Cost Lowering Program

British American Tobacco PLC
21 September 2000



The following announcement was made yesterday, Wednesday, 20th September 2000,
by Brown & Williamson:

                          BROWN & WILLIAMSON ANNOUNCES

                           COST-LOWERING INITIATIVES

LOUISVILLE, KY - Brown & Williamson Tobacco Corporation informed its employees
today that the company will begin a major cost-lowering program that includes
reductions to staff.

'These actions, while difficult, will ensure our future financial health, allow
us to remain a viable competitor and help us grow the business,' said Nick
Brookes, chairman and chief executive officer of the company. The actions, he
said, come in the face of declining market performance brought on by the
implementation of the settlement agreement with the states, increased legal
costs and intensified competition.

Actions being taken by the company will sharpen its focus on the U.S. business
and result in significant reductions in infrastructure costs. The restructuring
also will provide more visibility for the company's businesses in Japan and
Korea.

B&W will offer a special early retirement package to eligible salaried employees
at its headquarters facility in Louisville, at its facility in Macon, Ga., and
to the company's trade marketing sales staff throughout the country.

No decisions have been made regarding the Macon hourly workforce.

The company said involuntary separations also will be considered, but those
numbers would be minimized by early retirements and attrition.

Since signing the master settlement agreement with the states' attorneys general
in late 1998, Brown & Williamson has lost more than 3 percent of market share.
Much of that comes from consumers switching from B&W brands to less expensive
products offered by small manufacturers not subject to payments to the states,
from significant growth of the 'gray market,' and a more restrictive retail
environment.

'We are optimistic about our future prospects,' Brookes said. 'We think we
have the products consumers want. We are taking these steps to provide us with
greater flexibility to compete more aggressively in what has become the most
competitive marketplace in the world. We remain fully committed to our business
in the United States.

Based in Louisville, Ky., Brown & Williamson Tobacco Corporation is the nation's
third-largest manufacturer and marketer of tobacco products.  The company's
major brands include KOOL, Lucky Strike, GPC, Misty, Capri, Carlton, Barclay,
Viceroy and Pall Mall.

For more information, visit brownandwilliamson.com

Enquiries:

Investor Relations
Ralph Edmondson  Tel: [phone]
Denise Hart      Tel: [phone]

British American Tobacco Press Office
Fran Morrison, Dave Betteridge, Jody Humble, Scott Hailstone
Tel: [phone]