FOR IMMEDIATE RELEASE
Tokyo, March 23, 2011

Effect of the Tohoku District–off the Pacific Ocean Earthquake
on the JT Group (Second Report)

Japan Tobacco Inc. (JT) (TSE: 2914) would like to express first and foremost our deepest
sympathies to all those who have been affected by the Tohoku District-off the Pacific Ocean
Earthquake. We hope that recovery will proceed quickly.

On March 11, JT has established a Crisis Management Headquarters, headed by our CEO, which is
undertaking recovery support, information collection and evaluation of countermeasures.
Subsequent to our March 14 announcement, the following is the company’s update on damage that
has been confirmed so far and on the current product supply situation.

1. Damage

A) Human Suffering
We have been unable to confirm safety of three JT Group employees. We are continuing our
effort to confirm their safety.

B) Business Operation
Damage to facilities of our Japanese Domestic Tobacco Business and our current efforts are
outlined as follows.

 Sales Offices
While Morioka, Sendai, Mito and Utsunomiya Sales Offices have recovered their
functions, three offices which report to these Sales Offices, namely Kamaishi,
Ishinomaki and Iwaki, are not functioning. Further, we have now set up a temporary
order processing center in Tokyo in lieu of the Sendai Order Processing Center which
is not functioning because of its damaged building.

 Distribution Depots
Although distribution depots in Aomori, Morioka and Utsunomiya that belong to TS
Network Co., Ltd., our group company, have repaired the damage to their buildings,
two depots located in Sendai and Mito are not functioning following damage to their
buildings. These depots are nevertheless all being affected by the deteriorating
distribution conditions.

 Cigarette Manufacturing Factories
Kita-Kanto Factory, located in Utsunomiya, and Koriyama Factory are not functioning,
because of damaged buildings and equipment.

 Semi-Finished Product Factories
Tomobe Factory located in Kasama which produces expanded tobacco and the
East-Japan Regional Leaf Tobacco Headquarters, located in Sukagawa, a producer of
cut rolled expanded stems, are not operating, because of damaged buildings and
equipment. Production of expanded tobacco is being replaced by Hiratsuka Factory,
while alternative sourcing from outside Japan is currently planned. Sourcing of cut
rolled expanded stems from outside Japan is also being planned.

 Non-Tobacco-Material Factory
Entry into Tagajo Factory which belongs to Japan Filter Technology, Ltd., our group
company, is not allowed following the earthquake. Alternative production in the
company’s other factories located in Hamura, Tokyo; Tsubata, Ishikawa; and Tagawa,
Fukuoka is now in preparation.

Recovery at Kita-Kanto Factory is affected by scheduled blackouts. Further, while
there is no damage, scheduled blackouts are affecting the operation of Hiratsuka Factory
and Japan Filter Technology, Ltd.’s Hamura Factory. Although Fuji Flavor Co., Ltd.,
our group company, is located in an area affected by blackouts, the operation is not
disrupted because the company has its own electrical power facility.

2. Product Supply

Since the earthquake, our Japanese Domestic Tobacco Business has been doing everything we
can to secure product supply. However, transportation of our products has been affected by the
current fuel shortages and deteriorating distribution conditions. As a result, in certain places in
Japan, our products are now out of stock.

In the meantime, transportation of semi-finished products and non-tobacco-materials are being
affected by the deteriorated distribution conditions. Also, some of our suppliers of non-tobacco
materials are being affected by damaged facilities and scheduled blackouts that are hampering
stable supply for the time being. Further, we are projecting that the manufacture of some of our
products will be disrupted, given the required recovery timeframe for some of the factories of
our group which have been damaged. In light of the circumstances, we are now exploring
alternative sourcing of semi-finished products and non-tobacco materials, and evaluating our
stable product supply system to minimize the effect of the earthquake. Further announcements
will be made as soon as decision on these measures have been made.

We very much appreciate the understanding of our valued consumer and customer.

3. Effect on Performance

An announcement will be made immediately when the earthquake’s damage to the JT Group will be
more clearly known to us and if its impact on our performance is projected to be significant.

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Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in
over 120 countries and its internationally recognized cigarette brands include Winston, Camel,
Mild Seven and Benson & Hedges. With diversified operations, JT is also actively present in
pharmaceuticals and foods. The company’s adjusted net sales excluding tax were ¥1.980 trillion
(US$21.3 billion*) in the fiscal year ended March 31, 2010.
*Translated at the rate of ¥93.04 per $1, as of March 31, 2010

Contact: Hideyuki Yamamoto, General Manager
Media and Investor Relations Division
Japan Tobacco Inc.
Tokyo: +81-3-5572-4292
E-mail: jt.media.relations@jt.com