Sale of Genstar Land Company Agreed

British American Tobacco PLC
1 June 2000

                   Sale of Genstar Land Company Agreed
                                    
Imperial Tobacco Canada Limited (formerly Imasco Limited), a wholly
owned subsidiary of British American Tobacco, has entered into an
agreement to sell Genstar Land Company, the United States operations of
its Genstar Division, to Newland-IHP Ventures LLC.  The agreement is
conditional on satisfaction of certain conditions precedent by both
parties

Newland-IHP Ventures is a partnership between Newland Communities,
Institutional  Housing Partners and the California Public Employees'
Retirement System (CalPERS).  The amount receivable at closing, expected
to be in late June, will be US$223 million (C$335 million).

Discussions are under way for the sale of Genstar Development Company,
the Canadian operations of the Genstar Division, which will be the sole
remaining non tobacco business owned by Imasco when it was acquired by
British American Tobacco in February 2000.

Imperial Tobacco Canada was advised by Merrill Lynch & Co.

For further information, please contact:

British American Tobacco
Michael Prideaux Tel: [phone]