FOR IMMEDIATE RELEASE

Tokyo, October 30, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today the re-designing of the packaging for its major 9 brands(*1) in the Mild Seven family in Japan, including "Mild Seven," "Mild Seven Lights" and "Mild Seven Super Lights" -- the top-three best-selling cigarette brands in the Japan market. The newly designed package will preserve the Mild Seven "Blue Wind" symbol and are scheduled to be released in Japan in December 2006.

In line with the company's medium-term management plan "JT2008," JT has been proceeding with their planned improvements to the value of its core brands such as Mild Seven brand. The decision to revamp the Mild Seven package design was made to enhance its brand equity, and secure Mild Seven's position as the No.1 brand in the domestic market, prior to its 30th anniversary in June 2007.

Mild Seven was launched in 1977 in Japan. After only 13 months from the launch, the Mild Seven brand became the top cigarette brand in the domestic market, and has since dominated over all other brands. Mild Seven accounted for about 32 percent of the market share in fiscal year ending March 2006, suggesting that one in three smokers in Japan choose the Mild Seven brand. JT is committed to further improvements to the Mild Seven brand equity and product quality, to ensure the continued satisfaction of its customers and all its stakeholders.

*1.The major 9 brands = "Mild Seven," "Mild Seven lights," "Mild Seven Super lights," "Mild Seven Extra Lights," "Mild Seven One," "Mild Seven One Box," "Mild Seven One 100's Box," "Mild Seven One Menthol Box," "Mild Seven One Menthol 100's Box"

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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.