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Press Release


April 5, 2004

Japan Tobacco Inc.
Torii Pharmaceutical Co., Ltd.
JT and Torii Pharmaceutical to Launch
New HIV Treatment Drug in Japan
Tokyo, April 5, 2004 --- Japan Tobacco Inc. (JT) (TSE: 2914) and Torii Pharmaceutical Co., Ltd. (TSE: 4551), JT's pharmaceutical business subsidiary, announced today that the companies would launch the HIV treatment drug "Viread® Tab. 300mg" (generic name: Tenofovir Disoproxil Fumarate), licensed by Gilead Sciences, Inc. (Gilead) (Nasdaq: GILD), starting April 12 in Japan.

In July 2003, JT signed a licensing agreement with Gilead for the commercialization of Viread®1 in Japan, and the importing approval was obtained from the Ministry of Health, Labour and Welfare on March 25, 2004. Marketing of the new HIV treatment drug will be handled by Torii following the National Health Insurance price listing of the drug on April 2 of this year.

"Viread® Tab. 300mg," which was originally developed by Gilead of California, USA, is a nucleotide reverse transcriptase inhibitor that works by blocking reverse transcriptase, an enzyme that is involved in the replication of HIV. The results of clinical trials, conducted by Gilead, demonstrated that both treatment-naïve patients and treatment-experienced patients with a strain of the virus that is resistant to existing treatment responded well to this drug.

"Viread® Tab. 300mg" is prescribed as one tablet once a day regardless of food intake. The simple regimen is expected to reduce the treatment burden on patients while improving overall adherence.

The drug was approved by the regulatory authorities in the United States in October 2001, and by the authorities in Europe in February 2002, where the drug has since successfully been prescribed for the treatment of HIV patients.

1 In the United States and Europe, the drug is marketed as "Viread®" by Gilead.

Supplement 1. About "Viread® Tab. 300mg"

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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 ¥4.492 trillion in the fiscal year ended March 31, 2003. JT entered into the pharmaceutical business in 1987 and established Central Pharmaceutical Research Institute in 1993. JT is currently engaged in R&D of new drugs in areas such as metabolic disorders, anti-viral applications, immune disorders, and inflammation.

Torii Pharmaceutical Co., Ltd., established in 1921, has manufactured and distributed ethical pharmaceutical products. In 1998, Torii became a member of the JT Group. To maximally leverage the synergy of the Group, R&D functions were transferred to JT and sales and marketing functions were transferred to Torii. Torii and JT continue to operate in close collaboration. Torii's net sales were ¥43 billion in the fiscal year ended March 31, 2003.

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