FOR IMMEDIATE RELEASE

Tokyo, March 15, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) today announced that the company and Daikin Industries, Ltd. (Daikin) (TSE: 6367), a global leading manufacturer of commercial and industrial use air conditioning systems, for the first time co-developed a residential use air purifier, "Flash Streamer Photocatalytic Air Purifier Plus" (list price: JPY 65,100), aimed at creating a more comfortable indoor environment for both smokers and nonsmokers. The air purifier, which effectively collects cigarette smoke and reduces its odor, is set for launch on April 1, 2005 in the Japanese market.

According to a study conducted by JT, about 50 percent of smokers refrain from smoking at home and most smokers hope that solving the problem of cigarette smoke and odor would allow for greater flexibility for smoking at home. In addition, according to a study conducted by Daikin, most customers purchase air purifiers primarily for the reduction of house dust and pollen in the air, and also to collect cigarette smoke and reduce its odor. JT created the concept of an air purifier based on the results of studies and with this in mind, Daikin developed an air purifier with a complex filtration system to collect cigarette smoke and reduce its odor more effectively than the existing air purifier on the market.

"We continue to work on initiatives to provide for a society where smokers and nonsmokers can coexist at outdoor venues, public transportation facilities, commercial facilities and offices," said Hiroyoshi Ebara, Head of the Social Environment Creation Division. "The arrival of the "Flash Streamer Photocatalytic Air Purifier Plus" will now also allow for a more comfortable indoor environment."

To allow for better accomodation between smokers and non-smokers JT has implemented a variety of initiatives, which includes the establishment of smoking spaces in public areas, such as airports and train stations, the launch of SmoCar 1 and 2 (stationary camper vehicles with comfortable smoking space), and a consultation program to provide a solutions on appropriate accommodation for smokers and nonsmokers in commercial facilities. JT has also conducted street cleaning activities together with citizens implemented at events across the country, and has launched a media campaign to promote better smoking manners.

Flash Streamer Photocatalytic Air Purifier Plus

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Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Camel, Winston, Mild Seven and Salem. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 4.625 trillion in the fiscal year ended March 31, 2004.