FOR IMMEDIATE RELEASE

Tokyo, September 1, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that the company has decided on sixteen prize-winning entries for the "SMOKERS' STYLE COMPETITION 2006." This is the first time JT held a competition of this kind as part of our efforts to involve the community in realizing harmonious coexistence between smokers and non-smokers. JT invited public entry through the company's Web site between April 1 and June 26, 2006 and a total of 935 entrants were involved during the competition. The entries surrounded two themes: ideas which would realize harmonious coexistence of smokers and nonsmokers in public spaces such as offices, commercial facilities, train and bus stations, etc., with the other revolving around examples of construction which help to realize separate smoking and nonsmoking areas.

JT uses the term "SMOKERS' STYLE" to express our wish that our valued customers to enjoy smoking to the fullest while showing consideration to those who do not smoke, so that smokers and non-smokers can more easily coexist. As part of this concept we are continuing to make efforts, in many areas, to fulfill our corporate responsibility to society as a tobacco company.

Mr. Ippei Komatsu won the highest award for his idea named "Control of the smoke by the air current" while Mr. Tetsuo Harada and Mr. Tomoyuki Shirahase of Takenaka Corporation won the highest award for construction with a project called "SMOKING LAYER." Both suggestions were selected as winners because they exemplify the idea of coexistence between smokers and non-smokers without requiring separate smoking space.

The list of winners is as follows:

- Ideas -

Highest Award (Prize Money: JPY 2,000,000)

• Mr. Ippei Komatsu (Freelance)

• Mr. Kotaro Danno and Mr. Shuhei Kamiya
  ( Waseda Architects and Researcher’s Council of Waseda University)

• Ms. Maki Onishi and Ms.Yuki Hyakuda
  (Tokyo University’s Graduate School and Kyoto University’s Graduate School)

• Mr. Hiroshi Katsumata (Japan University’s Graduate School)

• Mr. Ichiro Natsuma, Mr. Kohei Ukai, Mr.Yutaka Nagayama, and Mr.Yasuhiro Ohira (Kobe University’s Graduate School)

• Mr. Naoya Iwama and Mr.Yuta Kanezuka (Tokyo Institute of Technology)

• Ms.Yoko Fukutomi, Ms.Yayoi Omata, Mr. Ichiro Shinkai, and Ms. Maya Matsumoto (Hakusui Publishing Co. Ltd.)

• Mr. Takayuki Furuya (Meiji University)

• Mr.Tetsuo Harada and Mr.Tomoyuki Shirahase  (Takenaka Corporation)

• Mr. Tetsuya Ukai (Tetsuya Ukai Architects)

• Mr. Hirotsugu Yamaguchi, Mr. Nobuaki Miyashita, and Ms. Seiko Tanaka
  (Takenaka Corporation)

• Mr.Yasunori Kamiguchi and Mr. So Iwasaki (Nihon Sekkei, Inc.)

• Mr.Takashi Hanato (Shimizu Corporation)

• Mr. Akira Suzuki, Mr. Syuji Kawakami, Mr. Shinji Nishimura, Mr.Yosuke Sato, Mr. Makoto Ayaki, Mr. Daisuke Arakawa, Mr. Kinichi Kanno, Mr. Yuichi Okamoto, Mr. Masakazu Sano and Mr. Naoki Tani
   (Kanto Shokugyo Noryoku Kaihatsu University)

• Ms. Naoko Ikeda (Toho Leo Co.)

• Mr. Sobun Tada and Mr.Takuma Ohira (Takenaka Corporation)

Appendix:
Highest Award of "SMOKERS' STYLE COMPETITION 2006"

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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.