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IN THE CIRCUIT COURT, FIFTEENTH JUDICIAL CIRCUIT IN AND FOR PALM BEACH COUNTY, FLORIDA STATE OF FLORIDA, et al,, Plaintiffs, -v- AMERICAN TOBACCO et al., COMPANY, Defendants. -O- : Case No.. CL 95 1466AH Video Deposition of: RZCHARD J. SEMENIK oO- Taken Place: Date: By: Reporter: Counsel for Plaintiffs Airport Hilton Hotel 5151 Wiley Post Way Salt Lake City, Utah May 19, 1997 9:14 a.m. Ariel Mumma, CSR/RPR -0- VIDEOTAPE A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 17 18 19 20 21 22 23 24 25 For the For the APPEARANCES Plaintiff: Mr. Ralph L. Gonzalez YERIK, KNOPIK & MUDANO i01 East Kennedy Blvd., Tampa, Florida 33601 (801) 222-8222 Ms. Jennifer A. Coley SCRUGGS, MILLETTE, LAWSON, BOZEMAN & DENT, P.A. Post Office Drawer 1425 734 Delmas Avenue Pascagoula, Mississippi (601) 762-6068 (601) 762-1207 (fax) Suite 2160 Defendant: Mr. Allen R. Purvis SHOOK, HARDY & BACON One Kansas City Place 1200 Main Street Kansas City, Missouri (816) 474-6550 Also Present: 64105 Ms. Debra Chrobak, Videographer -o0o- RICHARD J. SEMENIK Examination by Mr. Gonzalez -oOo- 39568-1425 WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 EXHIBITS Description Expert Statement (2 pages) Color photograph of billboard (I page) "A Frank Statement to Cigarette Smokers" (1 page) -o0o- A. WILLIAM ROBERTS, JR., & ASSOCIATES 3

LAWYER'S NOTES Paue LAne A. WILLIAM ROBERTS, JR. & ASSOCIATES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 May 19, 1995; 9:14 a.m. PROCEEDINGS videotape May 19th, 1997. This is the deposition of State of Florida, VIDEOGRAPHER: We are now on the record. The time is 9:14. The date is the beginning of Tape Number 1 in Richard Semenik in the matter of et al. versus American Tobacco Company, et al. This deposition is being videotaped at 5151 Wiley Post Way; Salt Lake City, Utah. Videographer is Debra Chrobak. This deposition is being videotaped also by Legal Video Services located at 1431 Center Street; Oakland, California. Counsel, please MR. GONZALEZ: Dr. Semenik. My name think at this point we be sworn. proceed. Good morning, is Ralph Gonzalez, and I would ask that the witness A. WILLIAM ROBERTS,. JR., & ASSOCIATES

1 2 3 4 5 6 7 8 9 i0 II 12 13 14 15 16 17 18 19 20 21 22 23 25 RICHARD J. SEMENIK, called as a witness, having been duly sworn, was examined and testified as follows: BY MR. GONZALEZ: Q. Dr. Semenik, for the record, would you please state your full name, sir. A. Yes, my name is Richard J. Semenik. Q. And you are a professor at? A. I'm a professor in the school -- David Eccles School of Business at the University of Utah in the marketing department. Q. And again for the record I'm Ralph Gonzalez representing the state of Florida in matter. confusing "I don't again. this Should I ask a question and it is or long-wlnded, please feel free to say understand you, Mr. Gonzalez," and do it With that in mind let's go ahead, and what I'd like to do is I'd like to have your expert statement marked as Exhibit Number 1 for this deposition, please. A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 5 6 7 8 9 10 Ii 12 13 14 15 16 17 18 19 20 21 22 23 25 {Exhibit 1 was marked for identiflcation.} Q. BY MR. GONZALEZ: If you would just take an opportunity to review that statement. Have you seen that before, sir? A. Yes, I have. Q. Okay. Did you draft that statement? A. I drafted this in conjunction with the attorneys in this case. Q. When you say in conjunction with the attorneys, do you mean that they prepared a draft for you to revise and edit or that you drafted it and they revised it and edited it? A. They drafted it, we discussed the points I made and the scope of my testimony, and then I revised it. Q. Okay. I notice that there are several different categories of opinions that are included in here. Were there any categories of opinions that you were asked to comment on that were later dropped from this draft? A. No. Q. Okay. All right. In the second paragraph you refer to marketer-controlled information. Can you tell me what you mean by. marketer-controlled information. A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Marketer-controlled information includes any of the marketing tools that corporations use to provide consumers with information about their brands. Q. And for purposes of your analysis in this case, who did you define the consumers to be? A. Consumers would be anyone in the market who has chosen to use tobacco products, specifically cigarettes. Q. Okay. Did any of your work on this include other consumers of information that might come out from the tobacco industry; in other words, government or medical doctors or researchers or anything like that? Did you look at any of the advertisements or anything you reviewed with that angle in mind? A. Not that I recall, no. It was consumers. Q. When you speak of marketer-controlled information, advertising comes to mind. Are there other aspects of -- that would fit under that that would be generally understandable, other than advertising? A. Yes. Q. What would that be? A. Personal selling, sales promotion, the A. WILLIAM ROBERTS, JR., & ASSOCIATES

8 1 2 4 5 6 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 25 public information arms of corporation that provide news releases for the media. In this day and age the Internet has become a source of information. So various tools of that sort. Q. Okay. As far as the documents that you reviewed in this case, what documents or what information did you gather with respect to personal selling? A. Well, with respect to this case, I gathered no information regarding personal selling. Q. How about sales promotion, as you defined it. A. True sales promotion materials did not appear in any of the materials that I gathered for this case. Q. Okay. What about public information arm as you described; news releases I believe was one of those. Did you review anything in that category? A. The newspaper stories from various Florida newspapers included news releases with comments attributable to tobacco company personnel. Q. But you've not collected a -- a -- a group of press releases or actually issued the entire release; is that correct? A. WILLIAM ROBERTS, JR., & ASSOCIATES

1 2 3 4 5 6 7 8 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. That is correct. Q. Okay. And as far as the Interne~ is concerned, have you gone onto the Internet to see what's out there in terms of what one might consider to be marketer-controlled information? A. Not with information, no. Q. Is it fair A. Excuse me. moment. MR. a problem. VIDEOGRAPHER: GONZALEZ: VIDEOGRAPHER: MR. GONZALEZ: respect to marketer-controlled to say that -- The technician would like a One moment, please. Take your time. It's not Sorry about this. It's all right. We haven°t gotten into it yet. (Pause) (There was a discussion held off the record.) VIDEOGRAPHER: Going off the videotape record. The time is 9:20. (There was a short break taken.) VIDBOGRAPHER: We're back on the videotape record. The time is 9:24. MR. GONZALEZ: We had a slight delay there for some video difficultfes that were being fixed by the adjuster. Hopefully we're all rolling A. WILLIAM ROBERTS, JR., & ASSOCIATES