Signing of Co-operation agreement

Imperial Tobacco and European Union sign co-operation agreement to jointly combat illicit trade in tobacco

Imperial Tobacco is pleased to announce that it has today signed a co-operation agreement with the European Commission and the Member States of the European Union to jointly combat illicit trade in tobacco.

Under the agreement Imperial Tobacco will work together with the European Commission and the law enforcement authorities of the Member States to tackle the smuggling and counterfeiting of tobacco products. The agreement will strengthen cooperation in a number of areas and includes payments by Imperial Tobacco of US $300 million (EUR 207 million*) over 20 years to fund anti-illicit trade initiatives.

Imperial Tobacco Group Chief Executive, Alison Cooper, said: "Imperial Tobacco initiated this agreement to strengthen joint initiatives to combat the illicit trade in tobacco.

"Illicit trade benefits no one but the criminals involved, adversely affecting governments, consumers, retailers and the legitimate tobacco industry.

"The agreement will enhance anti-illicit trade initiatives across the European Union and underlines our commitment to partner with authorities worldwide in the fight against tobacco smuggling and counterfeiting."

Imperial Tobacco applies stringent controls to its global network of distributors and has a dedicated team of specialists who operate internationally in conjunction with governments and customs and excise authorities on a global scale to disrupt the manufacture and supply of illicit tobacco products.

Notes to Editors

Imperial Tobacco Group is a leading international tobacco company which manufactures, markets, distributes and sells a comprehensive range of cigarettes, tobaccos, cigars, rolling papers and tubes.

*Based on the conversion rate of 12th January 2010, when the Commission and Imperial Tobacco initialled the co-operation agreement.

Enquiries

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

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

Alex Parsons (Head of Corporate Communications) Telephone: +44 (0) 117 933 7241

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