Press Release

FOR IMMEDIATE RELEASE

Notice of Stock Split: Five-for-One Stock Split

Tokyo, February 27, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that its board of directors decided to split the company's shares at the board of directors meeting which was held on February 27, 2006, as described below.

1.	Purpose of Stock Split
		To create an environment where investors can more easily invest in the company's shares, the company intends to complete a stock split. The company also aims to expand the company's shareholder base by lowering its price per share.

2.	Details of the Stock Split
	a)	Method of Stock Split
			Each share of common stock held by shareholders listed or recorded on the final register of shareholders and the final register of beneficial shareholders as of March 31, 2006 (Friday) will be split into FIVE shares.
	b)	Number of shares to increase as a result of the stock split
			Number of issued shares before the stock split:	2,000,000
			Number of shares to be increased by the stock split:	8,000,000
			Number of issued shares after the stock split:	10,000,000

3.	Schedule
		Record date for the stock split:		March 31, 2006 (Friday)
		Effective date:		April 1, 2006 (Saturday)
		*	Shareholders who use "Central Securities Custody and Book-Entry Transfer System" will see an increase in their balances as of April 1, 2006 .
		Issue date:		May 19, 2006 (Friday)

4.	Commencement Date for Calculation of Dividends: April 1, 2006 (Saturday)

5.	Number of Authorized Shares
		The company's board of directors also made a decision today to increase the number of shares authorized which is described in the company's Articles of Incorporation, in accordance with Article 218, Paragraph 2 of the Commercial Code. According to the stock split, the total number of shares authorized will be increased by 32,000,000 shares to 40,000,000 shares as of April 1, 2006 , from 8,000,000 shares. This is subject to approval by the Ministry of Finance, in accordance with the Japan Tobacco Inc. Law.

Reference
	*	There will be no increase in the amount of "Common Stock" to adjust for the stock split. Common Stock as of February 27, 2006: JPY 100,000,000,000
	*	The shares possessed before this stock split, effective on April 1, 2006 , will be eligible for year-end dividends for the fiscal year ending March 31, 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 4.664 trillion in the fiscal year ended March 31, 2005.