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YET ANOTHER VICTORY AGAINST THE ANTITOBACCO MOBS

STATEMENT FROM BROWN & WILLIAMSON TOBACCO CORPORATION

PR Newswire 05/05 1609

LOUISVILLE, Ky., May 5 /PRNewswire/ -- Brown & Williamson Tobacco Corporation released the following statement regarding a decision by the United States District Court for the Northern District of California, which has essentially gutted a suit brought by union welfare funds in California.

The tobacco industry has won another victory in the union welfare cases with a decision by a federal court in Oakland.

U.S. District Judge D. Lowell Jensen dismissed all but one claim brought by the Stationary Engineers Local 39 Health & Welfare Trust Fund and Carpenters Health & Welfare Trust Fund for California. The claims dismissed include RICO, antitrust, intentional breach of special duty, unfair business practices, restitution and unjust enrichment. The one and only count not dismissed by the court is a claim of negligent breach of special duty.

In essence, the union's case against the tobacco industry has been completely gutted, and the industry's record in defending itself against unfair and unwarranted RICO and anti-trust claims is extremely good. The decision by the federal court in Oakland reinforces our belief that the trend in the courts is against these claims. Decisions in union cases elsewhere in the United States have resulted in four of four antitrust claims dismissed, and three of four RICO claims thrown out of court, with the fourth certified for appeal.

Headquartered in Louisville, Ky., Brown & Williamson is the nation's third largest manufacturer and marketer of tobacco products. The company's major brands include KOOL, GPC, CAPRI, LUCKY STRIKE, and MISTY.

SOURCE Brown & Williamson Tobacco Corporation

-0- 05/05/98

/CONTACT: Mark Smith, 502-568-7603 or Brendan Brady, 502-568-7875, both of Brown & Williamson Tobacco Corporation/

CO: Brown & Williamson Tobacco Corporation ST: Kentucky, California IN: TOB SU:

Copyright 1998 PR Newswire. All rights reserved.

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