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Press Release

August 28, 2012

Japan Tobacco Inc.
Torii Pharmaceutical Co., Ltd.
JT and Torii conclude agreement to market novel anti-HIV single-tablet
regimen containing JTK-303 (elvitegravir) in Japan
Tokyo, August 28 2012 ---  Japan Tobacco Inc. (JT) (TSE:2914) and Torii Pharmaceutical Co., Ltd. (Torii) (TSE:4551), JT's pharmaceutical subsidiary, have announced today the conclusion of an agreement to market an anti-HIV single-tablet regimen containing JT's original compound JTK-303 (elvitegravir) in Japan, subsequent to obtaining marketing approval from the country's authorities. JT plans to submit a New Drug Application (NDA) in Japan within this fiscal year ending March 31, 2013. Following Japanese NDA approval, this anti-HIV single-tablet regimen, marketed in the US as StribildTM, will be sold exclusively by Torii in Japan.

The single-tablet regimen contains JTK-303 (elvitegravir), an integrase inhibitor, and in addition, Emtriva® (emtricitabine) and Viread® (tenofovir disoprxil fumarate) which are nucleoside analogue reverse transcriptase inhibitors, as well as cobicistat, a pharmacoenhancing or "boosting" agent that increases blood levels of JTK-303 (elvitegravir). The drug allows for only once-daily and single-tablet dosing, expected to enhance the convenience and long-term compliance of patients.

Currently in the JT Group, Torii has been marketing anti-HIV drugs in Japan including Truvada® Combination Tab., Emtriva® Capsules 200mg, Viread® Tab. 300mg and Viracept® Tab. 250mg. Marketing of the drug in Japan, following approval, would constitute another contribution by JT Group to the treatment of HIV.

Under the terms of the agreement, Torii will pay JT an upfront payment of ¥2.7 billion.

* Stribild, Truvada, Emtriva and Viread are trademarks or registered trademarks of Gilead Sciences, Inc.

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