FOR IMMEDIATE RELEASE

Tokyo, September 11, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that it would launch five new cigarette products - "Camel Menthol Box," "Salem Ice Blue," "Cabin One Tasty 100's Box," "Peace Infinity," and "Sakura(*1)" - at the beginning of October, 2006, in conjunction with the sales area expansion of "Bevel Fina Shine Berry," which has been going through the test-marketing process since July 1, 2005.

All of the six brands are either in the significantly growing "1-milligram tar," "menthol," or "320 yen or above" segment and five of the six brands are "D-spec," or reduced odor products, which JT has been committed to expanding. With four new D-spec products and one D-spec product receiving sales expansion, 11 D-spec products will be available nationwide and another 3 D-spec products will be available in limited sales areas. Furthermore, "Sakura" will be launched in Milan in October as a test-market for the reduced odor category in the overseas market following the test market of "LUCIA," launched in Russia on November 1, 2004.

In the current medium-term management plan, JT2008, JT stated that the company will, as part of its top-line growth strategies, effectively launch new products within growing segments and improve unit prices by developing and launching value-added products as exemplified by "D-spec." Due to stronger demand, the total market share of the D-spec products was 4.12 percent in the first quarter that ended June 30, 2006, up 1.19 percent, compared to the same period of last year. This shows that D-spec products have made solid in-roads into the market.

"D-spec," reduced odor segment products (known as Less Smoke Smell products abroad), incorporate the company's odor-reducing technology in response to consumer demands for the reduction in the unpleasant smell of smoke. After six years of research and development efforts, JT introduced this new and innovative technology to mask the unpleasant odors.

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 to regional sales.

Product names	Integrated JTI brands	D-spec	Growing Segments			Price (Yen)	Sales area
			1mg Tar	Menthol	320 yen or above
Camel Menthol Box	X	X		X	X	320	Miyagi
Salem Ice Blue	X	X		X	X	320	Fukuoka
Sakura		X			X	350	Kanagawa
Peace Infinity		X			X	350	Kyoto
Bevel Fina Shine Berry		X			X	320	Niigata Aichi
Cabin One Tasty 100’s Box			X			300	42 prefectures

Appendix:
Profile of New Products

***

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.