Press Release

FOR IMMEDIATE RELEASE

Tobacco Council Releases Findings for 2008 Tobacco Cultivation

Tokyo, November 7, 2007 --- The Leaf Tobacco Deliberative Council, chaired by Masayuki Takahashi, released this afternoon its agreed annual findings for domestic leaf tobacco cultivation area and grower prices for 2008.

Japan Tobacco Inc. (JT) (TSE: 2914) had submitted its proposal to the Council earlier in the day.

The Council was in general agreement with JT's proposal, and determined that in 2008, the domestic tobacco cultivation area will be set at 17,101 hectares, while the leaf tobacco grower price will be set at an average of JPY 1,845.59 per kilogram for all leaf types.

JT will proceed with operations in 2008 based on the Council's determinations.

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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.