BRITISH AMERICAN TOBACCO PLC - British American Tobacco plc subsidiary, Imperial Tobacco Canada Limited (Imperial Tobacco), reaches agreement

British American Tobacco plc subsidiary, Imperial Tobacco Canada Limited (Imperial Tobacco), reaches agreement

British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")


British American Tobacco p.l.c.

British American Tobacco p.l.c. subsidiary, Imperial Tobacco Canada Limited (Imperial Tobacco),
reaches agreement in principle to settle legacy litigation with the Flintkote Company for US $575
million

Imperial Tobacco has reached an agreement in principle with The Flintkote Company (Flintkote) - a U.S.
company formerly engaged in the production and sale of asbestos-containing products - for a total of
US $575 million for claims related to certain disputed dividends and existing and potential asbestos
claims.

The Flintkote case is a legacy litigation that began in 2006 and is completely unrelated to Imperial
Tobacco Canada’s tobacco activities.

The asbestos company, Flintkote, was a subsidiary of Genstar Corporation, which was later acquired
by Imperial Tobacco’s corporate predecessor, Imasco Limited, in 1986. It is therefore a former indirect
corporate subsidiary of Imperial Tobacco.

The 2006 litigation sought recovery from Imperial Tobacco Canada of certain dividends and other
transfers received in 1986 and 1987 after Imasco acquired Genstar Corporation. The litigation also
seeks to hold Imperial Tobacco liable for Flintkote’s asbestos liabilities.

Today’s agreement in principle of the dividend claims and the asbestos related liabilities, brings this
long running litigation to an end. Under the terms of the proposed settlement, Imperial Tobacco will
obtain protection from current and potential future Flintkote related asbestos liability claims in the
United States.

The settlement agreement now provides closure on a legacy file, allowing Imperial Tobacco to focus
on its current business by finally and completely resolving the existing Flintkote litigation and
obtaining protections from potential future litigation related to Flintkote.

Note
In order to finalise the settlement, approval by the Bankruptcy Court in Delaware and the District
Court will be required and this is expected to take place in the second or third quarter of 2015.


ENQUIRIES

British American Tobacco Press Office
Kate Matrunola/Will Hill
+44 (0)20 7845 2888 (24 hours)

Investor Relations
Mike Nightingale/Rachael Brierley
+44 (0)20 7845 1180/1519

19 December 2014
Sponsor: UBS South Africa (Pty) Ltd

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