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i, HISTORY OF AMMONIA TECHNOLOGY 1, NATURAL AMMONIA REACTING WITH NATURAL SUGARS WE CAN CONSIDER THE HISTORY OF AMMONIA TECHNOLOGY TO START WITH COLUMBUS IN 1492 WHEN HE DISCOVERED TOBACCO IN THE AMERICAS. TOBACCO CONTAINS NATURAL AMMONIA AND SUGARS, WHICH MUST CERTAINLY REACT. FOR EXAMPLEI WE FIND SMALL AMOUNTS OF DEOXYFRUCTOSAZINES IN PURCHASED FLUE-CURED TOBACCO! AND THESE COMPOUNDS ARE FORMED BY REACTION BETWEEN AMMONIA AND THE REDUCING SUGARS GLUCOSE AND FRUCTOSE. 2, REDRYING OF CASED BURLEY TOBACCO AMMONIA TECHNOLOGY WAS ENHANCED WHEN CASED BURLEY TOBACCO WAS REDRIED TO MAKE PIPE TOBACCOS. CASING AND REDRYING GREATLY REDUCED THE HARSHNESS OF BURLEY AND SLOWED DOWN ITS BURN RATE. THE BURLEY TASTE CHARACTER WAS ALSO CHANGED MARKEDLY. THIS TECHNOLOGY WAS LATER INCORPORATED INTO THE DEVELOPMENT OF THE SO CALLED AMERICAN BLENDED CIGARETTE, WHICH FIRST APPEARED AS CAMEL IN 1913. 59 )0,3EB3

t IN ANALYTICAL EXPERIENCEI WE CAN NEVER FIND THE SUGAR WE ADDED IN THE FINAL CASED/REDRIED BURLEY TOBACCO. THE WEIGHT IS STILL THEREI BUT MUCH OF THE SUGAR HAS CHANGED SUCH THAT IT NO LONGER ANALYZES AS SUGAR. THIS ANALYTICAL LOSS OF SUGAR IS MUCH GREATER WHEN REDUCING SUGARS PREDOMINATE IN THE CASING. WHAT HAS HAPPENED IS THAT THE SUGARS HAVE REACTED WITH AMMONIA TO FORM DIFFERENT MATERIALS. THE IMPORTANT POINT IN THIS HISTORY IS THAT AMMONIA TECHNOLOGY IS NOT NEWt AND THAT IN PRACTICING MORE ADVANCED AMMONIA TECHNOLOGY WE ARE NOT GENERATING ANYTHING NEW. WE SIMPLY ENHANCE WHAT WE HAVE HAD ALL THE TIME. ~, PHILIP MORRIS BAND-CAST RECONSTITUTED TOBACCO RECONSTITUTED TOBACCO (RECON) MANUFACTURE WAS PIONEERED BY THE CIGAR MANUFACTURERS WHO NEEDED ECONOMICAL ALTERNATES TO LEAF FOR BINDERS AND WRAPPERS. THE MOST SUCCESSFUL METHOD WAS DEVELOPED BY THE GENERAL CIGAR CO. IT INVOLVED COOKING AND FINELY GRINDING A WATER SLURRY OF STEMS AND TOBACCO FINESI AND THEN CASTING IT ON A WIDE STAINLESS STEEL BELT WHICH CONVEYED IT THROUGH A DRYING TUNNEL. THE DRIED SHEET WAS DOCTORED OFF THE END OF THE BELT. THIS IS THE BAND-CAST PROCESSI SOMETIMES CALLED THE SLURRY PROCESS. I SOME NATURAL PECTIN IS RELEASED DURING THE GRINDING OF THE SLURRYI AND IT IS THIS PECTIN THAT HOLDS THE FINAL t, oM/~H ~s RECON SHEET TOGETHER. B&W's RECON~ PCL, ~ MADE IN THIS -2- 5 ;64

MANNER WITH NO FURTHER CHEMICAL TREATMENT OR ADDED BINDERS. I~L~SC0"s A3AX PROCESS PCL MADE THE SAME WAY, BUT SOMETIMES WITH A FOREIGN BINDER, SODIUM CARBOXYMETHYLCELLULOSE. AT ABOUT THE SAME TIME IN THE EARLY 1950"s, PHILIP MORRIS (PM) WAS ALSO DEVELOPING A BAND-CAST RECON TO REALIZE THE ECONOMIES OF FULLY USING STEMS AND TOBACCO FINES. BUT, PM DECIDED TO FREE MOST OF THE PECTIN IN THE TOBACCO, THUS PRODUCE A VERY STRONG/SHEET. PECTIN RELEASE WAS ACCOMPLISHED BY COOKING THE SLURRY WITH DIAMMONIUM PHOSPHATE, AND ADDING MORE AMMONIA AS NECESSARY TO MAINTAIN EFFICIENT PECTIN RELEASING CONDITIONS. PM CALLED THIS SHEET RCB. PM's RCB SHEET DRAMATICALLY ALTERED THE SMOKE TASTE FROM TOBACCO BLENDS. THE TASTE CHARACTER WAS STRONGLY SHIFTED TOWARDS BURLEY WITH FURTHER ENHANCED BARNYARD NOTES. THUS, THE MARLBORO MAN WAS BORN IN A MASTERFUL ADVERTISING CAMPAIGN. BEFORE RCB, MARLBORO WAS A SLOWLY DECLINING BRAND THAT APPEALED MAINLY TO WOMEN. AFTER RCB, MARLBORO SALES SHIFTED TOWARDS STEADY GROWTH. THE RCB RECON HAS ANOTHER INTERESTING PROPERTY. IN THE CIGARETTE IS SCAVENGES NICOTINE FROM THE OTHER TOBACCOS'~ RCB PICKED OUT OF CIGARETTES WILL HAVE THE HIGHEST NICO[TINE / CONTENT OF ANY BLEND COMPONENT, OFTEN BY A FACTOR OF TWO. BATCF HAVE INVESTIGATED THIS ~AMMONIA EXCHANGE~ REACTION. ALSO, A LORILLARD PATENT PROVIDES FULL DETAILS. -3- 5990(O6~,~

4, PM'$ PAPER RECON A PAPER PROCESS RECON IS INHERENTLY CHEAPER TO MANUFACTURE THAN A BAND-CAST RECON. SMALL AMOUNTS OF PAPER RECON FIRST APPEARED IN PMZs BRANDS IN 1973. WE UNDERSTAND THAT PN FIRST HAD KIMBERLY-CLARK CO. MAKE THE SHEET FOR THEMw THEN BOUGHT THE ~KNOM-HOW~ AND THE PROCESS AND BUILT THEIR OWN PAPER RECON FACTORY. OVER A PERIOD OF SEVERAL YEARS THE PAPER RECON STEADILY INCREASED UNTIL IT LEVELED OFF AT ABOUT 70~ OF THE RECON IN PM'S CIGARETTE BLENDS. THE PRESENCE OF SUBSTANTIAL PAPER RECON IN PM's CIGARETTE BLENDS COINCIDED WITH THE EXPLOSIVE GROWTH OF THEIR MARLBORO BRAND. WE CAN SEE WHY. IN OUR 3UDGEMENT, RCB AND B~W's COMPARABLE CPCL, ARE TOO MUCH OF A GOOD THING. AT SOME POINT PM INCORPORATED AMMONIA TECHNOLOGY INTO THEIR PAPER RECON PROCESS. THIS WAS DONE BY ADDING DIAMMONIUM PHOSPHATE TO THE MIX. THE IMPORTANT POINT IS THAT PM HAS NEVER BEEN ABLE TO REPLACE RCB WITH THEIR CHEAPER PAPER RECON. THIS FACT LED TO THE CONCLUSION AT B~W THAT RCB IS THE ~SOUL OF MARLBORO~. CONFIRMATION OF THIS CONCLUSION IS PROVIDED BY PM's WIDE USE OF RCB IN WORLDWIDE MARKETS. Two RECENT CHANGES IN PM's PAPER RECON HAVE BEEN INCORPORATION OF UREA (SEE LATER) FOR HARSHNESS REDUCTIONI AND USE OF PROPYL PARABEN TO RETARD MOLD GROWTH. -4- 5990 GSE;

5, PM'~ AMMONIUM CARBONATE EXPANDED TOBACCO (ACET) PM FIRST STARTED USING ACET IN THE EARLY 1970"S. HOMEVERe THIS EXPANSION PROCESS HAS CORROSION AND OTHER PROBLEMS. ACET WAS PHASED OUT IN THE U.S. ABOUT DECEMBER 1987. ZN THE LAST STAGES OF DOMESTIC ACET USE, ONLY PM'S LOUISVILLE FACTORY WAS MAKING MARLBORO WITH ACET; THE RICHMOND AND NORTH CAROLINA FACTORIES WERE MAKING MARLBORO WITH DIET. 6, RELATED PM INFORMATION IT IS OUR UNDERSTANDING THAT PM USED AMMONIUM CARBONATE IN CASINGS DURING THE TRANSITION STAGE WHEN ACET WAS BEING PHASED OUT. PM is ALSO USING AMMONIUM CARBONATE TO FACILITATE NICOTINE RELEASE IN DENICOTINIZING TOBACCO FOR THEIR NEW DE-NIC BRANDS. THESE ALL SEEM TO USE THE SAME 100~ FLUE-CURED BLENDI BUT THIS BLEND ENDS UP WITH TWICE THE AMMONIA LEVEL OF THE MARLBORO BLEND. FOR MANY YEARS WE WONDERED ABOUT THE WIDE SPREAD BETWEEN REDUCING SUGARS AND TOTAL SUGARS IN PM BRANDS. WE LATER FOUND THE EXPLANATION; PM CIGARETTE BLENDS HAVE HIGH '~ SUCROSE LEVELS. SUCROSE IS NOT A REDUCING SUGAR AND S~WS / LITTLE REACTIVITY WITH AMMONIA. -5- 599003

THE IMPORTANCE OF SUCROSE CASING IS THAT THE AMMONIA IN PM'S RECONS MIGRATES TO THE TOBACCO WHERE IT REACTS WITH THE REDUCING SUGARS. SUCROSE REMAINS LARGELY UNAFFECTED TO DO ONE MA3OR THING ME EXPECT OF A SUGAR CASING, MHZCH IS TO REDUCE THE PH OF BURLEY SMOKE TO PRODUCE AN ACCEPTABLE TASTE. PH USES HOST OR ALL OF ITS BURLEY STEM IN ITS RECONS. ABOUT 1980 THEY CHANGED THE MANUFACTURING PROCESSES FOR BOTH RECONS TO REMOVE MOST OF THE NITRATE. 6, B&W UREA DEVELOPMENT B&W OBTAINED A U.S. PATENT IN 1976 ON THE USE OF ADDED UREA TO MAKE A FLUE-CURED BLEND TASTE MORE LIKE AN AMERICAN BLEND. UREA WAS ALSO FOUND TO BE VERY EFFECTIVE IN REDUCING AT LEAST ONE TYPE OF HARSHNESS; IT uFIXEDH THE CIGARETTE THAT WAS ACCEPTED AS THE WORLDWIDE MAXIMUM FOR HARSHNESS. ~HILE B&W DID NOT PURSUE THIS DEVELOPMENT FURTHER, CELANESE USED ABOUT 296 UREA IN THEIR CYTREL TOBACCO SUBSTITUTE TO REDUCE "PAPER TASTE"r. B&~ WORK WITH SIMILAR TOBACCO SUBSTITUTES SHOWED UREA TO MARKEDLY IMPROVE THEIR SMOKE TASTE FROM AMFUL TO JUST BAD. t KIHBERLY-CLARK HAS ALSO PROPOSED A MIX OF UREA AND PALMITIC ACTD FOR REDUCING THE HARSHNESS OF PAPER RECONS. -6- 599oo3r:

7, B&W DEVELOPMENT OF EBR AMMONIA TECHNOLOGY GENERALLY INVOLVES FORCZNG SOME AMMONIA CHEMISTRY, AND THIS IS MOST CONVENIENTLY DONE DURING RECON MANUFACTURE. B&WtS TWO AMMONIA TECHNOLOGY RECONS WILL BE BRIEFLY DEFINED HEREI AND DETAILED IN LATER SECTIONS OF THE HANDBOOK. EBR DEVELOPMENT HAD THE TWOFOLD OB3ECTIVES OF MAKING AN AMMONIA TECHNOLOGY RECON AND REMOVING NITRATE. THE STEM SIDE OF THE FURNISH IS PRIMARILY BURLEY STEMS AND THE EXTRACT FROM STEM DIGESTION IS DISCARDED. DIAMMONIUM PHOSPHATE IS ADDED IN THE CONCENTRATED EXTRACT LIQUOR (CEL) FROM LAMINA FINES EXTRACTION. 8, B&W DEVELOPMENT OF CPCL THE OBOECTZVE IN CPCL DEVELOPMENT WAS TO MATCH PM's RCB iN ALL IMPORTANT CHARACTERZSTICS EXCEPT FOR NITRATE REMOVAL. THIS OBJECTIVE HAS BEEN MET. THERE STILL REMAIN SOME LESSER DIFFERENCES. SUCH AS MUCH MORE LICORICE IN RCB. WITH THE PURCHASE OF THE LANCHESTER FACTORY FOR CPCL PRODUCTION. B&W WILL NOW BE IN A POSITION TO FULLY OPTIMIZE THIS IMPORTANT RECON PRODUCT. i 9, DEVELOPMENT OF EHERGE BY BATCF BATCF DOES NOT USE ANY RECON. ~NSTEAD THEY USE HIGH LEVELS OF STEM MADE BY THE WTS PROCESS. EHERGE WAS DEVELOPED AS A STEM CASING ADDZTIVE. ~NITIAL FORMULATIONS 5990036

CONTAINED AMMONIUM SALTS OF MALIC AND CITRIC ACIDSI ALONG WITH SOME NATURAL PLANT POLYSACCHARIDE GUM. LATER SAMPLES HAVE CONTAINED VARYING AMOUNTS OF PHOSPHATE. 10, AN$IR0 DEVELOPMENT BY SOUZA CRUZ SOUZA CRUZ IS LIKE BATCF IN THAT THEY USE HIGH WTS LEVELS AND NO RECON IN THEIR BLENDS. 5. OTHER BAT DEVELOPMENTS EMERGE ANSIRO 6. COMPETITION - U.S. MARKET 7. COMPETITION - PM WORLDWIDE 8. BIBLIOGRAPHY -7-