EXHIBIT 1
     
     FOR IMMEDIATE RELEASE           CONTACT: Scott Williams
     FRIDAY, JUNE 20, 1997                202-739-0225
                                     Steve Duchesne
                                     202-739-0245
                                     Bozell Sawyer Miller Group
     
     Washington, D.C. -- The following statement regarding the settlement
     of pending litigation in Florida was issued today by Philip Morris,
     Incorporated; RJ Reynolds Tobacco Company; Brown & Williamson Tobacco
     Corporation; the Lorillard Tobacco Company; and U.S. Tobacco:
     
     Today's settlement with the State of Florida addresses the financial
     issues in Florida and is a concrete demonstration that the industry is
     prepared to cooperate with government and the public health authorities
     to emphasize that it does not want kids to smoke.  The settlement,
     however, cannot effect the comprehensive array of public health
     provisions contained in the proposed national settlement which
     addresses all of the issues involving the regulation and sale of,
     and liability for, tobacco.  The Florida agreement, like the
     Mississippi settlement, will be largely superseded by the June 20th,
     1997 comprehensive resolution, if enacted by the Congress and signed
     by the President.  
     
     This is another step in a process to end the climate of confrontation
     and litigation that has marked the national debate on tobacco related
     issues.  While this case dealt with specific concerns of the State of
     Florida, the comprehensive settlement represents the best opportunity
     to achieve immediate and meaningful resolution of outstanding issues
     regarding tobacco, including a reduction in the use of tobacco products
     by minors and the preservation of adults' rights to use tobacco.  
     
     The settlement provides Florida with a $550 million payment by
     September 15, 1997, and an additional $200 million for a pilot program
     directed at reducing the use of tobacco by kids.  Commencing in
     September 1998, the companies will pay Florida a 5.5 percent share of
     the annual ongoing payments which are contemplated to be paid to the
     states.  Without giving effect to adjustments for inflation and changes
     in sales volume, this would result in payments to Florida of $220
     million in 1998 and $247.5 million in 1999.  These payments would
     increase to $440 million by the sixth year and continue at that level
     thereafter.  Giving effect to other adjustments, Florida will receive $1
     billion from the settlement by September 15, 1998.  
     
     The industry will also be taking down all public billboards, transit, and
     stadium advertising in Florida.  A similar pilot program and the
     advertising restrictions will also be extended to Mississippi.




     
     While today's settlement is important, we remain committed to the passage
     of the comprehensive settlement we agreed to on June 20, 1997.