Vector Tobacco Hires 20-Year Lorillard Veteran as Vice President of Sales

Business Wire, June 26, 2001

Business Editors

MIAMI--(BUSINESS WIRE)--June 26, 2001

Vector Group Ltd. (NYSE: VGR)--

Richard DiDonato Will Head Up Sales Efforts for Vector Tobacco's Coming OMNI and OMNI Nicotine Free Products

Vector Group Ltd. (NYSE:VGR) today announced that its Vector Tobacco subsidiary has hired Richard J. DiDonato as Vice President of Sales. At Vector Tobacco, Mr. DiDonato will head up the sales effort for the Company's coming less hazardous tobacco products, OMNI and OMNI Nicotine Free.

"We're very excited that Richard DiDonato, a top producing sales executive with more than 20 years of experience and an outstanding industry reputation, is joining Vector Tobacco," said Bennett S. LeBow, Chairman and Chief Executive Officer of Vector Group. "Richard's proven track record in the introduction of new brands and products makes him the perfect fit for Vector Tobacco as we prepare to launch our coming OMNI and OMNI Nicotine Free brands. We wholeheartedly welcome Richard to the Vector team."

Prior to joining Vector Tobacco, Richard J. DiDonato, 42, served as Director of Sales, Northeast States, for Lorillard Tobacco Company from 1997 until June 2001. In that position, Mr. DiDonato oversaw the sale, distribution, promotion and merchandising of all Lorillard cigarette products sold in all classes of trade throughout the Northeast. Among his responsibilities in that position, Mr. DiDonato executed national and regional sales programs and product line expansion and coordinated the activities of more than 350 sales personnel. From 1991 to 1997, Mr. DiDonato was a Regional Sales Manager for Lorillard. Since 1980, he held numerous sales-related positions at Lorillard.

"I'm thrilled about joining Vector Tobacco at this very exciting time for the Company and look forward to the opportunity to work on such innovative new products as OMNI and OMNI Nicotine Free," said Richard J. DiDonato. "My professional experience with new products, strategic improvement of market share, and development and leadership of a highly motivated, dedicated and productive sales force have prepared me well for the task at hand -- and I'm eager to get started."

Vector Tobacco has the rights to a process that enables the production of tobacco that is virtually free of nicotine and virtually free of tobacco specific nitrosamines (TSNAs), a potent carcinogen found in tobacco. In addition, Vector Tobacco has developed a proprietary technology that significantly reduces one of the most serious cancer-causing agents in cigarettes, carcinogenic polycyclic aromatic hydrocarbon (PAH) compounds. Vector Group expects to introduce these new products later this year and in early 2002 under the names OMNI and OMNI Nicotine Free. Both OMNI and OMNI Nicotine Free light, smoke and taste the same as conventional cigarettes.

Vector Group is a holding company that indirectly owns Liggett Group Inc., Vector Tobacco and a controlling interest in New Valley Corporation.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties and contingencies include, without limitation, the challenges inherent in new product development initiatives, the Company's ability to raise the capital necessary to grow its business, potential disputes concerning the Company's intellectual property, potential delays in obtaining any necessary government approvals of the Company's proposed virtually nicotine-free tobacco products, potential delays in obtaining the tobacco needed to produce the Company's proposed new products, market acceptance of the Company's proposed new products, competition from companies with greater resources than the Company and the Company's dependence on key employees. See additional discussion under "Risk Factors" in Item 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2000, and other factors detailed from time to time in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or advise upon any such forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.