Factory Closure Proposal

British American Tobacco PLC
01 June 2006



          British American Tobacco announces factory closure proposal



British American Tobacco today said that its operating company in the
Netherlands has announced that it is to initiate consultations on a proposal to
cease manufacture at its factory in Zevenaar and transfer production to Germany
and Poland.


Subject to consultation, the factory will close during 2008, with a loss of some
570 jobs.  Today's announcement has come as a result of a review into the
sustainability of the Zevenaar site, following the strategic decision by British
American Tobacco's Europe Region to concentrate EU manufacturing investment in
its plants in Germany and Poland. Consultation with the works council will
commence within the next few days.


The Zevenaar factory manufactures cigarettes for the Netherlands and markets
across Europe.


Jan Withag, Managing Director, British American Tobacco Manufacturing B.V. said:
"We regret this conclusion, but it is unavoidable.  We are grateful to our
employees for their commitment and loyalty during what has been a difficult
period, and we will actively support them in securing new futures."


Today's announcement would create a restructuring charge of approximately €235
million (of which some €175 million would be cash), the majority of which is
likely to be charged in 2006.  Annual savings, once full benefits have been
realised, would be approximately €40 million.


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British American Tobacco Press Office        Investor Relations
David Betteridge/Teresa La Thangue /         Ralph Edmondson/Rachael Cummins
Catherine Armstrong
[phone] (24 hours)              [phone] or 1519







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