JT's Annual Survey Finds 24.9% of Japanese Adults Are Smokers

Tokyo, August 14, 2009--- Japan Tobacco Inc. (JT) (TSE: 2914) today announced the results of its Japan Smoking Rate Survey(*1), a study that has been carried out annually since 1965. The survey, conducted in May 2009, showed that 24.9 percent of Japanese adults are smokers. Other results are summarized below.

(*1)	The results of the survey were announced in October prior to 2009.

Japanese smoking rate as of May 2009

(Unit: Percentages)

	2008	2009	Change since last year (percentage points)
Men	39.5	38.9	-0.6
Women	12.9	11.9	-1.0
Total	25.7	24.9	-0.8

Japanese smoking population as of May 2009 (estimate)

(Unit: millions)

	2008	2009	Change since last year
Men	19.84	19.57	-0.27
Women	6.96	6.44	-0.52
Total	26.80	26.01	-0.79

Note: Figures for the adult population were provided by the Statistics Bureau of the Ministry of Internal Affairs and Communications. In 2008, the total adult population was 104.22 million, including 50.23 million men and 53.99 million women. In 2009, the total adult population was 104.38 million, with 50.30 million men and 54.08 million women.

The company believes that total smoking rate in Japan has been slightly decreasing, as in past years. The reason for the decrease may be affected by various factors, including an aging society, increasing health consciousness, more stringent smoking regulations, and the introduction of cigarette vending machines with age verification functions.

JT will continue its efforts to maximize consumer satisfaction and enhance its initiatives for the coexistence of smokers and non-smokers.

Outline of the 2009 Japan Smoking Rate Survey

The survey was conducted in May 2009 using a stratified two-stage sampling method, mailed to 32,000 adult men and women nationwide. JT collected 20,807 (65.0 percent) valid responses from the total population surveyed.

Sample age ranges

Percentages: Proportion of sample group
Figures below percentages represent the number of valid respondents.

	20-29	30-39	40-49	50-59	60+	Total
Men	17.8% 1,869	15.9% 1,672	16.1% 1,688	16.9% 1,774	33.4% 3,510	100% 10,513
Women	11.7% 1,204	17.5% 1,803	16.9% 1,741	17.6% 1,814	36.3% 3,732	100% 10,294
Total	14.8% 3,073	16.7% 3,475	16.5% 3,429	17.2% 3,588	34.8% 7,242	100% 20,807

20-29

30-39

40-49

50-59

60+

Total

Men

17.8%

1,869

15.9%

1,672

16.1%

1,688

16.9%

1,774

33.4%

3,510

100%

10,513

Women

11.7%

1,204

17.5%

1,803

16.9%

1,741

17.6%

1,814

36.3%

3,732

100%

10,294

Total

14.8%

3,073

16.7%

3,475

16.5%

3,429

17.2%

3,588

34.8%

7,242

100%

20,807

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Japan Tobacco Inc. is one of the leading international manufacturers 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 6.832 trillion in the fiscal year ended March 31, 2009.