To: Jim Bishop who wrote (74541 ) 12/14/2000 1:12:26 PM From: john Read Replies (1) | Respond to of 150070 (COMTEX) B: HAVANA GROUP INC - ZIGARETTES, Make-Your-Own Custom Cigar B: HAVANA GROUP INC - ZIGARETTES, Make-Your-Own Custom Cigarettes Distributed - Exclusively Through Phillips & King Intl. Inc. New York, New York, Dec. 14, 2000 (Market News Publishing via COMTEX) -- The Havana Group, Inc. announced the introduction of its Zigarettes brand of Make-Your-Own custom cigarettes. The Zigarettes line consists of filter tubes, a tube-filling machine, a pocket cigarette case and 5 unique tobacco blend flavors -- vanilla, pina cola, raspberry, menthol and regular. The suggested retail price for the filter tubes and tobacco to make the carton equivalent of 200 factory-made cigarettes is approximately $12.50. The Company achieves its price advantage over factory-made cigarettes by selling its tobacco and filter tubes separately, thereby avoiding the added costs that apply to packaged cigarettes. William Miller, CEO of The Havana Group comments, "The industry anticipates the make-your-own cigarettes market will continue to increase substantially in the coming years. It is our intention to capture significant market share in the M-Y-O category with this brand and we are committing to major trade promotions which begin in January." Gary Corbett, President of The Havana Group estimates 35% growth in the segment from 1998 through 2000. "Major cigarette companies will likely raise factory list prices in early 2001, a Federal Excise tax increase of $.50 is scheduled for 1/1/02, NY State has already raised cigarette tax to $11.10 per carton. Price increases such as these should drive more consumers to M-Y-O. Handcrafted cigarettes look exactly like factory-made cigarettes while generally smoke longer, and the Zigarettes brand allows the consumer to customize their cigarettes with flavored tobaccos." Phillips and King International, Inc., a wholly owned subsidiary of The Havana Group, will be the exclusive distributor for the Zigarettes brand. P&K will sell the line to smokeshop retailers through its direct sales force and through its website pkcigar.com . About The Havana Group The Havana Group, Inc. is a direct marketer of tobacco products which include tobaccos, smoking pipes, make-your-own cigarettes, cigars, and smoking accessories which it sells in catalogs and through its website smokecheap.com . The Company also manufacturers its own patented line of smoking pipes which it produces at its production facility in Bristow, Oklahoma. Phillips & King International, Inc., a California based wholesale distributor of cigars, pipes, tobaccos and smoking accessories currently markets to over 2,200 active customers through a direct sales force and through its Internet website pkcigar.com . Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks. ______________________________________ ___________________________________________________________________ (c) Market News Publishing Inc. Tel:(604) 689-1101 All rights reserved. Fax:(604) 689-1106 MarketbyFax(tm) - To get the NEWS as it happens, call (604)