Brooke Group increases cash dividend to $1.00 Annually; Grants Shareholders Additional 5% Annual Stock Dividend.

MIAMI--(BUSINESS WIRE)--Sept. 13, 1999--

Brooke Group Ltd. (NYSE: BGL) today announced that its Board of Directors has voted to increase the Company's quarterly cash dividend on its common stock from $0.075 per share to $0.25 per share. Additionally, the Company is implementing a new, annual stock dividend of 5%. Both the quarterly cash and the annual stock dividends are payable on September 30, 1999 to holders of record as of September 24, 1999.

The Company attributed the dividend increases to the improving performance and enhanced prospects of its Liggett Group and Liggett-Ducat subsidiaries. The Company intends to review the dividend payout on a semi-annual basis, subject to the ongoing reduction of debt and the Company's debt covenants.

Bennett S. LeBow, chairman and chief executive officer of Brooke Group, said, "We're pleased that the Company is in a position to reward its stockholders by significantly increasing the dividend. We believe that we've only just begun to see the effects of the Company's turnaround and we're optimistic about the prospects for continued margin expansion and improved profitability going forward."

Brooke is a holding company which owns Liggett Group Inc. and controlling interests in Liggett-Ducat Ltd. and New Valley Corporation.