Press Release

May 15, 2001 at 12:00 AM EDT

Vector Group Raises $100 Million To Fund Promotion Of New Tobacco Products

Vector Group Raises $100 Million to Fund Promotion of New Tobacco Products

Vector Group Raises $100 Million to Fund Promotion of New Tobacco Products

Vector Group Ltd. (NYSE: VGR) today announced that its has entered into an agreement with High River Limited Partnership, [an entity affiliated with Carl Icahn/an investment entity controlled by Carl Icahn] under which High River will purchase 1,639,344 shares of Vector Group common stock at $30.50 per share. Pursuant to the agreement, High River has agreed not to sell or transfer the shares for a on-year period.

Vector Group is a holding company that indirectly owns Liggett Group Inc., Vector Tobacco and a controlling interest in New Valley Corporation. Effective May 24, 2000, Vector Group changed its name from Brooke Group Ltd.