Amer and Philip Morris renew licensing agreement

Amer Tobacco Ltd and Philip Morris Products Inc. have renewed their licensing agreement. The agreement, valid until year-end 2005, will continue thereafter by mutual agreement. The contents of the agreement remain otherwise unchanged. The agreement covers the production of Philip Morris cigarette brands, e.g. Marlboro, L&M and Belmont, for the Finnish market. In addition, products are manufactured for tax-free markets and Sweden. The previous, temporary agreement was scheduled to expire at year-end 2001.

Amer Tobacco and Philip Morris' licensing co-operation began in 1961. Over the years Philip Morris products have become the most popular cigarettes in Finland with a dominant market share that totalled 76% in 1999.

The only cigarette manufacturer in Finland, Amer Tobacco had net sales of EUR 94 million in the 1999 financial year. The company paid a total of EUR 510 million in excise and value-added taxes to the state last year. Amer Tobacco has a factory employing 350 people in Tuusula, Finland.

AMER GROUP PLC
Communications Department

Marja-Leena Simola
Vice President, Communications

Tel. +358 9 7257 8306
Fax +358 9 791 385
E-mail marja-leena.simola@amer.fi

For further information, please contact:

Mr. Roger Talermo, President & CEO, Tel. +358 9 725 78 210
Mr. Jukka Ant-Wuorinen, President, Tel. +358 9 273 0369