Liggett-Ducat signs Motorola as first tenant for new Moscow office facility.

MOSCOW--(BUSINESS WIRE)--July 17, 1996--Liggett-Ducat Ltd. announced today that it has signed a five year lease agreement with Motorola GmbH for 18,000 square feet of Ducat Place-II, its new American-style office building located in downtown Moscow, near the U.S. Embassy.

Ducat Place-II is currently under construction and is scheduled for completion in early 1997. Upon completion, Ducat Place-II will be a full-service class-A 150,000 square foot office building featuring a four-story atrium lobby, state-of-the-art building systems and fiber-optic telecommunications. Ducat Place-II will have a fitness center, tennis court and restaurant. The building will also have two levels of underground parking and a car wash.

Ducat Place-II is the second phase of Liggett-Ducat's award-winning real estate development. Ducat Place-I, located across the street from Ducat Place-II, houses the Russian headquarters for some of the world's leading financial organizations including Citibank, the European Bank for Reconstruction and Development, Morgan Stanley International and the G-7 Group of Nations. Ducat Place-I was awarded the 1995 FIABCI Prix D'Excellence as one of the best new office buildings in the world. In its award brochure, the FIABCI states, "The project is of tremendous benefit to the development of Russia on one level, and to the immediate neighborhood at another. It is a concrete example of how foreign investment in the country can be successful." Ducat Place-III, a 350,000 square foot mixed use complex, is planned for 1998.

Ducat Place-II was designed by The Leibman-Melting Partnership of New York, a leading American architecture firm in Moscow that also designed Ducat Place-I. Ducat Place-II is being built by Codest Engineering of Italy, a leading foreign contractor operating in Moscow, which has completed over 50 major projects in Russia and the C.I.S. since 1985. The facility is being leased and managed by Hines of Houston, Texas, an international real estate firm responsible for the development and management of more than 150 million square feet of commercial property. Hines is the leasing agent and property manager of the highly successful Park Place project in Moscow.

Liggett-Ducat Ltd. is owned by Brooke Group Ltd. (NYSE: BGL). Liggett-Ducat Ltd. is engaged in the manufacture and marketing of cigarettes and real estate development in Moscow. In addition to its ownership of Liggett-Ducat Ltd., Brooke Group owns Liggett Group Inc., the Durham, North Carolina tobacco company, and a controlling interest in New Valley Corporation.

CONTACT: Liggett-Ducat Ltd.

David Geovanis, 7095/251-1313 (Russian Contact)

or

Sard Verbinnen & Co.

G. Sard/A. Cordasco/ P. Caminiti, 212/687-8080