Disposal

British American Tobacco PLC
30 July 2004

                             Sale of Etinera S.p.A.

British American Tobacco has agreed to sell Etinera S.p.A., the distribution
business of its Italian subsidiary BAT Italia (formerly state-owned Ente
Tabacchi Italiani), for €590 million in cash.

Compania de Distribucion Integral Logista S.A. will acquire a 96 per cent stake
and Axiter Investments S.L. the remaining four per cent.

Logista is a specialist distributor of tobacco and other products in Spain and
Portugal and is 57 per cent owned by tobacco company Altadis S.A.  Axiter is an
affiliate of Confcommercio, Italy's largest trade association.

The transaction is subject to approval from the Italian Government and
competition authorities and receipt of satisfactory tax clearance.  Completion
is anticipated in the fourth quarter of this year.

Paul Adams, British American Tobacco's Chief Executive, said: "This transaction
is a sensible solution for all concerned in the Italian tobacco industry.

"It allows BAT Italia to focus on developing its portfolio of international and
local brands and avoid possible restructuring costs at Etinera.  Also, the new
owners are committed to improving productivity, sharing the benefit with all
tobacco manufacturers.  The transaction will enhance Group earnings per share as
a result of not having to restructure Etinera in the event of a withdrawal of
business by Philip Morris International."

At 30 September 2003, Etinera had net assets of €57 million.  At the same date
Etinera had net cash of €373 million from which a €38 million dividend was paid
to ETI in December 2003.  Earnings before interest, taxes, amortisation and
depreciation were €60 million and interest income was €16 million for the year
to 30 September 2003.

British American Tobacco won the auction to acquire ETI for €2.325 billion
(GBP1.6 billion) in July last year.  The transaction was approved by the Italian
Competition Authority and was completed on 23 December.

                                   ENQUIRIES



British American Tobacco Press Office            Investor Relations
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