Press Release

FOR IMMEDIATE RELEASE

JT Board of Directors Raises Dividend Forecast

Tokyo, April 22, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, based on the company’s policy to aim to provide a competitive level of returns to shareholders in the marketplace, its board of directors has revised the forecast for its year-end dividend to JPY 7,000, an increase of JPY 2,000 over the earlier forecast of JPY 5,000, in consideration of the company’s overall performance in the previous fiscal year. In addition, it has proposed a payment of an additional dividend of JPY 1,000 to commemorate JT’s 20th anniversary as a joint stock company. As a result, JT’s expected dividend per share for the full fiscal year that ended March 31, 2005, totals JPY 13,000, including the interim dividend of JPY 5,000.

Fiscal year
ended March 31, 2005 Interim dividend
(Apr – Sep) Year-end dividend
(Oct – Mar) Total

Previous Forecast
(October 29, 2004) Dividend JPY 5,000 Dividend JPY 5,000 JPY 10,000

Revised Forecast
(April 22, 2005) Dividend JPY 5,000 Dividend JPY 7,000 JPY 13,000

Commemorative JPY 1,000 dividend

(Reference)

Fiscal year
ended March 31, 2004 Dividend JPY 5,000 Dividend JPY 5,000 JPY 10,000

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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