Tokyo, February 10, 2009 --- Japan Tobacco Inc. (JT) (TSE: 2914) in alignment with its ongoing commitment to environmental conservation, today announced the company's plans for its seventh afforestation project since 2005. The five-year project marks the company's first in collaboration with the regional government in Kyushu, and will focus on conservation efforts involving 118 hectares of forest in the town of Yunomae, located in the southeastern region of Kumamoto Prefecture. JT is the first company to undergo a project of this kind under the official guidelines set out by the Kumamoto Prefecture for forest conservation initiatives.

The project site is owned by the town of Yunomae, and is part of Okukuma Kumamoto Prefectural Natural Park, which holds three main functions: the area acts as a watershed for the local community; prevents sediment discharge; and provides a place for visitors to enjoy nature and wildlife. Downstream form the site, there are three irrigation reservoirs that provide the main water source for Yumomae's agriculture, which includes the cultivation of rice, leaf tobacco, strawberries and tomatoes. The forest is comprised of Japanese cedar and Japanese cypress trees, and the project's major focus is on the conservation and thinning of the trees, and also involves the planting of deciduous fruit trees. Through the project, the company aims to ensure the future of sustainable resources and ecosystems for the local residents and wildlife indigenous to the area, including Japanese deer and the Japanese dormouse, and encourage the coexistence between the environment and industry.

JT aims to continue providing enjoyment and relaxation through products from its three business segments, including tobacco, pharmaceutical, and foods. In doing so, the company recognizes that a number of raw natural resources are consumed in the production process, including tobacco leaves, paper (pulp), vegetables and tea leaves. JT is grateful for the natural resources that the industry has been provided, and as a socially responsible corporate citizen, is fully committed to the continued creation and conservation of natural resources in order to ensure a better eco-environment for future generations, and the company's afforestation efforts are evidence of this strong commitment.

Annex: JT%27s initiatives for environmental conservation

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Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Winston, Camel, Mild Seven and Benson & Hedges. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 6.409 trillion in the fiscal year ended March 31, 2008.