getting more important with increasing standardisation and requires investment Lobbying Internal/external R&D invest Understand + influence process Revenue generation Route to market - Sales cycle in regulated markets, e.g. airports 3-12 MonthsProduct lifecycle 3-8 years 6 months - 2 years1-3 years Often underestimated by new entrants Often underestimated by new entrants Good service performance is key to ensure repeat business Process applies to 70-75% of SD business Reputation, customer understanding and expertise are critical Marketing & Sales

21. © 2009 by Smiths Detection: Proprietary Data | 21 Products are based on approved government technology standards Revenue generation Revenue generation Perception of threat or event Technology customisation Sales and contractual process Deployment Service and support Upgrade and replacement Internal/external R&D invest Revenue generation Route to market - Private Industry - Critical Infrastructure 1-3 MonthsProduct lifecycle 3-8 years 6 months - 2 years Customers are less specialised & information/ consulting is more critical Marketing & Sales Mainly only internal R&D required

22. © 2009 by Smiths Detection: Proprietary Data | 22 Sector characterised by variable sales phasing Order intake is lumpy, dependent on contract size/timing and government fiscal periods Number and size of large contracts is increasing - % of revenue from contracts >£5m in 2008 was 35% (2007 - 30%) Reported sales Smiths Detection - Sales 0 FY06FY07FY08 200 400 600 £m H1H2 Smiths Detection - Monthly Order Intake Monthly order intake … as a result sales growth may vary outside 10-12% range in any reporting period

23. © 2009 by Smiths Detection: Proprietary Data | 23 Managing margins as the business grows Pressures: Larger contracts = tighter pricing Larger market = more aggressive competition Higher government expenditure = greater cost and pricing scrutiny Opportunities: R&D = new products = premium pricing Higher volumes = - Manufacturing economies of scale - Greater low cost sourcing opportunity - Greater lean manufacturing opportunity across more product lines Target margin range: 17-20% Business growth creates both margin opportunity and pressure

24. © 2009 by Smiths Detection: Proprietary Data | 24 Opportunities for margin enhancement: recent examples aTiX cost optimisation Detector manufacturing optimisation Sourcing:Lower cost component sourcing eg cabinet supplier from Eastern Europe Design changes:Replacement of one major component, linear motor by servo motor Lean manufacturing:New manufacturing layout; improved material flow; KANBAN principles; reduced non-value added work; outsourcing non-core components. Lean manufacturing:Greater automation; multiple machine operation; outcome - more productive time. Sourcing:Lower cost component sourcing Production focus:Greater outsourcing, shift working efficiencies, manufacturing optimisation, better sub-contractors’ network; automatic software loading Increased HCVM manufacturing capacity at existing site

25. © 2009 by Smiths Detection: Proprietary Data | 25 The working capital profile has changed Working capital requirements vary based on contract size, timing and payment terms. Payment terms vary by customer and working capital requirements can range between 30% - 70% of total contract value as a result. As trend toward bigger contracts continues payment terms are becoming a more important part of contract negotiations with customers. Project with no Advance PaymentProject with a 30% Advance Payment SepNovJanMarMayJulSepNovJanMarMay Year End SepNovJanMarMayJulSepNovJanMarMay Working Capital @ 70% of Project Value Working Capital @ 40% of Project Value

26. © 2009 by Smiths Detection: Proprietary Data | 26 Manufacturing focused on centres of excellence… Manufacturing focused at major centres of excellence (inc. R&D) Wiesbaden - Imaging and explosive Paris - High energy X-ray Toronto - Explosives Watford - Chemical/biological Edgewood - Integrated military systems & chemical Danbury - Chemical identification Looking at distribution of manufacturing but limitations on moving production: Maintain link with R&D centres of excellence Manufacturing is increasingly about in-house assembly Products are “classified” Increasing Military production in US

27. © 2009 by Smiths Detection: Proprietary Data | 27 Projects - ERP Investment replaces 14 legacy systems REACH Vitry Alcoa Pine Brook Toronto Newport Live on SAP Investment budget - £22m Benefits: Working capital efficiencies (£11m) and annual cost savings (£8m) Wiesbaden, Dubai St. Petersburg, UK S&I, Asia Pacific, Laval Live on SAP Implementation H2 FY ‘07Q1 FY ‘08 Q2 FY ‘08 H2 FY ‘09 9 Military & ER sites

28. © 2009 by Smiths Detection: Proprietary Data | 28 Projects - Investment aligned with growth opportunities Edgewood 130,000 sq. ft / 12,000 sq. m Production of sensors and integrated systems Target completion Summer 2009 Wiesbaden 43,000 sq. ft / 4,000 sq. m Expansion to meet growth of x-ray, including aTiX Completed July 2008 Alcoa Adding 90ft high gantry system testing bay Provides first HCV showcase facility in the US Facility to support CBP contract Completed 2008 Capital projects to expand manufacturing capacity

29. © 2009 by Smiths Detection: Proprietary Data | 29 Investing for the future to enhance capability Company-funded R&D investment 2008 - £29m - up 10% on FY07 Company funded investment is 5.7% of sales Customer funding of £9m adds another 1.7% of sales with total spend of £38m Continued investment in performance improvement and product cost reduction Programmes mostly address specific issues, often government initiated Continuous strong investment record in R&D £30m£33m£38mTotal R&D investment Customer funded Company funded £m % of sales 1 3 5 7 7.2%7.5%7.4% 5.9%5.4%5.7% Total R&D as % of sales Company R&D as % of sales

30. © 2009 by Smiths Detection: Proprietary Data | 30 Investing for the future to enhance capability Targeted R&D expenditure in: X-ray screening - Cargo screening - Airport checkpoint explosive detection Chemical and trace - Handheld detectors Millimetre wave system - Product launched October 2008 Biological detection - Veterinary and clinical applications HazMatID Ranger Hand-held FT-IR chemical identifier HPRID Hand-held radioisotope identifier SABRE CENTURION II Air monitoring system MMTD Hand-held multi-threat detector SmartBio Sensor Real time bio-agent detector FirstView Security systems management Six new products launched at major US security show September 2008 following internal development

31. © 2009 by Smiths Detection: Proprietary Data | 31 Strategic investment - Diagnostics Taking Smiths Detection technologies and experience into new growth markets Building on existing experience of developing fast detection technologies, built into ruggedised instruments easily operated in the field Heavily regulated sector - similar type of customer base to security Opportunities to develop through partnerships Strategic investments

32. © 2009 by Smiths Detection: Proprietary Data | 32 Rapid disease diagnosis for vets Providing rapid on-site diagnosis of diseases instead of lengthy lab analysis Portable, lightweight, rugged, easily decontaminated, easy-to-use World’s first portable vet diagnostic laboratory, initially for Avian Flu and Foot & Mouth Disease Trials to validate system - January: Institute of Animal Health - February: Field trials Principal opportunities: Interest from USA (DHS and USDA), Australia, Ireland, South America, Vietnam Advantages: Currently sample sent to labs. Field test allows vet to deal with sick animal on site. Analysis in less than 90 minutes - big potential for LATE-PCR in other markets Strategic investments

33. © 2009 by Smiths Detection: Proprietary Data | 33 Diagnosing infectious diseases at the Point of Care Next step - clinical diagnostics Uses same technology platform as the veterinary instrument 5-25 simultaneous tests Genuine sample in-Answer out platform suitable for operation at the point of care Developing tests for MRSA and clostridium difficile Will follow with further tests for patient screening and critical care Potential application in cancer diagnostics Seeking partners Strategic investments

34. © 2009 by Smiths Detection: Proprietary Data | 34 Strategic investments Strategic investment - Cross Match Cross Match - leader in biometric identity management Fingerprint, palm and full-hand scanners, facial recognition systems, iris scanning technology, document readers Merged with Smiths Heimann Biometrics in 2005 Smiths holds 34% stake Addressable biometrics identification market 2009 - $1bn Current turnover - c.$90 million Approx half of sales from US Government departments and agencies National programmes include - US DoD (battlefields and bases) - US Department of State (embassies) - US DHS (immigration and border control) - US Department of Justice (booking and prosecution) - UK Home Office (UK visas program)

35. www.smithsdetection.com Coffee Break

36. © 2009 by Smiths Detection: Proprietary Data | 36 More technologies in more sectors in more countries than any other company Taking detection technologies into key markets Security and Inspection Established businesses Airport securityPorts & BordersCritical infrastructure Military CBRN detectionIntegrated systemsEmergency response Established businesses Military and Emergency Response

52. © 2009 by Smiths Detection: Proprietary Data | 52 Security & Inspection

53. © 2009 by Smiths Detection: Proprietary Data | 53 Wide range of technologies Explosives Trace Detection Checkpoint X-RayExplosives Detection System Sensor management Cargo X-RayMillimetre wave Searching for: explosives, weapons & contraband in a wide range of markets Airport SecurityCritical InfrastructurePorts & Borders Security and Inspection market Security & Inspection

54. © 2009 by Smiths Detection: Proprietary Data | 54 Current characteristics of the sector Continuous terrorist threat is driving industry forward Market driven by threat levels & events Trend towards larger contracts Governments moving to increased regulation Buyers looking for: - greater speed of detection - fewer false alarms - increased throughput Steady innovation stream Increasing levels of systems integration Increasingly competitive landscape 2003 Indonesia 2004 Madrid 2007 Glasgow 2008 Mumbai 2001 New York2005 London 2002 Bali2006 liquids Security & Inspection

55. © 2009 by Smiths Detection: Proprietary Data | 55 No clear no.2 company in market, behind Smiths Detection Security and Inspection - market position Global Leader More than 50,000 X-Ray machines sold worldwide Recognized technology leader in X-Ray and explosives trace detection Broadest range of technology Independent survey of the global market for weapons and contraband detection equipment 2006, sensors only. Not military or ER markets. Source IMS Research Security & Inspection

56. © 2009 by Smiths Detection: Proprietary Data | 56 Focus on aviation security market Airport security focuses on: Checkpoint (plus staff screening) Checked baggage screening Air cargo screening Service Relative levels of airport security investment plans worldwide Source - Smiths Detection estimates Security & Inspection

57. © 2009 by Smiths Detection: Proprietary Data | 57 Focus on aviation security market Description: Screening of passengers, bags, cargo and airline staff, to detect weapons and explosives Key features Highly regulated, high barriers to entry Long product introduction cycle Different process in US and ROW Customers: Combination of Government regulators and airport operators. Key customers: TSA, BAA, German Ministry of Interior, Siemens Trends: New technology for screening of people Automated explosives detection; liquids Focus on improving passenger throughput System integration Increasing focus on air cargo Security & Inspection

58. © 2009 by Smiths Detection: Proprietary Data | 58 Airports - Hand baggage & passenger screening New threats and increasing passenger numbers require new solutions Passenger traffic currently slowing down but only a temporary drop as overall trend is steady growth Growth drivers: Increased throughput in existing terminals (automation) New airports / terminals being constructed New threats (ceramics, plastics, liquids) More data requirements and integration of technologies Actions Strong ongoing internal R&D Moving from single products to more complete systems Partnerships considered for non-core technologies required Working with airports, airlines and governments to drive continuous technology evolution and help define future standards “Demand for flights (annually) in Europe will rise from 10 million today to 20.4 million in 2030” Source - The ‘Challenges of Growth’ published December 2008 by EUROCONTROL, the European Organisation for the Safety of Air Navigation. Airports have to process more passengers in shorter time Source: EU travel research 1600 400 1973 2003 19931983 Passengers carried (m) Oil crisisGulf crisisWTC attack Historical passenger growth Security & Inspection

59. © 2009 by Smiths Detection: Proprietary Data | 59 Aviation security: R&D for checkpoint of the future aTiX automatic explosives detection x-ray system Launched October 2007 Platform based solution with software upgrades (requiring certification) for - Laptops in bag - Liquids identification Designed with iLane for increased throughput Pricing reflects technology providing staff cost savings, equipment replacement Security & Inspection

60. © 2009 by Smiths Detection: Proprietary Data | 60 aTiX automatic explosives detection in action Security & Inspection Detecting a sheet explosive hidden behind electronic device

61. © 2009 by Smiths Detection: Proprietary Data | 61 Aviation security: R&D for checkpoint of the future eqo people screening portal Launched October 2008 Safe millimetre-wave technology Live image presentation High resolution images of concealed threats Simple and rapid passenger processing Minimal footprint Privacy issue solutions a priority Security & Inspection

62. © 2009 by Smiths Detection: Proprietary Data | 62 eqo in action - people screening for wide range of threats Security & Inspection Multi threat detection - Security threats - Non-security threats Full motion Video like image Real time - live High resolution

63. © 2009 by Smiths Detection: Proprietary Data | 63 Airports - Hold Baggage Screening Opportunities: Internal R&D to match new standards Development and partner for next generation EDS Good government relations required to support legislation change New standardisation is driving market for AT systems 2006 Standard 1 Standard 2 Standard 3 2018 We have 2012 Continuously raising standards We have must meet introduced Currently being defined by European legislator Further technology-driven opportunities From lobby to in-line solution Security & Inspection

64. © 2009 by Smiths Detection: Proprietary Data | 64 Airports - Air cargo screening Air cargo is a remaining gap in aviation security Only 5% of US air cargo screened up to 2007 New US legislation requires 100% screening of cargo carried aboard passenger planes by 2010 Challenges: Requirement for single technology solution Need to avoid disruption by maintaining high throughput Opportunities: Provide existing products (trace, conventional/ AT X-ray) to meet most of the requirements but at lower throughput rates. Currently identifying the best replacement technology Legislative pressure for air cargo screening solution Security & Inspection

65. © 2009 by Smiths Detection: Proprietary Data | 65 Description: Screening cargo and freight at ports, airports and borders to prevent transit of weapons, drugs and contraband Key features High growth as governments move towards 100% inspection Increasing convergence of customs & border security operations US focus on ‘dirty bomb’ materials Crowded and competitive market place Market drivers: US pushing pre-shipment screening High throughput requirement needing greater automation Search for reliable automatic explosives detection Improved Rad/Nuc detection Ports and borders market Evolution of screening Manual inspection Non-invasive inspection Integrated security Fully integrated port systems 100% screening Security & Inspection

66. © 2009 by Smiths Detection: Proprietary Data | 66 Market position in Ports & Borders HCV Stationary HCV Mobile (US and EU) Market size 2008 - £480m Source - Smiths Detection (estimate, incl. Rad/Nuc) Source - University of Le Havre study, 2008 Security & Inspection Smiths Detection Nuctech SAIC AS&E Rapiscan Others HCV Gantry

67. © 2009 by Smiths Detection: Proprietary Data | 67 Investment aligned with growth opportunities Cargo product range enhancements New HCVP (Passthru), speeds scanning process for higher throughput. Networking for remote analysis - container information can be analysed during journey High Resolution imaging for detailed views Security & Inspection

68. © 2009 by Smiths Detection: Proprietary Data | 68 Investment in cargo screening for advanced detection Material discrimination in a single scan - a major technology breakthrough High Energy Discrimination for precise information Orange = organic: drugs, explosive, alcohol Green = compound: aluminium, PVC, liquid explosive inside steel barrel Blue = inorganic: steel, guns, gold Security & Inspection

69. © 2009 by Smiths Detection: Proprietary Data | 69 Strong requirement by Russian Government to protect extensive borders - illegal and dangerous shipments Delivered 50+ systems FY 07/08 Investment leads to major contract opportunities Major market served by strong manufacturing presence, St Petersburg Security & Inspection

70. © 2009 by Smiths Detection: Proprietary Data | 70 Radiological/Nuclear detection opportunity Technology would complement our offering and is important for US programs Market est. up to £700m in 2012 across all our core markets The probability of an RDD incident has increased and is driving significant investments in technology Initial capability developed through partnerships Opportunity to develop screeening portals, building on ports & borders experience Hand-held product launched 2008. Source: DNDO/DHS budget briefs, Booz Allen Project examples US - Domestic Nuclear Detection Office (DNDO) improving the capability to detect and report unauthorized attempts to import, possess, store, develop, or transport nuclear or radiological material. 2006 - Contract award to provide next-generation radiation detection and identification systems. Hand- held and Backpack Detectors Security & Inspection

71. © 2009 by Smiths Detection: Proprietary Data | 71 Critical Infrastructure characteristics Regulation is patchy Insurance requirements creating an opportunity Highly fragmented market Key sectors Mass Transit - successful trials leading to new business Sports events - London Olympics opportunity. Special team formed. Facilities - Utilities, large US market, government and high risk buildings protection, including hotels Opportunities: Leverage existing government customer base Requirement for high throughput checkpoint & integrated solutions Partnerships for additional products IP Video Sensor integration X-ray Explosives detection Mail screening HVAC chemical detection Emergency response equipment Applicable technologies Sports/events Facilities Mass Transit Security & Inspection

72. © 2009 by Smiths Detection: Proprietary Data | 72 Two Critical Infrastructure examples FirstView: Remote Cargo Inspection: Port Qasim, Pakistan Protect: Danbury Station Security & Inspection

73. FirstView Remote Cargo Inspection: Port Qasim, Pakistan Waiting Area Rad Portal Cargo X-Ray X-Ray Image INTERNET

74. National Targeting Center, USA Container ID: PSCU1044960 Container ID: JSE102163870 Container ID: JAE103059213

76. Maps

77. Real-time Sensor Data

78. Live Meteorological Data

79. ConOps, SOP’s, Recommended Actions, Audit Trail

80. Wide Area Map & Live Video

81. A B

85. First Responder Jacks Command & Control Field Locations

86. Smiths Detection Inc. END

87. © 2009 by Smiths Detection: Proprietary Data | 87 Security & Inspection market drivers - conclusions Threats & events Continuing terrorism Sports & events (e.g. Olympic games) Iraq investment to rebuild security infrastructure New threats Regulation Legislation for checkpoint and EDS performance standards Changes in restrictions - laptops; liquids Passenger body screening (medium term) US 100% cargo screening Radiation screening Investment Continuing airport investment Europe - development of pan-European high speed rail links Global Cycle Threats & events Investment Regulation Security & Inspection

88. © 2009 by Smiths Detection: Proprietary Data | 88 Military & Emergency Response

89. © 2009 by Smiths Detection: Proprietary Data | 89 Laboratory science in the hands of the professionals Searching for and protecting against: chemical, biological, radiological, nuclear and explosive threats in two closely aligned markets MilitaryEmergency response Military and Emergency Response Military & Emergency Response

90. © 2009 by Smiths Detection: Proprietary Data | 90 Strategic partner Systems Integration Through Life Capability Research, technology & Knowledge base Products and sub systems Role of Smiths Detection Military - Working with Governments

91. © 2009 by Smiths Detection: Proprietary Data | 91 Strong track record of supplying chemical & biological warfare detection capability now being expanded in adjacent areas Addressable market size: c. £300m pa Increased emphasis on: - Enhanced chemical detection - Integrated Systems - Multi-sensor and vehicle-based - Bio detection - Explosives/IED and RAD detection - X-ray screening Major contracts: - JCAD I; Profiler, Chem/Bio Protection System; - UK Light Role Team, Germany LCD Major opportunities: - JCAD II; - Chemical Standoff; Asia Pacific & EU Military CBRN detection capability The global market leader - 125,000 CW detectors deployed worldwide Military & Emergency Response

92. © 2009 by Smiths Detection: Proprietary Data | 92 Military - the changing market Market characteristics Changing dynamics: US administration/ budgets, Iraq war shift. Shift in emphasis to proven supplier with strong technical base and capacity Technology driven market Strong growth remains in new chem detectors, and in new systems of sensors and Integrated Systems and Explosives/IEDs. Opportunities: Continuous R&D to grow core business Constantly reviewing emerging technologies Building capabilities for integrated systems Broadening offerings for main segments (chem, bio, rad, protection, explosives, and integrated systems) Military & Emergency Response

93. © 2009 by Smiths Detection: Proprietary Data | 93 Integrated systems - becoming a prime contractor Tactical Meteorological Systems Customer requirements - highly mobile, self contained battlefield meteorological systems for various military missions Solutions - Building on generations of artillery support systems. New full met. system for Marines Additional customer benefits - strong user focus; advanced weather model packaged for military operations and support; shrinking footprint for improved ops and logistics Results - Selection to fulfil several generations of Army/Marines artillery support needs. 52 more systems recently ordered. Selected to develop broader all-mission system for Marines production decision within year. Contracts to date - $125 M. Establishes Smiths Detection as a prime contractor for integrated systems Military & Emergency Response

94. © 2009 by Smiths Detection: Proprietary Data | 94 Fast and reliable identification Ruggedised Systems Laboratory science in the hands of first responders Adding technologies - Raman, mass spectrometry Selling complementary products Technology for Emergency Response Military & Emergency Response

95. © 2009 by Smiths Detection: Proprietary Data | 95 Emergency Response Strategy based on a strong product pipeline Expand product rangeGrow non-US sales Strategy HGVI - combination of civil and military technologies. New Market sector. HazmatID Ranger - complements and extends success of HazmatID. Opportunities: Growing sales outside US, strong APAC and EU growth Expanding product range, vital to maintain our edge and leadership position HPRID Radiation detector HGVI Multi-sensor chemical detector MMTD multi threat detector HazMatID Ranger chemical identifier Recent product launches Military & Emergency Response

96. © 2009 by Smiths Detection: Proprietary Data | 96 Military & ER market drivers - conclusions Chem Detection - Product development will protect and grow global leadership base Collective Protection - (CBRNE) Taking capabilities into global markets. Potential Protection upsides in individual protective equipment and decontamination solutions. Integrated Systems - Major programs (MET, LRT) providing credentials, experience and organic assets to address growing market, esp. for CBRNE sensor integration. Explosive trace/X-ray Detection - Greater sales focus; further potential in IED and/or standoff detection. Bio and Rad Detection - New products launches into growing market. Military & Emergency Response

97. © 2009 by Smiths Detection: Proprietary Data | 97 Summary - an attractive investment case Market leader in a growth business with high barriers to entry Smiths Detection growth range.* Sales: 10-12%** Margins: 17-20% **Organic growth at constant currency *Range of underlying growth over 3 year period Positive outlook, driven by events, changing risks and new technologies Business underpinned by leading edge technology Some resilience through diversity of markets, customers and global spread Margins set to remain strong; sales volumes variable in any given period Opportunities for value creation, including adjacent regulated markets

98. www.smithsdetection.com

99. © 2009 by Smiths Detection: Proprietary Data | 99 Welcome to Wiesbaden 3 facilities in Wiesbaden region Erbenheim - 15,400 m² Production of automated X-ray systems, generators & sensors; R&D Centre; Admin. New production hall 4,600 m² opened July 2008 Nordenstadt 1 - 15,600 m² Conventional X-ray systems production Additional 10,900 m² added during 2008 Nordenstadt 2 - 8,500 m² Mobile & cargo inspection systems Home of the largest manufacturing facility in Smiths Group

100. © 2009 by Smiths Detection: Proprietary Data | 100 Groups for the site tour Stefan Aust Bernhard Semling Hermann Ries Hans Zirwes Joachim May

101. © 2009 by Smiths Detection: Proprietary Data | 101 Glossary APAC - Asia Pacific region. AT - Advanced Technology, the TSA’s program for advanced X-ray technologies for improved detection of potential threat items. BAA - Formerly British Airports Authority. aTiX - Advanced Threat Identification X-ray. Automatic explosives detection system for security checkpoints. CBRNE: Chemical, biological, radiological, nuclear, explosives. CT - Computed Tomography. Digital processing to generate a 3D image from a series of two-dimensional X-ray images. eqo - Name of latest millimetre-wave screening device from Smiths Detection. CBP - Customs & Border Protection (US). CBPS - Chemical Biological Protective Shelter (US). DHS - Department for Homeland Security (US). DNDO - Domestic Nuclear Detection Office (US). DoD - Department of Defence (US). EDS - Explosives Detection Systems. EMEA - Europe, Middle East, Africa. ER - Emergency Response. ERP - Enterprise resource planning (company information systems). FT-IR - Fourier-Transform Infrared spectroscopy. Analytical technique to identify unknown chemicals. HVAC - Heating Ventilation & Air Conditioning. IED - Improvised Explosives Device. IMS - Ion Mobility Spectrometry is an instrumental analytical method based on ionization to analyse chemical particles and vapours. IP - Intellectual Property also Internet Protocol. HCV - Heimann Cargo Vision, brand name for high energy x-ray screening systems. JCAD - Joint Chemical Agent Detector program (US). JPEO - Joint Program Executive Office for Chemical Biological Defense. Part of the US DoD. LATE-PCR - Linear-After-The-Exponential-PCR used in Diagnostics systems. LRT - Light Role Team is an MoD programme. mm-wave - Millimetre-wave a spectral signal that passes transparently through lightweight materials. MET - Meteorological. MoD - Ministry of Defence (UK). MRSA - Methicillin-resistant Staphylococcus aureus bacteria. P & B - Ports & Borders market sector. PCR - Polymerase Chain Reaction used in molecular biology to produce millions of copies of a specific DNA sequence. REACH - Reaching Excellence and Creating High-performance. (Smiths Detection’s ERP programme). RDD - Radiological Dispersal Device. S&I - Security & Inspection. TSA - Transport Security Administration (US). USDA - United States Department of Agriculture.