American Brands announces trading on New York Stock Exchange in connection with Gallaher spin-off and name change.

OLD GREENWICH, Conn.--(BUSINESS WIRE)--May 29, 1997--American Brands, Inc. (NYSE-AMB) today announced the expected trading alternatives for its Common stock on the New York Stock Exchange in connection with the impending change in its name to Fortune Brands, Inc. (NYSE- FO) and spin-off of its wholly-owned subsidiary, Gallaher Group Plc.

As previously announced, Friday, May 30, 1997 has been set as the record and payment date for the spin-off. Each United States and Canadian holder of American Brands Common stock will receive one American Depositary Share (ADS) of Gallaher Group Plc for each share of Common stock held. Each ADS represents four ordinary shares of Gallaher Group. All other holders of American Brands Common stock will receive four ordinary shares of Gallaher Group for each share of Common stock held.

Trades made on the NYSE from May 27 through May 30, 1997 in American Brands Common stock "Regular Way" (AMB) will carry Due- Bills representing the right to receive the ADSs of Gallaher Group to be issued in connection with the spin-off. These Due-Bills will be redeemed on June 4, 1997.

In addition to trading American Brands "Regular Way" (with Due-Bills), it will also be possible to make trades in American Brands Common stock "Ex-Distribution" - "When Issued" (AMB WI) on Friday, May 30, 1997. This alternative provides a method to separately trade American Brands Common stock without the right to receive the Gallaher Group ADSs (which is the equivalent of Fortune Brands). Gallaher Group ADSs (NYSE-GLH) will trade "Regular Way" on the New York Stock Exchange commencing May 30, 1997.

The Common stock of Fortune Brands (the renamed American Brands) will begin trading on June 2, 1997 under the symbol "FO".

CONTACT: American Brands, Inc., Old Greenwich

Media Relations: Investor Relations:

Roger W. W. Baker Daniel A. Conforti

[phone] [phone]