FOR IMMEDIATE RELEASE

Tokyo August 8, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) announced today that in alignment with its commitment to environmental conservation, the company began its fourth afforestation project in the Chizu area in Tottori Prefecture. JT, the Tottori prefectural government and the town of Chizu have formed a joint partnership for forest conservation in “Tottori Kyosei-no-Mori,” a local governmental program which coordinates forest conservation efforts between CSR-conscious companies and Tottori Prefecture. JT is the sixth company to support the program and will contribute to 23 hectares of forest conservation in the Chizu area. This marks JT's fourth afforestation project in Japan, following three previous projects (located in Tanabe City in Wakayama Prefecture, Kosuge-mura in Yamanashi Prefecture, and Nahari-cho in Kochi Prefecture).

At the end of August 2007, JT will implement its five-year plan of thinning and cultivating trees in an effort to recover the forest in the Chizu area. The forest plays an important role in providing a secure source of water for the surrounding ecosystem, and as such, the initiative contributes not only to forest's sustainable growth, but also to the area's natural reserve. Also, a viewing platform supplied with a deck and benches, in addition to a small lodge, will be produced by the thinned wood taken from the forest, and be provided for local residents. Daily forest conservation is entrusted to the Chizu forest owners' cooperative, and JT will invite participants, including JT employees working in the company's Okayama branch and their families along with local residents, to assist in the project.

JT aims to continue providing enjoyment and relaxation through its products in their three business segments, including tobacco, pharmaceuticals and foods. In those businesses, the company consumes a number of natural resources and raw materials, including tobacco leaves, paper (pulp), tea leaves, fruits and vegetables, etc. in the production of its various products. Taking this into account, JT, as a socially responsible company, is committed to the continued creation and the conservation of natural resources in order to ensure a better eco-environment for future generations, and the company's afforestation projects are evidence of this commitment.