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B A T PRESS CONFERENCE TO LAUNCH BARCLAY GENEVA - SEPTEMBER 30, 1982 Venue Delegates met at Hotel President at i0:00. Taken by bus to BAT. Participants About 20 journalists. Over half from German part of Switzerlandl. - From BAT (~see Text i) Mr. Willy Fankhauser Mr. Carlo MOller Mr. Charly Martin Mrs. Heike Ibig Assistant to. Mr. M~ller Directeur C~n@ral Directeur Fond~ de pouvoir Chef du laboratoire Two from BAT's PR Agency Zutter Sommer Marketing of Basel.. S~eech of Welcome Given by Fankhauser (:French followed by German) (See Text 2) - Re Sant~ Tabac, he said: they could not discuss this subject as it is against Swiss law to do. so publicly andl distributed a letter from lawyer Urs Hofer to. this effect. (See Text 3) Main Presentation Given by M~ller (~see Text 4), accompanied by slildes A& B) (See Photos Le d~veloppement dU filtre Actron~ La physiologie du. go~t Premiere applicatfon sur la cigarette Barclay du, principe a~rodynamique du filter Actron BAT (Suisse)S:.A. ~ Gen~ve s'int~resse ~ cette nouvelle cigarette Dor4navant, la cigarette Barclay munle du filtre Actron peut ~tre lanc~e sur le march~ suisse. During this presentation Mme Ibilg, for a few minutes only, demonstrated:the model glass mouth (See Photo C)., explained the smokinq machine followed ~nternational standards.

- 2 - Press Release Distribution (see Text 5)i. Note no mention of numbers, but "Article de presse condense". Questions & Answers Not a: great many. Main interest centered on U.S. experience/problems. Fankhauser explained they introduced Barclay in 1981. RJ~ and: Philip Morris disagreed with their numbers. But 16 experts from around the worl!d are confirming BAT's figures (doctors and physicians). He mentioned the first decision/action of the FTC. And the second decision/action of the Federal Court. Now, he a~notunced~ that they can go on selling while the matter must be reconsidered by the Federal Court. Fankauser presented the BAT' view of what has happened in the U~ S. along the fo~]~owing~ lines : Look what our competition did in the U.S. They were angry about us and. our revolutionary filter. They tried: to copy the filter - but they cannot dO. so because it is totally covered by our patents. In. the U.S., PM. and RJR have 60% of the market - we have only ~4%. The question was asked about what action was happening in Switzerland:. - Fankhauser said: that PM and RJR were trying again here - EVEN BEFORE THE CIGARETTE. WAS ~LAUNCHED ON THE MARKET. PM and RJR have been writing and. going to see the Cantonal Chemist. This Cantonal Chemist, Mr. Roman, came to the conclusion that 1 mg tar and 0.2 mg nicotine are "more or ~ess right". And the Can~ona~ Chemist of VaudI, Mr. Aubort, agrees with this conclusion,. Observer's note : The impression was given that PM and RJR had tried to influence this Cantonal Chemist. - Yes, the filter can be usedl on any kind of cigarette. - Yes, we have had. great success in the U.S. 1.6% market share in ~he first year, which is exceptional. - We launch first in Switzerland, after the U~S., becuase the ultra light cigarettes are very successful here. And we are an innovating company. General Observations i. The conferencetook place in a friendly atmosphere. shown (many journalists were smoking heavily). No hostility ./..

- 2 - The presentation of the brand/filter was as a revolut£onary product - "the cigarette of the century". The opposition to Barclay was concentratedl round PM and PJR. No other cigarette company (U.S. or Swiss). was mentioned at all. PM and RJR were presented as reacting out of anger and envy of the success of th~s revolutionary new filter. The legal hassle in. the U.S. was explained. No word of any- thing in Switzerland:. The numbers/measurement side was played right down. The main message was on ultra light cigarette, better than~ any other because it gives better taste in the mouth. The collapsing of the vents- dilution on machine/in, the mouth difference was never touched on. Only the effect of the mixture of smoke and air in the mouth giving better taste. ii10182