Attorney General's News Release

August 23, 2004

Missouri will receive $1.7 million from Florida tobacco company that was not part of 1998 settlement with states

Jefferson City, Mo. — Missouri will receive an additional $1.7 million in tobacco money, thanks to an agreement with a Miami, Fla.-based tobacco manufacturer, Attorney General Jay Nixon announced today.

Vibo Corp., the largest tobacco company that did not join in the 1998 agreement between major tobacco makers, Missouri and 45 other states, has now become a participating manufacturer in the Master Settlement Agreement (MSA). Vibo, which does business as General Tobacco, sells such cigarette brands as Bronco, GT One, Silver and Champion.

Under the agreement, Missouri will receive immediately $1.7 million from Vibo's payment of $78 million to the states. Missouri expects to receive between $30 million and $40 million from Vibo over the next 10 years.

"Equally as important as the money Missouri will receive are the restrictions Vibo must now comply with," Nixon says. "Those restrictions are what are going to help us in our fight to continue the decrease in smoking rates."

Participating manufacturers under the MSA are bound by a wide array of restrictions on the advertising, promotion and marketing of cigarettes, including outright bans on targeting youth, outdoor advertising, and distribution of any merchandise advertising a cigarette brand. Since the MSA took effect, youth smoking rates nationally have dropped by more than 25 percent and overall smoking has declined nearly 20 percent.

The MSA was originally entered into between 46 states and the major tobacco companies in November 1998. Since that time, more than 40 other companies have joined the MSA.

Vibo's decision to join the MSA is especially significant because the company represents by far the largest tobacco product manufacturer remaining outside the MSA. Vibo is the exclusive U.S. importer of cigarettes from Protabaco, S.A., of Bogota, Colombia. Today's agreement binds Protabaco to sell all of its cigarettes in the U.S. through Vibo and in accordance with the MSA.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818