''Mild Seven Impact Menthol Box'' to go on sale across Japan from early March 2012

Strong and clear menthol sensation combined with impactful smoking experience ''Mild Seven Impact Menthol Box'' to go on sale across Japan from early March 2012

Tokyo, February 3, 2012 --- Japan Tobacco Inc. (JT) (TSE: 2914) has announced that its new ''Mild Seven Impact Menthol Box'' will go on sale across Japan from early March 2012. This menthol product features a strong and clear menthol sensation combined with an impactful smoking experience.

Share of menthol products in the cigarette market has been growing(*1) recently and the demand for a strong menthol sensation has gained a particularly high momentum. To meet this demand, JT will be launching a new 5 mg tar product featuring a strong menthol sensation as part of the Mild Seven brand, the most sold brand in Japan(*2), to strengthen our menthol product lineup and to evolve our initiatives toward increased consumer satisfaction.

''Mild Seven Impact Menthol Box'': Strong and clear menthol sensation combined with impactful smoking experience

The ''Mild Seven Impact Menthol Box'' combines ''menthol thread filters'' using threads to which natural menthol has been added and the ''impact blend,'' a leaf tobacco blend offering an impactful experience of smoking without obscuring the menthol sensation, while still maintaining the Mild Seven tradition of smooth cigarettes with a clean finish. Through this combination, the product enables an impactful smoking experience while accentuating the strong and clear menthol sensation. Moreover, the Mild Seven Impact Menthol Box features a longer lasting coolness in the mouth in comparison to JT's other same tar menthol products(*3).

The package, designed with green and white streamlines in the image of the Mild Seven logo against a black background, expresses the product's dynamism and strong, clear menthol sensation.

(*1) and (*2) Internal research
(*3) Results of an internal consumer opinion survey

Product information of the Mild Seven brand as of March 1, 2012
Name Launched Price (Yen) Tar Nicotine
Mild Seven June 1977 410 10mg 0.8mg
Mild Seven Box October 1993 410 10mg 0.8mg
Mild Seven 100's Box June 2009 410 10mg 0.8mg
Mild Seven Lights July 1985 410 8mg 0.7mg
Mild Seven Lights Box October 1994 410 8mg 0.7mg
Mild Seven Lights 100's Box June 2009 410 8mg 0.7mg
Mild Seven Super Lights July 1989 410 6mg 0.5mg
Mild Seven Super Lights Box June 1994 410 6mg 0.5mg
Mild Seven Super Lights 100's Box December 2006 410 6mg 0.5mg
Mild Seven Extra Lights August 1998 410 3mg 0.3mg
Mild Seven Extra Lights Box June 1995 410 3mg 0.3mg
Mild Seven Extra Lights 100's Box June 1996 410 3mg 0.3mg
Mild Seven One March 2003 410 1mg 0.1mg
Mild Seven One Box December 1999 410 1mg 0.1mg
Mild Seven One 100's Box February 1998 410 1mg 0.1mg
Mild Seven Impact One 100's Box May 2008 410 1mg 0.1mg
Mild Seven Impact One Menthol Box February 2010 410 1mg 0.1mg
Mild Seven Aqua Menthol One 100's Box July 2005 410 1mg 0.1mg
Mild Seven Aqua Menthol Super Lights Box July 2007 410 5mg 0.4mg
Mild Seven D-SPEC Super Lights Box December 2007 410 6mg 0.5mg
Mild Seven D-SPEC One 100's Box January 2011 410 1mg 0.1mg
Mild Seven Style Plus One January 2012 410 1mg 0.1mg
Mild Seven Style Plus 6 January 2012 410 6mg 0.5mg
Mild Seven Impact Menthol Box March 2012 410 5mg 0.4mg

###

Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in over 120 countries and its internationally recognized cigarette brands include Winston, Camel, Mild Seven and Benson & Hedges. With diversified operations, JT is also actively present in pharmaceuticals and foods. The company's adjusted net sales(*) were JPY 1.946 trillion (US$23,415 million(**)) in the fiscal year ended March 31, 2011.

* Adjusted net sales on a consolidated basis do not include excise tax and revenue from the imported tobacco, domestic duty free, the China Division and other peripheral businesses in the Japanese domestic tobacco business. Nor does it include excise tax and revenue from distribution, contract manufacturing and other peripheral businesses in the international tobacco business.

** Translated at the rate of JPY 83.15 per $1, as of March 31, 2011