Investment

British American Tobacco PLC
8 August 2001



                British American Tobacco expands in South Korea



British American Tobacco today announced plans to build a factory in South
Korea, the 8th largest tobacco market in the world with annual sales of 100
billion cigarettes.



The factory, which will take up to three years to construct, at a cost of
around $80 million, will have an initial capacity in excess of 7 billion
cigarettes. The new factory will be built on a 10 hectare site in the Jinsa
Industrial Complex located at Sachon in Gyeoungnamdo Province.



John Taylor, President of British American Tobacco Korea said: 'The key to
growth in South Korea is local manufacture. We already sell Dunhill and have
been in the market since 1988 but market research shows that there is rising
demand for international brands made locally.'



British American Tobacco is the world's most international tobacco group,
operating in some 180 countries.  The group markets a wide range of
international brand names including Lucky Strike, Kent, Dunhill and Pall Mall.





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