Exhibit 3



FOR IMMEDIATE RELEASE                               CONTACT: SCOTT WILLIAMS
MONDAY, NOVEMBER 23, 1998                                    (202) 739-0225 


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:

All the states, commonwealths, and territories have signed the settlement 
proposal that was announced on November 16, and as a result we have signed 
the settlement agreement. The settlement will become final when courts in the 
participating states approve it.  

We believe this agreement represents a step forward in addressing 
long-standing issues of concern to the states, industry and public. With 
signing the agreement, the states should be given the opportunity to 
implement the necessary public health provisions to reduce underage tobacco 
use.