FOR IMMEDIATE RELEASE

Tokyo, June 29, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that it would globally introduce the Mild Seven "Blue Wind" symbol that was successfully launched in Japan in 2003. The symbol on the Mild Seven packages, one of the JT group's Global Flagship Brands¹ and the world's second best-selling cigarette brand, will be phased in, over time, in each market. The packaging is characterized by a graphic symbol called "Blue Wind," which was originally placed on Mild Seven brand cigarettes before being extended to most of the brand family in March 2004 in the domestic market.

Since the launch of the new package design, Mild Seven's market share in Japan has rebounded, from 32.5 percent in the fiscal year that ended March 2003 to 32.9 percent in the year that ended March 2005. This initiative revitalized the 28-year-old Mild Seven brand in Japan with an eye-catching graphic that helped to modernize the brand while setting it apart from competitors. The company today believes that the international launch of the "Blue Wind" packaging will enhance the brand's consistency around the world.

Mild Seven products with the "Blue Wind" design will appear in the Taiwan market in July, in the Korean, Malaysian and Hong Kong / Macau markets in August, in the Singaporean, Thailand and Russian markets in September, and in the mainland China market in December. The other 13 markets² , where JT group companies directly sell Mild Seven cigarettes, will also receive the new packaging.

"If the increase in Mild Seven's market share in Japan is any indication, we expect that the "Blue Wind" packaging, once introduced globally, will have a positive impact on our Mild Seven performance around the world," said Yasumasa Matsunaga, JT Senior Executive Vice President, who heads the Product Group of JT's Tobacco Business. "This was a much-needed change, and we look forward to seeing how the revitalized Mild Seven brand acquires additional customer base in our overseas markets."

¹ Global Flagship Brands = Camel, Winston, Mild Seven and Salem.
² Products in the Mild Seven brand family are distributed in over 40 countries globally.

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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.