ITC Ltd.

British American Tobacco PLC
30 August 2002

                                    ITC Ltd


We are aware of heightened speculation in the Indian media concerning the
possible sale of UTI's stake in ITC Ltd. to British American Tobacco.  Although
we would not normally comment on market rumours, in this case we have been asked
by our Associate Company, ITC, to clarify our intentions to avoid speculative
trading in ITC stock.

We confirm that we have not approached UTI, either directly or through
intermediaries or third parties, with a view to purchasing their shares in ITC.
Any third party purporting to represent British American Tobacco is unauthorised
to do so. We also confirm that we have not received any approach from UTI.

We are aware of the Indian Government's restrictions on foreign ownership of
tobacco companies.  We support ITC's strategy and its management and are
comfortable with our current shareholding in ITC.



Enquiries:

Investor Relations:
Ralph Edmondson
Tel: [phone]

Press Office:
Dave Betteridge, Ann Tradigo, Sarah Corbey
Tel:  [phone]




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