FOR IMMEDIATE RELEASEJT to Expand Another "D-spec" Product to Nationwide SalesTokyo, October 13, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, on November 1, 2005, the company would expand the sales area of ''Pianissimo Pêche Menthol One,'' which was launched in July 2005 within a limited sales area, to nationwide sales after results in the test market warranted the expansion only four months since the product's launch. ''Pianissimo Pêche Menthol One'' was developed for the first time by JT as an extension of the Pianissimo brand family for the domestic market, after this brand family was integrated into JT's product portfolio in the Japan market in May 2005. The product belongs to four important segments, including the ''1-milligram tar,'' ''menthol,'' ''JPY 300 or above,'' and ''D-spec'' product categories, which have been aggressively marketed by JT since the announcement of ''JT PLAN-V.'' Thus JT has the greatest expectations for the product among the 12 other products launched in the same month. ''Pianissimo Pêche Menthol One'' inherited the taste and flavor of ''Pianissimo One,'' the best selling 1-milligram tar and menthol product in Japan. Since its launch in Miyagi and Yamagata prefectures, the product received high acclaim for its taste and flavor. Furthermore, the product has been widely accepted as part of JT's ''D-spec'' (reduced odor) product category. The product grew to have the highest market share among the three other D-spec products available in Miyagi and Yamagata (0.6 percent as of August 2005 in the current sales area), surpassing JT's initial target of 0.4 percent. Background on ''D-spec'' Reduced Odor Segment ''D-spec,'' reduced odor segment products (known as Less Smoke Smell products abroad), incorporates the company's odor-reducing technology in response to consumer demands for a reduction of the unpleasant smell of smoke. After six years of research and development effort, JT introduced this new and innovative technology to mask the unpleasant odors. And, in its latest medium-term management plan, ''JT PLAN-V,'' JT stated that the company would, as part of its top-line growth strategies, create a new segment -- reduced odor products heralded by ''Lucia Citrus Fresh Menthol.'' Since its announcement, D-spec products have gained solid market share in Japan in line with the expectations laid-out in ''JT PLAN-V.'' JT is currently marketing 11 ''D-spec'' Products in Japan in both nationwide and local sales areas. In addition, with very encouraging results in Japan, ''Lucia Citrus Fresh Menthol'' has since been introduced to the Russian and Korean markets and ''Lucia Citrus Fresh Menthol One'' also being introduced to the Korean market. Profile of Cigarettes Pianissimo Pêche Menthol One
### 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. |
