Press Release

FOR IMMEDIATE RELEASE

Tobacco Council Releases Findings for 2009 Tobacco Cultivation

Tokyo, November 12, 2008 --- 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 2009.

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 2009, the domestic tobacco cultivation area will be set at 16,110 hectares. The leaf tobacco grower price will be increased 3.52 percent from the previous year and set at an average of JPY 1,910.52 per kilogram for all leaf types.

JT will proceed with operations in 2009 based on the Council's determinations.

Cultivation area for each type of leaf tobacco in 2009

Units: Hectares

	Contracted cultivation area in 2008	Agreed cultivation area for 2009	Difference
Domestic type leaf tobacco	143	136	-7
Burley type leaf tobacco	5,131	4,910	-221
Flue-cured type leaf tobacco	11,656	11,064	-592
Total	16,931	16,110	-821

About The Leaf Tobacco Deliberative Council

The Leaf Tobacco Deliberative Council is an eleven-member advisory body comprised of domestic tobacco grower representatives and independent experts, with the approval of the Minister of Finance, that provides counsel to JT's president. The Council was established under Article 7 of the Tobacco Business Law to discuss plans for cultivation of leaf tobacco in Japan, including grower price and the area set aside for different leaf types. The Council's determinations are incorporated into JT's annual domestic tobacco contract.

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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 6.409 trillion in the fiscal year ended March 31, 2008.