Press Release

FOR IMMEDIATE RELEASE

JT to Begin Selling "Sobranie," "Memphis" and "Arôma Vanille"
in Japan Market Following Gallaher Acquisition

Tokyo, October 5, 2007 - Japan Tobacco Inc. (JT) (TSE: 2914) today announced that beginning April 1, 2008, the company would take control of the importing and distribution of its "Sobranie," "Memphis" and "Arôma Vanille" brands in the Japan market, which at present consist of 14 different products obtained through the acquisition of Gallaher.

The three brands are currently being imported and sold in the Japan market by T. Akiyama & Co. and Mountains Inc. However, both companies' involvement with these brands will cease on March 31, 2008. Beginning April 1, 2008, JT will be responsible for the importing and distribution of these brands in Japan.

Current Product Information:

As of September 2007

Distributor	Products	Tar / Nicotine	Price
T. Akiyama & Co.	Sobranie Black Russian 100's	10mg / 0.8mg	750 yen / 20 cigarettes
	Sobranie White Russian 100's	9mg / 0.8mg	750 yen / 20 cigarettes
	Sobranie Cocktail 100's	9mg / 0.8mg	750 yen / 20 cigarettes
	Sobranie Citrus	5mg / 0.5mg	320 yen / 20 cigarettes
	Sobranie Mints	5mg / 0.5mg	320 yen / 20 cigarettes
	Sobranie Mints 1	1mg / 0.1mg	320 yen / 20 cigarettes
	Sobranie Pinks	5mg / 0.5mg	320 yen / 20 cigarettes
	Sobranie Pinks 1	1mg / 0.1mg	320 yen / 20 cigarettes
	Sobranie Cappuccino	5mg / 0.5mg	320 yen / 20 cigarettes
	Sobranie Vanilla Menthol	5mg / 0.5mg	320 yen / 20 cigarettes
Mountains Inc.	Arôme Vanille	4mg / 0.3mg	320 yen / 20 cigarettes
	Memphis Air-Blue 3	3mg / 0.3mg	300 yen / 20 cigarettes
	Memphis Blue	7mg / 0.5mg	300 yen / 20 cigarettes
	Memphis Green	7mg / 0.5mg	300 yen / 20 cigarettes

Company Information:

T. Akiyama & Co.
	Principal Place of Business: Osaki New City No.4, 1-6-4 Osaki, Shinagawa-ku, Tokyo Name of Representative: President, Yutaka Akiyama

Mountains Inc.
	Principal Place of Business: 2-18-1 Yayoi-cho, Naka-ku, Yokohama Name of Representative: President, Kosuke Yamazaki

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Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Winston, Camel, Mild Seven and Benson & Hedges. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 4.769 trillion in the fiscal year ended March 31, 2007.