FOR IMMEDIATE RELEASE

Tokyo, October 29, 2007 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today the launch of “Mild Seven D-spec Super Lights Box” scheduled for nationwide release in December 2007, in response to increased customer demand for D-spec products within JT's core Mild Seven line, which this year celebrates it's 30th anniversary.

Mild Seven was first introduced in Japan on June 1, 1977, and within two years became the No.1 brand in the Japanese domestic market. Mild Seven has since kept its leading brand position in the Japanese market, and is currently positioned as the third-best selling tobacco brand in the world(*1). The company has introduced a wide range of the Mild Seven products in order to meet a variety of consumer preferences and demands, including in levels of tar, the introduction of menthol line and limited edition package designs.

“Mild Seven D-spec Super Lights Box” is a “D-spec” reduced odor product (known as Less Smoke Smell products abroad), which incorporates the company's odor-reducing technology developed in response to customer demands for the reduction in the unpleasant smell of smoke. In the domestic market, JT has been focused on strengthening the Mild Seven brand and D-spec segment. The new product applies the D-spec technology while maintaining Mild Seven's popular smooth and clear taste that is most beloved by smokers in Japan, and JT is confident that the introduction will contribute to enhancing the company's existing product portfolio.

“We are proud to be applying our innovative D-Spec technology to our No.1 brand ‘Mild Seven.’ This initiative will contribute to enhancing the brand's overall equity and further evolving Mild Seven's product capabilities, and will be instrumental in gaining brand share in Japan's highly competitive domestic market,” said Yoshihisa Fujisaki, Senior Vice President and Head of JT's Brand General Division. “We aim to increase JT's domestic market share by building up the equity of the Mild Seven brand through the introduction of such value added products.”

With the launch of “Mild Seven D-spec Super Lights Box,” there will be a total of 20 Mild Seven products available nationwide, and 19 D-spec products in the Japanese market (with 14 products available nationwide and five in limited sales areas).

(*1) Source: The Maxwell Report “Top World Cigarette Market Leaders 2006”

Profile of New Products
Mild Seven D-spec Super Lights Box

Price: 300 yen / 20 cigarettes Tar / Nicotine: 6mg / 0.5mg Sales Area: Nationwide