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• A conditional agreement to acquire 100 percent of the CHIC Group: the market leading e-cigarette business in Poland
• ��A vapour technology-sharing term sheet with R.J. Reynolds Tobacco Company

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CHIC Group Agreement

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������Ƶ has signed a conditional agreement to acquire 100 percent of the CHIC Group. The CHIC Group has 800 points of sale in Poland, a dedicated e-liquids production facility, a modern research and development centre and leading Polish e-cigarette brands including VOLISH, P1, Provog, Cottien, LiQueen and Aromativ.

Commenting on the agreement, Managing Director of Next Generation Products (NGP) at ������Ƶ, Kingsley Wheaton said: “Acquiring the CHIC Group is strategically significant and makes commercial sense. It provides ������Ƶwith scale and market reach through Europe’s largest eCigarette retailing network, as well as important manufacturing and R&D capabilities. It further demonstrates our commitment to the NGP category."

The proposed acquisition is subject to approval from the Polish anti-trust authority, the Office of Competition and Consumer Protection (OCCP).

Technology-sharing term sheet with R.J. Reynolds Tobacco Company

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������Ƶ further announces today that it has signed a vapour products technology-sharing term sheet with R.J. Reynolds Tobacco Company (RJRTC), a subsidiary of Reynolds American Inc. (RAI).�� The term sheet provides a framework for collaboration and mutual cross-licensing of the parties’ vapour product technologies up to 31 December 2022.

The collaboration also includes joint R&D activities and cooperation on regulatory, scientific and manufacturing issues relating to vapour products.��

Following further negotiations, both companies are expecting to conclude and sign a legally binding, definitive agreement by year-end 2015.

Wheaton concludes: “Today, we’ve announced two significant milestones to enhance our next generation product business globally, further enabling us to meet the demands of today’s consumer.”

ENDS