FOR IMMEDIATE RELEASE

Tokyo, January 14, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, in commemoration of its 20th anniversary of privatization, it would launch a series of afforestation and forest conservation projects both in Japan and overseas. As the first of these initiatives, JT will launch a planting project in Nakahechicho in Wakayama prefecture, Japan, in March 2005.

JT, as a partner of the prefecture-organized ''Kigyo no mori (Forest of companies)'' afforestation program this time, will plant approximately 180,000 trees such as zelkovas, oaks, maples and Japanese cypress in the vicinity of the traditional pilgrimage route of the Kii mountain range, which is listed as a World Heritage Site in Wakayama, Japan. In this 10-year program, JT will begin tree planting, which will last five years, in March this year, and will continue to cultivate these trees for another five years. The planting area is expected to amount to 50 hectares, or approximately 124 acres.

JT, which operates in three core business areas, tobacco, pharmaceutical and foods, consumes natural raw materials such as tobacco leaves, paper (pulp), vegetables and tea leaves to produce a variety of its product portfolio. As a socially responsible company, JT places great importance on renewable environmental resources and environmental conservation and the afforestation project is a part of this commitment.

A signing ceremony for the forest conservation agreement will be held with the attendance of Mr. Yoshiki Kimura, the governor of Wakayama prefecture, Mr. Mitsutoshi Manago, the mayor of Nakahechicho, and Mr. Katsuhiko Honda, President and CEO of JT, on January 20, 2005, in Tokyo.

Following the planting project in Wakayama, several other afforestation and forest conservation projects will follow. The locations and details of those activities will be announced once they are confirmed.

###

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.