Caribbean Cigar Reports the Appointment of Three New Directors.

KNOXVILLE, Tenn.--(BUSINESS WIRE)--Oct. 9, 1998--Caribbean Cigar Co. (Nasdaq:CIGR) Friday announced the appointment of Gabriel Ripoll, Thomas Cristiano, and Daniel Daley to serve as new members of the company's board of directors, filling previously empty seats on the board.

Ripoll has been principal officer and director of Tabaqueria de Filipinas Inc., a cigar manufacturing company, since March 1993. Between February 1964, and February 1993, Ripoll was employed in the Philippine branch of Compania General de Tabacos de Filipinas S.A., a Spanish cigar manufacturing company as general manager of their cigar factory, La Flor de la Isabela.

Cristiano has been the principal of Christom Imports & Exports Inc., a manufacturer and importer of handmade tobacco pipes and pipe and tobacco accessories, since 1982.

Daley has been president of S&D Party Enterprises Inc., a retail party goods supplier, since 1993. Daley has also served as president of Party City of TN Inc., a retail party goods supplier, since 1995.

The board of directors also reported the appointment of Daley to its Audit Committee, joining Curtis Zimmerman, who has been a director of the company since January 1998. The board also appointed Messrs. Ripoll, Cristiano and Daley, to serve as its Compensation Committee. As a result of these appointments, both key advisory committees are now staffed by outside board members.

Commenting on the announcement, J.D. Jenkins, chairman and CEO of Caribbean Cigar, stated: "The addition of these three individuals to our board of directors significantly strengthens our management team. Their combined backgrounds in the cigar, tobacco and retail industries, and expertise in manufacturing, distribution and sales, are expected to greatly benefit the company as we continue its turnaround and work to build new growth and profitability."

Caribbean Cigar Co. manufactures and distributes Signature Collection (SC)(tm), Calle Ocho(r), Free Cuba(tm), Celestino Vega(r), Rum Runner(r), West Indies Vanilla and Island Amaretto. The company which was previously based in Miami, recently moved its corporate headquarters to Knoxville and has production facilities in the Dominican Republic.

Statements about the Company's future expectations and all other statements in the press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements.