FOR IMMEDIATE RELEASE

Tokyo, April 7, 2006 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that the company will grant scholarships to 10 self-financed students from Asian countries as part of the company's 2006 Asian Scholarship Program.

Aiming to contribute to human resource development in Asian countries, the "JT Asian Scholarship Program" was established in 1998 to offer financial support to Asian students. Through this program, self-financed Asian graduate school or doctoral course students who are nominated by universities and colleges selected by JT around the Tokyo metropolitan area, will receive JPY 150,000 each month for up to two years.

Each year JT invites application for scholarship and a total of 81 students from eight Asian countries have been awarded scholarships since 1998 and up through the 2005 program. In this ninth round of the scholarship program, 10 overseas students (seven males and three females) from China, Korea and Indonesia will receive scholarships.

To deepen their understandings about the Japanese culture and history, the company also offers several opportunities to experience Japan including participating in traditional tea ceremony and sight-seeing at Japanese historical heritage sites among other places.

This scholarship program is yet another initiative in the company's continued efforts to support and give back to the community which has also included providing financial support to a number of NPO activities, and afforestation programs conducted in partnership with local governments.

Appendix:
Number of scholarships provided to students by country

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Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Camel, Winston, Mild Seven and Salem. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 4.664 trillion in the fiscal year ended March 31, 2005.