Richemont and Rembrandt Group - Share Redemption

British American Tobacco PLC
6 March 2000


The following announcement has been made by Richemont:

    Richemont and Rembrandt Group to redeem further preference shares
                       in British American Tobacco

R & R Holdings SA, the holding company owned jointly by Richemont and
Rembrandt Group Limited, has served notice on British American Tobacco
of its intention to redeem a second tranche of 60.4 million BAT
preference shares in June 2000 at a price of £5.75 per share.  This
represents one quarter of the total preference shares held by R & R
Holdings SA and has an aggregate redemption value of £347 million.

In aggregate, R & R Holdings SA has now served notice on British
American Tobacco in respect of one half of its holding of preference
shares.  The remaining preference shares will be compulsorily redeemed
in cash in June 2004 at a price of £6.75 per share, unless previously
converted to ordinary shares upon a sale by R & R Holdings to a third
party.

Richemont's share of the aggregate proceeds of the exercise of the 120.8
million preference shares in June 2000 will amount to £463 million.

Background information

As a result of the merger of Rothmans International and British American
Tobacco which was completed in June 1999, Richemont and Rembrandt Group
Limited, through R & R Holdings SA, hold a 35% equity interest in the
enlarged BAT.  This shareholding comprises a 25% interest in ordinary
shares and a 10% interest in the form of 241.7 million convertible
redeemable participating preference shares.  R & R Holdings SA is held
as to two thirds by Richemont and one third by Rembrandt.  As provided
for in the merger agreement, up to half of the preference shares may be
redeemed for cash in June 2000, the first anniversary of completion of
the transaction, at a price of £5.75 per share, subject to certain
notice requirements.

On 2 December 1999 R & R Holdings SA served notice on British American
Tobacco in respect of the first tranche of preference shares eligible
for redemption in June 2000.  That notice related to one quarter of the
preference shares, being 60.4 million shares with an aggregate
redemption value of £347 million.

Further enquiries:

Johann Rupert, Chief Executive
Jan du Plessis, Finance Director
Tel:  [phone]