Result - Turkey Privatisation

British American Tobacco PLC
22 February 2008

               British American Tobacco wins auction for Turkish
                          state tobacco company assets

British American Tobacco today confirmed it has won the auction for the
cigarette business assets of Tekel, the Turkish state-owned tobacco company,
with a bid of US$ 1.72 billion.

The transaction is subject to approval by Turkey's Competition Board and
ratification by the Turkish Privatisation High Council. Signing and completion
are expected later this year.

On completion, the acquisition will elevate British American Tobacco's market
share in Turkey to around 36 per cent from just over 7 per cent today.

The assets principally comprise:

•  the rights to all Tekel's cigarette brands which in 2007 accounted for
   some 32 billion cigarettes sold - approximately 29 per cent of the market

•  six factories, with manufacturing already consolidated onto three sites, one 
   of which is on a short lease, and

•  around two years' stock of tobacco leaf.

British American Tobacco estimates that the assets being acquired generated
earnings before interest, tax, depreciation and amortisation of US$151 million
in 2007.

The asset-only privatisation does not include employees. An announcement on
employment by British American Tobacco is planned nearer to the completion of
the transaction, after dialogue with employees and unions.

Paul Adams, British American Tobacco's Chief Executive, said: "This investment,
coupled with the country's rapid economic growth, will transform our position in
the world's eighth largest cigarette market.

"The strength of Tekel's portfolio combined with our existing brands will
provide a stronger platform for the growth in the market of our international
brands, including Kent, Pall Mall and Vogue."

Annual synergies of around £30 million by the third full year are estimated for
the enlarged business, driven largely by improvements in the supply chain and
savings in administrative costs. To achieve this there will be one-off costs of
up to £50 million in 2008, subject to finalisation of integration plans.
However, significant cash will be realised from working capital improvements and
asset disposals.

The transaction, financed with a committed bank facility, is expected to be
earnings enhancing from 2009 but also to result in a deferred tax charge of
approximately £20 million, affecting adjusted diluted earnings per share in
2008.

Notes to editors

•    Approximately 110 billion cigarettes were consumed in Turkey in 2007 and 
     around 38 per cent of adults smoke.

•    Tekel's leading brands include Tekel 2001 (a 13.7 per cent share in 2007) 
     and Tekel 2000 (a 2.6 per cent share in 2007).

•    The six factory sites comprise: Istanbul (leased), Ballica Samsun and Tokat 
     (all open) and Adana, Malatya and Bitlis (all dormant).

•    British American Tobacco is the world's second largest quoted tobacco
     group by global market share, with brands sold in more than 180 markets.  
     Its subsidiary companies produced some 689 billion cigarettes through 52 
     cigarette factories in 44 countries in 2006 and employed more than 55,000 
     people.

•    British American Tobacco entered the Turkish market in 2002. Its head 
     office is in Istanbul, its principal brands are Viceroy, Pall Mall and Kent 
     and its factory in Tire-Izmir also exports to other markets in the region.

•    British American Tobacco is being advised by Deutsche Bank.


Enquiries

British American Tobacco Press Office
David Betteridge / Kate Matrunola / Cat Armstrong
+ (44) 0 20 7845 2888 (24 hours)

Investor Relations
Ralph Edmondson / Sharon Woodcock
[phone] / 1519

British American Tobacco Turkey, Corporate Affairs
Tuna Turagay   [phone] or [phone]
Elif Boutlu    [phone] or [phone]

Telephone conference call

Chief Executive Paul Adams and Finance Director Paul Rayner will host a
conference call for analysts, institutional investors and UK journalists today.
Dial [phone] (password: BAT) a few minutes before 3pm (UK time).

A replay will be available for 48 hours on [phone], password 886050
# and on the corporate website www.bat.com.


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