Honda - Equity Stake in BAR

British American Tobacco PLC
19 November 2004



                      Honda to take equity stake in B.A.R



British American Tobacco said today that Honda plans to strengthen its
involvement in British American Racing (B.A.R) by becoming an equity partner for
the first time. Honda is already an engine supplier under a new three year
contract, chassis development partner, and sponsor.



The announcement follows the Lucky Strike B.A.R Honda team's most successful
season to date, in which it achieved second place in the FIA Formula One
Constructors' World Championship, and underlines the determination to win the
world championship.



British American Tobacco will own 55 per cent and Honda Motor Co., Ltd. 45 per
cent of a new joint venture company which is planned to replace the existing
B.A.R ownership structure.



Antonio Monteiro de Castro, Chief Operating Officer of British American Tobacco
and a director of B.A.R, said: "We're delighted Honda wants to build on its
involvement in a team that has gone from strength to strength this season."



Takanobu Ito, Managing Director of Honda Motor Co., Ltd., commented: "This is a
natural extension of our relationship with B.A.R and is an important step for
both partners. The new commitment will further strengthen the structure for
cooperation with B.A.R as we push forward with our Formula One challenge."



British American Tobacco owns approximately 90 per cent of B.A.R (Holdings)
Limited and hopes to secure the minority shareholders' co-operation in the
restructuring.



If that co-operation cannot be obtained, British American Tobacco will seek the
appointment of administrators to the holding company.   The new joint venture
company then expects to acquire, from the administrator, the shares in British
American Racing GP Limited which operates the team and which is the holding
company's principal asset.



The day-to-day activities of the team will not be affected by this process.



B.A.R is making a separate announcement today about the planned joint venture.




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