FOR IMMEDIATE RELEASE

Tokyo, January 22, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) announced today that it would expand the sales area for its “Mild Seven Super Lights 100’s Box,” which was launched in December 2006 within a limited sales area, to nationwide coverage beginning in February 2007.

The decision was made in response to strong consumer demand for the “Mild Seven Super Lights” product in the extra-long 100 millimeter length (previously available only in the standard 85 millimeter length). “Mild Seven Super Lights” represented the best-selling product by sales volume in the Japan market in the last fiscal year. JT believes that introducing “Mild Seven Super Lights 100’s Box” nationwide will reinforce its brand portfolio and secure Mild Seven’s position as the No.1 brand in the domestic market.

JT’s domestic tobacco business has been performing as the core source of profit for the JT Group, generating more than 70 percent of the total operating income in the fiscal year ended March 31, 2006. According to a survey conducted by the Tobacco Institute of Japan, the Mild Seven brand family accounted for four of the five leading products by sales volume in the Japan market and the brand’s total market share represented 32.2 percent in the last fiscal year. In addition to the high sales in the domestic market, JT has been investing in the Mild Seven brand as an international premium brand for the global market, and in Taiwan and Russia, the brand has been achieving grate success. The Mild Seven brand has been bolstering a significant competitive position as the second best-selling brand by sales volume in the world.

This year marks the 30th anniversary of Mild Seven, which after 13 months of its initial introduction into the market in 1977, has continued to dominate over all other brands. JT has been committed to enhancement of Mild Seven’s brand equity in the Japan market, introducing the new packaging designs for nine major products in Mild Seven brand family in December 2006. With the addition of “Mild Seven Super Lights 100’s Box,” the Mild Seven brand family will consist of 20 different products – all developed to meet the wide range of consumer needs, incorporating D-spec(*1) technology, with varied product packaging (soft and hard packaging), product size/length, and amount of tar. By ensuring the satisfaction of its customers and stakeholders, JT aims for the continued success of Mild Seven as the most beloved brand in the domestic market for years to come.

(*1) “D-spec,” reduced odor segment products (known as Less Smoke Smell Product in abroad), incorporate the company’s odor-reducing technology in response to customer demands for a reduction in the unpleasant smell of smoke.


Profile of New Product

[Mild Seven Super Lights 100’s Box]
Price:		300 yen / 20 Cigarettes
Tar / Nicotine:		6mg / 0.5mg
Sales Areas:		From December 1, 2006: Hokkaido Prefecture (launch) From February 1, 2007: Nationwide Expansion

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