RNS Number:6809U
Imperial Tobacco Group PLC
27 January 2004


IMPERIAL TOBACCO GROUP RESTRUCTURES EUROPEAN MANUFACTURING OPERATIONS

Imperial Tobacco Group today announced a restructuring of its European
manufacturing operations as part of an ongoing commitment to enhance
productivity and improve operational efficiencies.

The Group is conducting an extensive review of its manufacturing portfolio and
is taking into account the potential impact of European Union enlargement on its
operations in accession countries.

As a result, the Group is closing its cigarette manufacturing operations in
Hungary, Slovenia and Slovakia. The Group's filter production centre in Hungary
will also close. The closures will be complete by May 2004 and will result in
the loss of around 940 jobs. Sales and marketing activities and the quality and
availability of Imperial Tobacco products in these markets will not be affected.

The closures are expected to generate annual cost savings of around #20 million
from 2005 onwards. In the year to September 2004 it is anticipated that there
will be a restructuring charge of #35 million, including asset write-offs, which
will be part funded by proceeds of asset disposals.

David Cresswell, Imperial Tobacco Group Manufacturing Director, said: "Any
announcement that involves job losses is regrettable and we are continuing to
support our employees in a fair and considerate manner. However, this
restructuring is an important part of our drive to reduce over-capacity and
maintain our competitive advantage. It further strengthens our position as one
of the most efficient tobacco manufacturers in the world."

The announcement follows last year's closure of the Group's cigarette factory in
Cambodia, a roll-your-own packing facility in Meppel, Netherlands, and a
warehouse distribution centre in Bristol, UK. Following the closure of these
operations in Hungary, Slovenia and Slovakia, the Group's global manufacturing
portfolio will consist of 32 facilities.

ENDS

ENQUIRIES

Alex Parsons                        Nicola Tate
Imperial Tobacco Group              Imperial Tobacco Group
Group Media Relations Manager       Investor Relations Manager
Tel +44 (0)117 933 7241             Tel: +44 (0)117 933 7082

www.imperial-tobacco.com

Notes to Editors
The cigarette factory in Debrecen, Hungary, has around 260 employees and
produced 2.7 billion cigarettes in 2003. The filter production centre has around
120 employees and produced 4 billion filters in 2003.

The cigarette manufacturing operations in Ljubljana, Slovenia, has around 260
employees and produced 5.8 billion cigarettes in 2003.

The cigarette factory in Spisska Bela, Slovakia, has around 300 employees and
produced 5.9 billion cigarettes in 2003.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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