FOR IMMEDIATE RELEASE

Tokyo, May 26, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced that its amended list prices for its domestic tobacco products have today been approved by the Minister of Finance(*). The new list prices were applied for on May 11 in line with the scheduled increase in tobacco excise taxes that will take effect on July 1, 2006.

JT applied to amend the list prices for 116 products including 115 cigarettes and 1 cut tobacco. The new list prices will take effect beginning July 1 of this year.

Appendix:
Comparison of Current and New Retail Prices

* In Japan, under the Tobacco Business Law, list prices for JT's and imported tobacco products must be approved by the Minister of Finance. Tobacco retailers are only permitted to sell tobacco products at list prices that have been approved by the Minister of Finance.

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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 4.637 trillion in the fiscal year ended March 31, 2006.