FOR IMMEDIATE RELEASE

Tokyo, June 9, 2005 --- Japan Tobacco Inc. (JT) (TSE:2914) announced today that it will launch 13 new cigarette products on July 1, 2005. One of the new 13 products, "Mild Seven One Menthol 100's box," will be sold nationwide, with the rest sold in specific prefectures. This is the first time JT will bring 13 new products into the market at any one time.

With four new D-spec product launches, a total of 11 D-spec products will be available in the market. In the growing "1-milligram tar" segment, the company introduced "Mild Seven One Menthol 100's Box" and "Cabin One 100's Box". "isit? Box" and "isit? Menthol Box" are new products being marketed with a "casual" concept. "Siesta" will be re-launched as a 5-milligram tar product and "Peace Smooth Aroma Box" will now be the lowest 6-milligram tar product in the Peace brand family with charcoal filters.

JT integrated the domestic sales and marketing of JTI's 24 products, including the three global flagship brands (GFBs), Camel, Winston, and Salem, into its domestic tobacco operations in May 2005 to make better use of its global brands as part of its competitive and new product strategies. On this occasion JT is launching four new products from the integrated JTI product portfolio in the Camel, Winston, and Pianissimo brand families.

JT continues to launch a record number of products in its efforts to regain market share, particularly since the company's licensing agreement with Marlboro expired at the end of April 2005. In addition, the Japanese tobacco market, because of its competitiveness, has proven itself to be a good testing ground for products that may one day make it into the international market, like Lucia did in November, 2004, in Russia. Considering this, JT will continue to launch products from both domestic and global brands with the hope that the new products will one day become a major contributor to the group's top-line growth strategy around the world.

"Thanks to the launch of these 13 new products and the renowned brands in our international portfolio, we will cut into Marlboro's market share," said Yasumasa Matsunaga, JT senior executive vice president, who heads the Product Group of JT's Tobacco Business. "This is a major step in the right direction and we're going to plow ahead with solid growth in market share."

Each of the new products announced today will be sold in prefectures that differ from product to product. In this market entry phase, each product will be assessed, and if successful, its sales area will be expanded further regionally or nationwide.

Background on "D-spec" Reduced odor Segment
The eleven reduced odor products including "Bevel Fina Shine Berry," "Pianissimo Pêche Menthol One," "Mild Seven Prime Slim Three," and "Seven Stars Revo Super Lights Box," incorporate JT's technology, which allows the company to offer cigarettes with reduced odor in response to consumer demands for a reduction in the unpleasant smell of smoke.

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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 4.664 trillion in the fiscal year ended March 31, 2005.