UK and Canadian Restructuring

British American Tobacco PLC
18 June 2003


                    UK and Canadian Restructuring Announced

British American Tobacco said today that operating companies in the UK and
Canada have announced proposals to restructure their businesses.

In the UK, it is proposed that the Darlington factory closes by the end of 2004
and cigarette manufacturing be consolidated at the larger Southampton plant -
resulting in the loss of some 490 jobs.

About 90 per cent of output from the two UK factories - including Dunhill, State
Express 555 and Rothmans International brands - is exported outside the European
Union.

However, production volumes have been transferring overseas as a result of an
increasing trend towards local manufacture in key markets including South Korea,
Russia and Nigeria, and relatively higher manufacturing costs in the UK.

The Group's subsidiary Imperial Tobacco Canada plans a major restructure, with
the loss of almost 840 jobs, in order to maintain its leadership position in the
tobacco industry despite a reduction in sales, the steady decline in total
industry volume and the resulting overall industry over-capacity.  The company
makes leading brands such as Player's and du Maurier.

The principal changes, which will occur largely by the end of 2003, include the
closure of its Montreal factory and transfer of production to its other Canadian
facilities, as well as the closure of its leaf threshing operations at Aylmer,
Ontario. Restructuring of Montreal head office will be complete by the end of
2004.

Paul Adams, British American Tobacco's Managing Director, commented: "We very
much regret job losses, especially when our people contribute so much to the
Group's success.  However, we are committed to improving productivity in order
to strengthen our competitive position in the world, deliver profit growth, and
ensure the continued long-term success of the Group."

Appropriate consultation and discussions with employees and trade unions will be
held in both countries.

Today's plans will create an exceptional charge of around GBP 320 million in the
first half of 2003 for redundancies and asset write-downs.  Annualised cost
savings of around GBP 65 million are expected from 2005.



ENQUIRIES

Investor Relations                   Press Office
Ralph Edmondson [phone]  David Betteridge, Ann Tradigo, Sarah Corbey
Rachael Cummins [phone] (0) 20 7845 2888




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