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UST ANNOUNCES SALE OF DISTRIBUTION RIGHTS FOR ZIG-ZAG CIGARETTE PAPERS AND RELATED PRODUCTS

 GREENWICH, Conn., April 1 /PRNewswire/ -- UST Inc. (NYSE: UST) announced effective March 31, 1993, the completion of the sale of the distribution rights for Zig-Zag cigarette papers and related products to North Atlantic Trading Company, Inc. for $39 million in cash and additional consideration based on future earnings for the next ten years.
 UST's cigarette paper business represented approximately 3 percent of UST's 1992 consolidated net sales. The divestiture is consistent with UST's strategy to concentrate on the principal products within its core businesses.
 The transaction resulted in an after-tax gain of approximately $22 million or 10 cents per share. This gain will be offset by the net cumulative effect of accounting changes as a result of mandatory adoption in the first quarter of 1993 of State of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," and SFAS No. 109, "Accounting for Income Taxes," of approximately $19 million or 9 cents per share. These transactions will be reflected in the first quarter results for 1993.
 UST, through its subsidiaries, is a leading producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Skoal Long Cut and Skoal Bandits. Other consumer products marketed by UST subsidiaries include premium wines sold nationally through the Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden wineries.
 Copenhagen, Skoal, Skoal Long Cut, Skoal Bandits, Chateau Ste. Michelle, Columbia Crest, Conn Creek and Villa Mt. Eden are registered trademarks of UST subsidiaries.
 -0- 4/1/93
 /CONTACT: Alan Kaiser, 203-622-3549, or David Schutzman, 203-622-3479, both of UST/
 (UST)


CO: UST Inc. ST: Connecticut IN: TOB SU:

TS-PS -- NY066 -- 2041 04/01/93 12:44 EST
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Date:Apr 1, 1993
Words:278
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