Re Joint Venture

British American Tobacco PLC
16 July 2004

                Approval for Major Strategic Investment in China



British American Tobacco said today that the Central Government of China in
Beijing and the relevant government departments have approved the Group's major
strategic investment in China - the largest tobacco market in the world with
annual sales of around 1,780 billion cigarettes.



The new factory will be established by British American Tobacco in a joint
venture with China Eastern Investments Corporation Limited, and will reach a
manufacturing capacity of 100 billion cigarettes (State Express 555 and other
brands) per year and will be able to distribute and sell British American
Tobacco brands nationally.


Further details of the manufacturing and sales joint venture project, including
its final location and joint venture arrangements will be announced in due
course.



Martin Broughton, recently retired Chairman of British American Tobacco, said: "
I am extremely pleased with the Central's Government's decision to allow British
American Tobacco to significantly expand its involvement in China."



British American Tobacco's Chief Executive Paul Adams confirmed that, "We are
committed to China for the long term.  For us it represents a major growth
opportunity whilst contributing to the Chinese Government's excellent efforts to
continue developing the performance of the country's tobacco industry.  We look
forward, with our partners, to finalising the detailed work in close cooperation
with the Chinese Government."



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