FOR IMMEDIATE RELEASE

Tokyo, August 30, 2007 ---Japan Tobacco Inc. (JT) (TSE: 2914) announced today it would launch its new green tea beverage "Tsujiri," on September 3, 2007, in collaboration with the distinguished Japanese green tea wholesaler "Tsujiriichi Honten," which has been operating in Uji, Kyoto prefecture since 1860. The hot version of the beverage is scheduled to be launched on October 1, 2007.

The bottled green tea market in Japan has been increasing, from around 5 million kiloliters in 2002, to approximately 6 million kiloliters in 2006(*1). Seventy percent of this market currently is dominated by three major brands, however the company's research has shown that there is still a strong appetite for new green tea products in the market. In order to distinguish its product from others, JT has dedicated itself to producing a classic, high-quality and reliable green tea product. In doing so, JT decided to work in partnership with "Tsujiriichi Honten," which has developed a unique technology to select, blend and produce green tea, refined over a century of experience. JT worked closely with "Tsujiriichi Honten" over the course of one year, calling on the company's expertise in the green tea industry, in the development of the new product.

"Tsujiri" utilizes only domestic green tea leaves, which are supplied from "Tsujiriichi Honten," and selected by the company's official tea blenders. The bottle design depicts a bamboo cylinder, which were traditionally used to store water during the Edo period.

(*1) Research data provided by the Japan Soft Drink Association.

Product Description:

Product name:	Suggested retail price (excluding tax):	Launch date:
Tsujiri per 500 milliliter plastic bottle	JPY 140	September 3, 2007
Tsujiri per 280 milliliter plastic bottle	JPY 115	September 3, 2007
Tsujiri per 2 liter plastic bottle	JPY 330	September 3, 2007
Tsujiri Hot per 275 milliliter plastic bottle	JPY 115	October 1, 2007

About Tsujiriichi Honten:

"Tsujiriichi Honten" was established in 1860, in the well-renowned tea-growing district of Uji, Kyoto prefecture. The era saw the final days of the Tokugawa shogunate, which was also the beginning of a tumultuous social transformation period, and the green tea economy in the Uji area faced turbulent times as well. It was during this recession that Riemon Tsuji, the founder of "Tsujiriichi Honten," invented an ingenious new type of tea case that was small, light, durable and easy to carry-opposed to the traditional large and heavy ceramic pot that was being used at the time. His invention expanded sales of Uji green tea and led in the revival of Uji as the famed tea-growing region that it is known as today.