FOR IMMEDIATE RELEASE
Tokyo, March 25, 2011

Effect of the Tohoku-Pacific Ocean Earthquake
On the JT Group (Third Report)
Near-Term Product Supply System of the Japanese Domestic Tobacco Business

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-Pacific Ocean Earthquake. We
hope that recovery will proceed quickly.

As a temporary measure for the purpose of securing stable product supply in the Japanese Domestic
Tobacco Business, JT announced its decision to temporarily limit the number of products the
company supplies, focusing on key products. We sincerely apologize for any inconvenience and
trouble this temporary measure may cause to our customers and consumers.

As the company announced on March 14 and March 23, transportation of semi-finished products
and non-tobacco-materials is now being affected by deteriorated distribution conditions. Also, our
non-tobacco-material suppliers are being affected by damaged facilities and scheduled blackouts
following the earthquake. In addition, we are projecting that some of the factories of our group
which have been damaged will require some time for their functions to recover. Therefore, if the
situation is left unattended, we predict some products will be out of stock, unexpectedly affecting
various products and places, at different times.

For the purpose of avoiding the instability and uncertainty of our supply conditions and reducing
inconveniences to consumers, we have decided, as a temporary measure, to limit the number of
products supplied, focusing on 25 key products from the factories located in western half of Japan.
We will be stabilizing and securing our product supply through optimized manufacturing of quality
products and inventory repletion.

Specifically, we will be temporarily withholding product shipments between March 30 and April 10,
2011, during which time the manufacturing in factories and the inventories of key products will be
increased for product delivery to resume gradually from April 11, starting with several products.
We are projecting we will be able to ship out the 25 key products in mid-May.

We very much appreciate your understanding as we continue to do everything we can to normalize
our supply system as quickly as possible, aiming for complete recovery at the earliest possible time,
including the recovery of damaged facilities. We will continue to update the progress.

While the effects of damage and this temporary measure following the earthquake have not been
confirmed, an announcement will be made immediately if the impact on our performance is
projected to be significant.

###

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.

* Adjusted net sales excluding tax on a consolidated basis do not include revenue from the imported
tobacco, domestic duty free, the China Division and other peripheral businesses in the Japanese
domestic tobacco business. Nor does it include revenue from distribution, leaf tobacco, private label,
contract manufacturing and other peripheral businesses in the international tobacco business.
**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

List of our Key Products

Product Name Price
Mild Seven 410
Mild Seven Box 410
Mild Seven Lights 410
Mild Seven Super Lights 410
Mild Seven Extra Lights 410
Mild Seven One 410
Mild Seven One Box 410
Mild Seven One 100’s Box 410
Mild Seven D-SPEC Super Lights Box 410
Mild Seven D-SPEC One 100’s Box 410
Mild Seven Impact One 100’s Box 410
Mild Seven Aqua Menthol Super Lights Box 410
Mild Seven Aqua Menthol One 100’s Box 410
Seven Stars 440
Seven Stars Box 440
Seven Stars Deep Menthol Box 440
Caster Mild 410
Caster One 100’s Box 410
Hi-Lite 410
Hi-Lite Menthol 410
Cabin Mild Box 410
Hope(10) 220
Peace Lights Box 440
Echo 240
Wakaba 250

*Of the 97 products which we have on sale, the above 25 products cover approximately 65 percent
of our consumer base according to the shipment volume of February, 2011.