IMPERIAL TOBACCO GROUP PLC INTERIM MANAGEMENT STATEMENT

Imperial Tobacco Group PLC confirms that the overall operational performance and financial position of the Group for the financial year to 30 September 2011 is in line with the Board’s expectations having regard to current pricing in Spain.

Delivering Sales Growth Through Total Tobacco Portfolio

• Group sales growth across international footprint with gains in EU and emerging markets • Combined volumes of global cigarette brands Davidoff, Gauloises Blondes, West up 2 per cent • JPS cigarette volumes up 15 per cent • Fine cut tobacco volumes up 4 per cent • Luxury Cuban cigar volumes up 1 per cent • Snus volumes up 26 per cent

Summarising today’s announcement Alison Cooper, Chief Executive, said:

“Our focus on building sales across our international footprint through developing our total tobacco portfolio has increased Group tobacco net revenues by 2 per cent and 4 per cent excluding Spain.

“We grew volumes of our global strategic cigarette brands Davidoff, Gauloises Blondes and West with good performances in emerging markets and we also achieved further excellent progress with JPS.

“We made strong fine cut tobacco gains in a number of EU markets and we also increased volumes of our luxury Cuban cigars, despite difficult conditions in Spain.

“We are well placed to build on our sales growth momentum in the remainder of the year, which supported by our ongoing focus on costs and effectively using our cash, will enable us to continue maximising value for our shareholders.”

Trading Update

The following highlights of our trading performance relate to the nine months to 30 June 2011 unless otherwise stated. Revenues exclude the impact of foreign exchange.

9 months to 30 9 months to 30 June June ex Spain Tobacco net revenue* +2% +4% Total stick equivalent volumes** -2% -% Cigarette volumes -3% Fine cut tobacco volumes (stick equivalents) +4% Habanos cigar volumes +1% Snus can volumes +26% * Tobacco net revenue excludes the impact of foreign exchange ** Stick equivalents reflects our combined cigarette and fine cut tobacco volumes.

By focusing on driving growth through our total tobacco portfolio we increased Group tobacco net revenues by 2 per cent. Excluding Spain Group tobacco net revenues grew 4 per cent and stick equivalent volumes were broadly stable.

Combined volumes of our global strategic cigarette brands Davidoff, Gauloises Blondes and West were up by 2 per cent, with new formats supporting growth.

We increased Davidoff volumes by 6 per cent with excellent growth in Taiwan, Ukraine, Saudi Arabia and Russia. Volumes of Gauloises Blondes were up by 1 per cent with a strong performance in North Africa. We grew West in Eastern Europe, primarily Russia, although market driven declines in Poland and Turkey resulted in overall stable volumes.

We achieved further impressive growth from JPS, increasing volumes by 15 per cent with good results in numerous markets, including Germany, UK, Australia, Portugal and Greece.

We continue to capitalise on our world leadership in fine cut tobacco, improving volumes by 4 per cent, with good results in Spain, Poland, Portugal, Italy, Czech Republic and Greece.

We grew volumes of luxury Cuban cigars with excellent growth in Russia, Brazil and China and continue to grow our snus business strongly with can volumes increasing 26 per cent.

EU Markets

In the UK, gains in our value portfolio continued to support our market leading shares in cigarette and fine cut tobacco but the market has seen some further declines since the March duty increase. In Germany, we grew JPS in both cigarette and fine cut tobacco such that we benefitted from stable shares in a growing market, enhanced by a price increase in May. Elsewhere in the EU we have grown revenues, including in France, Poland and Czech Republic.

In Spain, cigarette prices reduced in May and June as a result of various brands being repositioned, significantly impacting market profitability. On 2 July we increased prices across our portfolio and based on prices as at 25 July, we currently estimate for the financial year to 30 September 2011 that adjusted operating profits derived from Spain could reduce by up to £70 million, an improvement against our previously announced expectations based on pricing as at 13 June, of £110 million. Of this, up to £20 million represents a one-off non- recurring impact on our logistics business, an improvement against our 13 June expectation of £40 million.

Non-EU Markets

Across our non-EU markets we delivered good growth in Asia Pacific and Africa, offset by reduced volumes in the Middle East due mainly to compliance with international sanctions.

We increased cigarette volumes across numerous markets in Africa with Gauloises Blondes driving very strong growth in Algeria and Tunisia. We also increased our share in Morocco.

In Asia-Pacific, we enhanced our volumes across the region and grew our cigarette shares in Australia, New Zealand, South Korea and Cambodia.

In Eastern Europe we continued to drive sales growth with good performances from our global strategic brands in Russia and Ukraine.

In the USA our cigarette share was stable and we delivered strong revenue growth in our premium cigar business.

Logistics

In Logistics we have focused on ongoing cost management, business integration and development of new services to help offset the impact of price changes in the Spanish market.

Enquiries

Gerry Gallagher (Director of Investor Communications) Telephone: +44 (0) 117 933 7014

Alex Parsons (Director of Corporate Communications) Telephone: +44 (0) 117 933 7241

Simon Evans (Group Press Officer) Telephone: +44 (0) 117 933 7375

Copies of our announcements are available on our website: www.imperial-tobacco.com.