Imperial Tobacco Looks Overseas (fwd)

[Robert Weissman <rob@essential.org>]

 November 9, 1998 


 Dow Jones Newswires

 Imperial Tobacco Grp Growing Despite
 Restrictions, CEO Says

 Dow Jones Newswires

 NEW YORK -- Imperial Tobacco Group PLC can function successfully
 despite increasing restrictions on its advertising and marketing in its home
 country of the United Kingdom, according to Chief Executive Gareth Davis.

 Imperial Tobacco Group's American Depositary Shares began to trade on
 the New York Stock Exchange Monday under the ticker symbol ITY.

 "Our recent growth has very much been overseas, and we face increasing
 restrictions on our marketing freedoms," Davis said in an interview on CNBC
 Monday.

 But he noted that for the past 30 years, the company has agreed to such
 restrictions in the U.K. "Controls and restrictions on our freedom are no
 stranger to us," he said, "and we can operate within those environments quite
 effectively."

 Imperial Tobacco's strategy is to consolidate its position in the U.K. and
 achieve international growth both organically and by acquisition, he said.

 "Our international business has been growing very fast, and the international
 tobacco market is still in slight growth if one looks at it on a global scale,"
 Davis said. "For a relatively new entrant to international markets, there's a
 tremendous scope for us going forward, so we see the future as a very
 buoyant one."

 Imperial Tobacco Group, whose brands include Regal, Embassy, John Player
 Special, Superkings and Lambert & Butler, controls 38% of the cigarette
 market in the U.K.

 The company also makes Classic and Panama cigars as well as Amphora and
 St. Bruno pipe tobacco. It sells hand-rolling tobacco in more than 70
 countries under the Drum, Golden Virginia, and Winner names.

 Imperial has a 60% share of the Netherlands roll-your-own market, the
 world's largest.