Stmnt re Brown & Williamson

British American Tobacco PLC
29 September 2000


                     B&W SAYS JUDGE GUTS CLINTON-GORE
                      FEDERAL LAWSUIT AGAINST TOBACCO
                                     
The following is a statement released by British American Tobacco's
subsidiary, Brown & Williamson Tobacco Corporation,  following a District
Court's ruling on the U.S. Federal Government's claim against the tobacco
industry.  In addition to the ruling referred to in the statement, Judge
Kessler dismissed B.A.T Industries plc from the case on the grounds of
lack of personal jurisdiction.
                                     
     LOUSIVILLE, KY - Brown & Williamson Tobacco Corporation said today
that it was obviously pleased that a U.S. District Court has thrown out
key parts of the Clinton-Gore Administration's claims against the tobacco
industry.

     'Based on the legal merits of the case, the Federal court found that
the Clinton-Gore Administration does not have the right it claimed under
statute to recover Medicare costs related to alleged smoking related
illnesses.  So, the only damage claims in this suit are gone,' said Mitch
Neuhauser, attorney for B&W.
     
     The judge declined to dismiss the Administration's claims under the
RICO Statute at this time, stating that it would be premature to rule; but
stating whether the Administration can prove its case 'remains to be
seen.'

     'The RICO claims seeking injunctive relief have no basis given the
way we do business today and our obligations under the MSA.  These claims
are now moot.  The remaining dollar claim involves recovery of past
profits as part of the RICO injunctive relief claim.  We do not believe it
is legally appropriate to recover monetary relief as part of an injunction
claim,' Neuhauser said.

Brown & Williamson Tobacco Corporation is based in Louisville.  Its major
brands include KOOL, Lucky Strike, GPS, Capri and Misty.  For more
information on this issue, visit www.brownandwilliamson.com.

                                    
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British American Tobacco

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