Response to DTI

British American Tobacco PLC
26 March 2004

                        Response to DTI inquiry outcome



British American Tobacco today welcomed the statement by the Department of Trade
& Industry that its confidential investigation into allegations of involvement
in tobacco smuggling is complete, that no evidence of illegal activity was found
and no further action is to be taken.


Martin Broughton, the Group's Chairman, said: "We've always maintained that our
companies have acted legally and are delighted to see this matter at an end
after more than three years of investigation.


"We work actively with governments and customs and excise authorities around the
world to help them eliminate smuggling - which at its root is caused by tax
differentials, weak border controls and import restrictions or bans."




ENQUIRIES

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




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