FOR IMMEDIATE RELEASE

Tokyo, May 31, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) today announced the launch of “Mild Seven Aqua Menthol Super Lights Box,” scheduled for release nationwide in Japan in July 2007. This year marks the 30th anniversary of Mild Seven, and in celebration of this occasion, JT has announced that it would enhance the brand equity of Mild Seven, focusing on quality, value and strengthening sales to ensure the continued success, as the most beloved brand in Japan for years to come.

“Mild Seven Aqua Menthol Super Lights Box” is being introduced as the newest member of the Mild Seven family, and was developed to provide consumers with Mild Seven's popular smooth taste with a cool, refreshing menthol flavor. Menthol products represent a growing segment in the domestic cigarette market, and JT is taking advantage of this opportunity to increase its market share in the segment. The company believes that the introduction of an excellent menthol product into the market would contribute to, and strengthen, the already established Mild Seven brand and its product portfolio.

Mild Seven was first introduced in Japan in 1977, and has continued to dominate over all other brands domestically. Mild Seven products accounted for three of the five leading products by sales volume in Japan during the last fiscal year, with the brand's total market share representing 31.6 percent. With the addition of “Mild Seven Aqua Menthol Super Lights Box,” the Mild Seven brand family will consist of 19 different products - all of which have been developed to meet the wide range of consumer needs and preferences - including D-spec(*1) technology, product packaging (soft and hard packs), product size, and levels of tar.

In addition to the high sales in the domestic market, JT has been investing in Mild Seven as an international premium brand for the global market, and the brand has seen much success in Taiwan and Russia. Globally, the Mild Seven brand has been positioned as the second best-selling brand in the world(*2).

(*1)“D-spec,” reduced odor segment products (known as Less Smoke Smell product abroad), incorporate the company's odor-reducing technology developed in response to customer demands for a reduction in the unpleasant smell of smoke.
(*2)Source: The Maxwell Report “Top World Cigarette Market Leaders 2005”

New Product Profile: Mild Seven Aqua Menthol Super Lights Box

Price:	300 yen/ 20 Cigarettes
Tar / Nicotine:	6mg / 0.5mg
Sales Areas:	Nationwide in Japan from July 2007

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