10 April 2007

Imperial Tobacco Group PLC revised proposal to Altadis S.A.

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Imperial Tobacco Group PLC (“Imperial Tobacco”) confirms that it made a revised proposal to Altadis S.A. (“Altadis”) in relation to a possible combination of Imperial Tobacco and Altadis at a price of Euro 47 per Altadis share in cash.

Imperial Tobacco considers that Euro 47 per share represents a full and fair price for Altadis. The revised proposal represents a multiple of 13.5x Altadis’ EBITDA for the year ended 31 December 2006 (taking into account Altadis' net debt and the interests of minority shareholders in Logista S.A.).

Imperial Tobacco also requested access to limited due diligence information in order to establish whether there may be additional value which it had not taken into account in its revised proposal.

The Board of Altadis has rejected the revised proposal and has not granted Imperial Tobacco's request for limited due diligence to establish whether there may be additional value.

Imperial Tobacco continues to believe that a combination with Altadis is strategically compelling and in the interests of both companies' shareholders.

Download the full text of the Announcement here