JT Acquires Leading E-cigarette Brand E-Lites

Geneva (ots/PRNewswire) -

Japan Tobacco Inc. (JT) announced today that it has concluded an
agreement to acquire all outstanding shares of Zandera Ltd.
("Zandera"), a leader in e-cigarettes and best known for its E-Lites
brand. Founded in 2009, Zandera sells the most recognized range of
high quality rechargeable and ready-to-use e-cigarettes in the United
Kingdom.

"Our investment in Zandera provides the JT Group with an excellent
entry-point into the fast-growing e-cigarette category," commented
Masamichi Terabatake, JTI's (Japan Tobacco International) Executive
Vice President and Deputy CEO. "With E-Lites' well-established brand
and product portfolio, we are able to offer adult consumers another
important extension to our growing range of emerging and innovative
products such as tobacco vapor pods (Ploom)."

The executive management team of Zandera will remain with the JT
Group post-acquisition in order to leverage upon their extensive
knowledge and experience of the e-cigarette industry, their
understanding of the product, technology and regulatory landscape.

"With access to the JT Group's global distribution muscle as well
as their research & development expertise, proven commitment to
quality assurance and vision for emerging products, we look forward
to growing the business and further enhancing E-Lites' product
offering," said Adrian Everett, Zandera's co-founder and CEO.

This transaction will be funded by the Group's existing cash and
loan facilities and is expected to have a minor effect on the Group's
consolidated performance and cash flows for the fiscal year 2014. JT
expects to complete the acquisition in the second quarter of the
fiscal year 2014 following regulatory clearance.

BACKGROUND INFORMATION

Zandera Ltd.

Established: 2009
Headquarters: Bromsgrove, Worcestershire, United
Kingdom
Representative: Adrian Everett
Shareholding: Private, founders
Number of Employees: Approximately 70 as of June 2014
Business description: Sales of electronic cigarettes through
retails and online channels

Brand Portfolio: E-Lites brand of rechargeable
ecigarettes with starter kit and
refills in 3 flavor variants, and
accessories
Company's websites: http://www.e-lites.co.uk

Japan Tobacco Inc. is a leading international tobacco product
company. Its products are sold in over 120 countries and its
internationally recognized brands include Winston, Camel, Mevius and
Benson & Hedges. With diversified operations, JT is also actively
present in pharmaceuticals, beverages and processed foods. The
company's revenue was Yen2.399 trillion (US$23,318 million(*)) in the
fiscal year ended March 31, 2014.

*Translated at the rate of Yen102.92 per $1, as of March 31, 2014

Contact: Ryohei Sugata, General Manager
Media and Investor Relations Division
Japan Tobacco Inc. Tokyo: +81-3-5572-4292
E-mail: jt.media.relations@jt.com

Guy Cote, Vice-President
Media Relations
JTI, Geneva: +41-22-703 0291
E-mail: jti.press.office@jti.com

ots Originaltext: JTI SA
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