Exhibit 2

FOR IMMEDIATE RELEASE                           CONTACT: SCOTT WILLIAMS
FRIDAY, NOVEMBER 20, 1998                                (202) 739-0225 
                                                         STEVE DUCHESNE
                                                         (202) 739-0245

WASHINGTON, D.C.--THE FOLLOWING STATEMENT REGARDING THE SETTLEMENT OF PENDING 
STATE LAWSUITS WAS RELEASED TODAY BY PHILIP MORRIS, INCORPORATED; R.J. 
REYNOLDS TOBACCO COMPANY, BROWN AND WILLIAMSON TOBACCO CORPORATION; AND THE 
LORILLARD TOBACCO COMPANY:

We have been advised that all remaining states and jurisdictions have agreed 
to the settlement proposal that was announced on November 16.  We expect to 
receive confirmation of this fact shortly, and we intend to sign the 
settlement on Monday, November 23, as planned.

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