Chile Minority Share Offer

British American Tobacco PLC
27 July 2006




      British American Tobacco offers to acquire minority shareholdings in
                                  Chiletabacos


Inversiones Precis Limitada S.A., a wholly-owned subsidiary of British American
Tobacco, intends to make an offer to acquire the 29.63 per cent of the shares in
Chiletabacos S.A. that British American Tobacco does not already control for CLP
5,000 per share in cash.

The offer will value the total minority shareholding at approximately CLP 104
billion (GBP 104 million). The offer will represent a premium of 33.3 per cent
over the closing share price of Chiletabacos on 26 July.

For British American Tobacco the transaction is expected to be earnings per
share enhancing, cash accretive and will simplify the local capital structure.
It also demonstrates a long-term commitment to, and confidence in Chile.  The
transaction will be funded from the Group's existing resources.


Separately, and in line with the announcement already made by Souza Cruz,
British American Tobacco confirms that it has, from time to time, analysed the
possibility of making a public offer for the 25 per cent of shares in its
Brazilian subsidiary Souza Cruz that it does not already own but does not
currently intend to make such an offer.


                                   ENQUIRIES


British American Tobacco Press Office
David Betteridge / Teresa La Thangue / Catherine Armstrong
[phone]



Investor Relations
Ralph Edmondson / Rachael Cummins
[phone] or 1519



Notes to editors



Chiletabacos is the largest tobacco company in Chile, selling approximately 13
billion cigarette sticks per annum.  For the year ended 31 December 2005, it
reported earnings per share of CLP 354.4, net income was CLP 24.8 billion and
shareholder equity CLP 45.6 billion. For more information please visit
www.chiletabacos.com.



British American Tobacco is being advised by Deutsche Bank.








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