Advance Lights -- Reduced Toxin Cigarette -- Launched in Phoenix Test Market.

Business Editors

PHOENIX--(BUSINESS WIRE)--June 15, 2004

The nation's third-largest tobacco company is introducing in the Phoenix metro area Advance(R) Lights, a premium cigarette that delivers the taste of leading lights cigarettes, but with less toxins than other light cigarette brands.

Advance is part of a new category in the tobacco industry known as PREPs -- potentially reduced exposure products.

According to James Figlar, director of applied research for Brown & Williamson Tobacco Corp., "The development of Advance Lights and its introduction in Phoenix reflect the company's ongoing effort to develop new technologies to reduce smoke toxins while maintaining consumer acceptance.

"We are trying to reach the correct balance between potentially reduced exposure products and commercially acceptable products for consumers," Figlar said.

"Advance Lights represent a breakthrough in cigarette technology," he said. "The brand combines two important new technologies to deliver a smooth, rich tobacco taste and reduce the levels of many of the toxins identified by leading public health advocates. Advance substantially lowers levels of many key compounds when compared to conventional lights cigarettes," he said.

Not a "Safer Cigarette"

While Advance Lights has less of many toxins than the leading lights brand styles, the company is warning smokers that it is not a safer cigarette.

"There is no such thing as a safe cigarette," Figlar said. "And we are making it very clear -- smokers concerned about the health risks of smoking should quit. The key is to clearly communicate with consumers. In addition to the regular health warnings about smoking, we are placing a statement in the packs and in our advertising highlighting the fact that less toxins does not mean that Advance is a safer cigarette.

"It will be years before we know if this product can lower the risks of smoking, but we believe it is a step in the right direction," Figlar said.

"We also are focusing on Advance's great taste because that is a critical factor in bringing potentially reduced exposure products to market," he said.

"No matter how low the toxins, a cigarette must taste the way smokers want a cigarette to taste, or they will not choose to adopt it as their brand," he said. "Maintaining a rich taste while reducing toxins is one of the most difficult problems we faced."

According to Figlar, "The technology behind Advance Lights combines a special three-part Trionic(R) filter and an innovative tobacco curing process. The Trionic filter has been in development for more than four years and has a cellulose acetate section, a special carbon compound and an ion exchange resin. Each segment interacts with a different set of compounds. This design decreases the levels of many of the principal toxins found in cigarette smoke without compromising the tobacco flavor."

In addition to the Trionic filter technology, Advance Lights includes flue-cured tobacco using a new, patented process. This new curing process uses a combination of high-temperature and high-speed airflow that inhibits the formation of tobacco-specific nitrosamines (TSNAs), some of which are categorized as carcinogens by leading public health authorities, including the International Agency for Research on Cancer. Advance Lights also contain Oriental and burley tobaccos that are naturally low in TSNAs.

Why Phoenix For A Test Market?

"Phoenix was selected as a test market for Advance because of the diversity of its population, strong economy and a higher adoption of new products and technologies than the national average," said Kevin McDonagh, brand director for the company.

With more than 400,000 adult smokers in the metro Phoenix area, the company will try to raise the level of awareness of the product among adult smokers. "Our message is that this brand is for adult smokers who want a cigarette with great taste, but less toxins," McDonagh said. "This is not a replacement for quitting and it is not a safer cigarette. Advance packs and cartons contain a detailed comparison of Advance toxin levels versus the top selling lights brands. And all marketing materials contain statements that there is no such thing as a safe cigarette," he said.

The Phoenix market introduction includes two brand styles -- Advance Premium Lights Kings Box and Advance Premium Lights 100s Box.

"Advance has shown promising results in early market testing. Advance is being rolled out in Phoenix with the full marketing support we would give a major brand. We expect this to be the next hot trend in the industry," stated McDonagh. "It is vital that we understand how consumers take to Advance to assess the commercial viability of this type of product."

Brown & Williamson Tobacco Corp. is based in Louisville, Ky. The company's other major brands include KOOL, Pall Mall, Lucky Strike, Capri and Misty.

Editors' Note: For additional information and product graphics, logon to the Brown & Williamson Web site and click on the News Media Center, at www.bw.com.