FOR IMMEDIATE RELEASE

Tokyo, October 10, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today the launch of "Smokers' style AKIHABARA," a new smoking space developed in collaboration with the Chiyoda Ward, opening on October 16, 2006.

"Smokers' style AKIHABARA," located at Akihabara Station's east exit, is just one of a number of initiatives JT is exploring in collaboration with local governments to provide public smoking spaces to encourage the harmonious co-existence of smokers and non-smokers. JT applies the knowledge and expertise of the company into the development of its "Smokers' style" smoking spaces in an effort to provide visitors with a comfortable and relaxing space to enjoy smoking. Visitors may utilize the new 40-square-meter "Smokers' style AKIHABARA" from 7:00 a.m. to 10:00 p.m. free of charge. In addition, public restrooms are made available by the Chiyoda Ward.

JT uses the term "Smokers' style" to express its wish that its customers will continue to enjoy smoking to the fullest, while showing consideration to those around them, so that smokers and non-smokers can more easily co-exist. To this end, the company is making efforts in many areas as a responsible manufacturer of cigarette products.

Akihabara is one of the busiest business and shopping centers in the Chiyoda Ward, attracting large crowds daily. Since the ward's issuance of an ordinance in October 2002 prohibiting smoking and cigarette littering on the public streets in the area, the ward office has received numerous requests from local patrons and commuters to establish a smoking space in Akihabara. JT, together with the Chiyoda Ward, have acknowledged the importance of providing designated smoking spaces for the public in order to improve smoker etiquette and reduce incidences of smoking and cigarette littering on the busy streets. This new partnership will serve as a trial for JT to pursue future collaborations with the Chiyoda Ward and explore further initiatives in this field.

JT previously operated a smoking space in Akihabara from March 2003 to February 2006. It was well-received and attracted a total of 2.1 million visitors during its operation, recording an average of 6,000 daily visitors on weekends and 4,000 daily visitors on weekdays. Despite positive feedback from visitors, the smoking space was closed as a result of the closing of the property that housed the space.

To date, JT has established 241 smoking spaces throughout Japan in conjunction with 37 local governments. In addition, the company had introduced 23 smoking spaces, predominantly in major railway stations and airports, at the end of March 2006. JT has also offered its expertise and counsel to introduce separate smoking spaces in public areas; such instances account for 475 occasions.

Appendix:
About Smokers' style AKIHABARA

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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.