BAT FILES PROPOSED CORRECTIVE STATEMENTS

October 18, 2006 1:56 am by Gene Borio

1. There are adverse health effects from cigarette smoking. For a list of health effects from smoking and a discussion of the relevant science, see the 2004 Report of the Surgeon General “The Health Consequences of Smoking.”

2. Cigarette smoking and nicotine are addictive.

3. There is no significant health benefit from smoking “low tar,” “light,” “ultra light,” “mild,” or “natural,” cigarettes.

4. BATCo manipulates the design of its cigarette brands to ensure that every cigarette of a particular brand or style will deliver the amount of nicotine (within 0.1 mg.) advertised for that brand, according to the test for nicotine in cigarette smoke adopted by the International Standards Organization.

5. There are adverse health effects from exposure to second hand smoke (also known as environmental tobacco smoke or ETS). For a list of health effects and a discussion of the relevant science, see the 2006 Report of the Surgeon General “The Health Consequences of Involuntary Exposure to Tobacco Smoke.”

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Text follows of:

BAT Proposed Corrective Statements October 16, 2006

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NY3 - 423672.01 UNITED STATES DISTRICT COURT DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA,

Plaintiff,

-against-

PHILIP MORRIS USA, INC., et al., Defendants.

99 Civ No. 02496 (GK)

No court appearance scheduled

SUBMISSION OF BRITISH AMERICAN TOBACCO (INVESTMENTS) LIMITED (”BATCo”) PURSUANT TO ORDER #1015, II.B, 5

On August 17, 2006, the Court issued Order #1015 which requires “[e]ach Defendant to make separate corrective statements concerning each of the following: (a) the adverse health effects of smoking; (b) the addictiveness of smoking and nicotine; (c) the lack of any significant health benefit from smoking ‘low tar,’ ‘light,’ ‘ultra light,’ ‘mild,’ and ‘natural,’ cigarettes; (d) Defendants’ manipulation of cigarette design and composition to ensure optimum nicotine delivery; and (e) the adverse health effects of exposure to secondhand smoke (also known as environmental tobacco smoke, or ETS).” Order #1015, II.B, 5. Order #1015 also requires the parties “[w]ithin sixty days of the date of this Final Judgment and Remedial Order [to] each submit a proposal for the exact wording of such corrective statements, with any supporting materials deemed necessary.” Id.

2

Pursuant to Order #1015, II.B, 5, British American Tobacco (Investments) Limited (”BATCo”) makes the following submission: 1

1. There are adverse health effects from cigarette smoking. For a list of health effects from smoking and a discussion of the relevant science, see the 2004 Report of the Surgeon General “The Health Consequences of Smoking.”

2. Cigarette smoking and nicotine are addictive.

3. There is no significant health benefit from smoking “low tar,” “light,” “ultra light,” “mild,” or “natural,” cigarettes.

4. BATCo manipulates the design of its cigarette brands to ensure that every cigarette of a particular brand or style will deliver the amount of nicotine (within 0.1 mg.) advertised for that brand, according to the test for nicotine in cigarette smoke adopted by the International Standards Organization.

5. There are adverse health effects from exposure to second hand smoke (also known as environmental tobacco smoke or ETS). For a list of health effects and a discussion of the relevant science, see the 2006 Report of the Surgeon General “The Health Consequences of Involuntary Exposure to Tobacco Smoke.”

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1 BATCo makes this submission subject to and without waiving any of its rights to challenge the Court’s Final Judgment and Remedial Order.

3

Dated: October 16, 2006

New York, New York

Respectfully submitted,

CHADBOURNE & PARKE LLP

By /s/

Bruce G. Sheffler

A Member of the Firm

Attorneys for British American Tobacco

(Investments) Limited

30 Rockefeller Plaza

New York, New York 10112

(212) 408-5100

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