Appeal of OFT Decision

Imperial Tobacco Group Confirms Appeal of Office of Fair Trading ("OFT") Decision

Following today's earlier announcement, Imperial Tobacco Group has now received the OFT's Decision to fine the Company for allegedly restricting competition and confirms it will appeal the Decision to the Competition Appeal Tribunal (the "CAT"). Imperial Tobacco takes compliance with competition law very seriously and continues to reject any suggestion that it acted in breach of the Competition Act or in any way contrary to the interests of its consumers.

Imperial Tobacco looks forward to the appeal hearing, given that this will be the first time in the course of a seven year investigation that the allegations made by the OFT will be reviewed by an independent tribunal. As part of its appeal, Imperial Tobacco will request the CAT to quash the proposed fine in its entirety.

The OFT's Decision relates to certain promotional arrangements that Imperial Tobacco had entered into with multiple retailers prior to August 2003. Imperial Tobacco categorically denies that these promotional arrangements had the purpose or effect of restricting competition.

The purpose of these arrangements was to encourage our brands to be priced competitively and that the promotional discounts given to retailers were passed on to consumers in the form of lower retail prices. Far from being anti-competitive, these arrangements were pro-competitive and to the benefit of consumers. Retailers remained free to set their own prices.

Enquiries

Simon Evans (Group Press Officer) Telephone: +44 (0) 117 933 7375

Gerry Gallagher (Director of Investor Communications) Telephone: +44 (0) 117 933 7014

John Nelson-Smith (Investor Relations Manager) Telephone: +44 (0) 117 933 7032

Copies of our announcements are available on our website: www.imperial-tobacco.com