FOR IMMEDIATE RELEASE

Tokyo, February 13, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, at the beginning of March 2007, it would expand the sales area for its “Camel Menthol Box,“ which has been in the test-marketing phase since October 2006, to nationwide coverage in response to increased consumer demand.

The Camel brand was first introduced in the United States in 1913, and was the first to adopt the “American blend“ method, which has since become the most widely used method of tobacco blending for cigarettes. JT acquired the rights to the brand, outside of the United States, through the acquisition of RJ Reynolds International in 1999. Since then, JT International (JTI), JT’s international tobacco business subsidiary, has continued wide-range efforts to strengthen Camel’s brand equity, such as through the rejuvenation of the brand with the introduction of a new, globally consistent taste and packaging design in 2002. The brand remains a powerful international brand, ranking No.2 in sales volume throughout Western Europe in 2005.

With respect to Japan’s domestic market, JTI products had been distributed independently. However, following the discontinuation of JT’s licensing agreement with Philip Morris International Inc. to sell the Marlboro brand in Japan at the end of April 2005, all JTI products being sold in Japan, including Camel, Winston and Salem (Global Flagship Brands [GFB(*1)]) were transferred to JT’s domestic tobacco business. Since then, JT has been making efforts to reinforce Camel’s brand equity as a premium brand in the Japan market.

The “Camel Menthol Box“ is the first Camel product, developed by JT exclusively for the Japan market, to be expanded nationwide. The product has been developed based on JT’s extensive knowledge and understanding of the Japanese market, while preserving the brand’s distinct and traditional characteristics. In addition, the new product has adopted JT’s “D-spec(*2)“ technology. “D-spec,“ reduced odor segment products (known as Less Smoke Smell products abroad), incorporate the company’s odor-reducing technology developed in response to consumer demands for the reduction of unpleasant smell of smoke. By utilizing JT’s “D-spec“ technology and vast distribution channels, JT is committed to enhancing Camel’s brand equity in the Japanese market, which will reinforce the company’s brand portfolio.

Profile of New Product [Camel Menthol Box]

Price:		320 yen / 20 cigarettes
Tar / Nicotine:		8mg / 0.7mg
Sales Areas:		From October 2, 2006: Miyagi Prefecture (launch) From March 1, 2007: Nationwide
(*1) GFB: Global Flagship Brands include Camel, Winston, Mild Seven and Salem. (*2) Following six years of research and development, JT introduced its original D-Spec technology to mask the unpleasant odors in response to consumer demand in 2003. The company has received a very favorable response by consumers regarding the characteristics of D-spec products such as reduced smoke smell in clothes and hair.

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