Trading update

Imperial Tobacco Group PLC (Imperial Tobacco) confirms that the anticipated financial performance and position of the Group for the financial year to 30 September 2010 remains in line with the Board’s expectations.

Tobacco net revenues are expected to be up around 3 per cent in the year.

Our global strategic cigarette brands continue to perform well with Davidoff and West volumes growing and Gauloises Blondes’ performance improving in the second half. Cigarette volumes remain in line with the nine-month trends outlined in the 22 July Interim Management Statement. Our fine cut tobacco business continues to perform strongly with volumes expected to be up around 6 per cent and as a result we expect white stick equivalent* volumes to decline around 3 per cent.

The first half working capital outflow continues to unwind as predicted such that we expect full year cash conversion** to be in the region of 90 to 100 per cent.

Imperial Tobacco expects to release its results for the year ending 30 September 2010 on Tuesday 2 November 2010.

Alison Cooper, Chief Executive said:

"We continue to drive shareholder returns through our enhanced focus on sales, ongoing cost optimisation and the effective use of our cash and I am pleased with our financial delivery given the challenging environment in a number of markets this year. We remain focused on developing our brand and product portfolio across our regions, responding to consumer shifts within our cigarette and other tobacco product portfolio, to maximise our sales potential."

*White stick equivalent volumes are defined as cigarette volumes plus fine cut tonnage converted into cigarette equivalents
**Cash conversion is defined as cash flow post capital expenditure pre interest and tax measured as a percentage of adjusted operating profit.

Enquiries
Gerry Gallagher (Director of Investor Communications)
Telephone: +44 (0) 7813 917 339

John Nelson-Smith (Investor Relations Manager)
Telephone: +44 (0) 7919 391 866

Alex Parsons (Head of Corporate Communications)
Telephone: +44 (0) 1179 337 241

Simon Evans (Group Press Officer)
Telephone: +44 (0) 1179 337 375

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