Japan Tobacco International annual report January - December 2008..

February 11, 2009 - Japan Tobacco International (JTI), Japan Tobacco, Inc's international business operations, increased its sales volume by 17.3% to 452.3 billion cigarettes compared to the previous year. Gallaher results have been incorporated as of April 18, 2007. Global Flagship Brands (GFBs) volume increased 20.8 percent to 245.5 billion cigarettes compared to the previous year. (There are eight GFBs - three of the top five worldwide cigarette brands – Winston, Mild Seven and Camel, also Benson & Hedges and Silk Cut – two leading Virginia brands; the prestigious Sobranie of London; Glamour – the fastest-growing Super Slims brand; and our international value brand LD.)

Total sales volume for Winston grew by 13.8 percent due to robust sales mainly in Russia, Turkey, Ukraine, Spain, France, Italy and the Near East. Total sales volume for Canada rose 10.3 percent supported by strong sales in Italy, Russia and Spain and total sales volume for Mild Seven increased 11.4 percent during the period with gains in Korea, Taiwan, Russia and Malaysia. GFB performance also reflected the additional contribution of Benson & Hedges and Silk Cut in the United Kingdom and Ireland and LD, Sobranie and Glamour in Russia, Kazakhstan and Ukraine.

JTI also has a portfolio of brands which are marketed regionally to complement our GFBs. These include Coronas, Ducat, Export A, Magna, Mayfair, Memphis, Mi-Ne, Monte Carlo, More, Peter I, Ronson, Russian Style, Salem, Sovereign, St George, Troika, Winchester plus many more. JTI is a significant player in the Other Tobacco Products (OTP) arena, with Hamlet cigars, Old Holborn and Amber Leaf Roll Your Own tobacco, and Gustavus Snus (Swedish-style smokeless tobacco).

Reference: JT Reports International Tobacco Business Results January - December 2008, 2/9/2009.