Stmnt re Brown & Williamson

British American Tobacco PLC 29 September 2000 B&W SAYS JUDGE GUTS CLINTON-GORE FEDERAL LAWSUIT AGAINST TOBACCO The following is a statement released by British American Tobacco's subsidiary, Brown & Williamson Tobacco Corporation, following a District Court's ruling on the U.S. Federal Government's claim against the tobacco industry. In addition to the ruling referred to in the statement, Judge Kessler dismissed B.A.T Industries plc from the case on the grounds of lack of personal jurisdiction. LOUSIVILLE, KY - Brown & Williamson Tobacco Corporation said today that it was obviously pleased that a U.S. District Court has thrown out key parts of the Clinton-Gore Administration's claims against the tobacco industry. 'Based on the legal merits of the case, the Federal court found that the Clinton-Gore Administration does not have the right it claimed under statute to recover Medicare costs related to alleged smoking related illnesses. So, the only damage claims in this suit are gone,' said Mitch Neuhauser, attorney for B&W. The judge declined to dismiss the Administration's claims under the RICO Statute at this time, stating that it would be premature to rule; but stating whether the Administration can prove its case 'remains to be seen.' 'The RICO claims seeking injunctive relief have no basis given the way we do business today and our obligations under the MSA. These claims are now moot. The remaining dollar claim involves recovery of past profits as part of the RICO injunctive relief claim. We do not believe it is legally appropriate to recover monetary relief as part of an injunction claim,' Neuhauser said. Brown & Williamson Tobacco Corporation is based in Louisville. Its major brands include KOOL, Lucky Strike, GPS, Capri and Misty. For more information on this issue, visit www.brownandwilliamson.com. ENQUIRIES British American Tobacco Investor Relations Press Office Ralph Edmondson Jody Humble +44 (0) 20 7845 1180 +44 (0) 20 7845 2888
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