German Tobacco Group Launches World's First Vitamin E Cigarette

German Tobacco Group AG, Frankfurt, will launch the world's first
cigarette brand enhanced with natural vitamin E at Europe's leading
tobacco trade show, Inter-tabac 2007, at Westfalenhallen in Dortmund
(September 21-23, 2007). The international tobacco brand,
S.A.L.E.-Vitamin-E, aims to revolutionize the cigarette market.

American scientists Herbert M. Evans and Katherine S. Bishop
discovered vitamin E, also described as a 'fertility-vitamin' or
'love-vitamin', in 1922.

For decades the fast-moving consumer goods and food industries
have seen enhancement of products through vitamins and other
value-added substances.

This global trend has recently been validated by the major
acquisition of a U.S. company which started producing vitamin enhanced
water through a leading international soft drink giant.

German Tobacco Group AG, a Frankfurt-based tobacco holding and
brand owner of S.A.L.E. was formed in June 2006 and has entered into
an exclusive deal with an American patent owner and inventor of this
revolutionary product innovation.

According to the U.S. patent owner and research firm, the vitamin
E enhanced cigarette features an improved and soothing flavor and also
minimizes the irritation that usually occurs when using conventional
cigarettes.

Thomas Schumann, co-founder and chairman of the board of German
Tobacco Group AG cautions, "This does not mean that S.A.L.E. with
vitamin E is a safer cigarette or offers less exposure to the hazards
of smoking. There is no healthy or safe cigarette. If you do not want
to risk your health you should not smoke."

With its brand S.A.L.E.-Vitamin-E, German Tobacco Group AG is
creating a new, unique product category in the global tobacco market,
which generates annual sales of 400bn USD and is the largest segment
in the fast-moving consumer goods industry.

S.A.L.E. with vitamin E addresses the international trend of
consumers becoming increasingly aware and more responsible when using
tobacco products. The brand is positioned in the dynamic and
high-growth market segment of 'International Value Brands' in Germany
and Europe. The price is 3.50 Euro/17 cigarettes.

According to the brand owner, S.A.L.E. cigarettes currently offer
German retailers the highest margin of all available brands in the
'International Value Segment'.

German Tobacco Group manufactures the S.A.L.E. brand in
Berlin/Brandenburg and clearly supports high quality, 'Made in
Germany' products.

The German cigarette market is Europe's leading tobacco market and
is one of the most stable and lucrative cigarette markets worldwide,
with an annual consumption of 100bn cigarettes. Germany was the
world's number one exporter of cigarettes in 2006 with 3bn USD in
export volume.

Five tax increases in the last three years have prompted German
consumers to buy less expensive cigarettes and tobacco products. This
is a growing trend in Europe.

German Tobacco Group AG is privately held and was formed as a
platform-company with the purpose of acquiring and managing European
cigarette manufacturers. The Group has already targeted two European
companies.

After the conclusion of the acquisitions and their timely
integration, the Frankfurt company plans to list on the Frankfurt
stock exchange in 2008.