Press Release

April 1, 2002 at 12:00 AM EST

Vector Group Reports 2001 Fourth Quarter And Full Year Financial Results

Vector Group Reports 2001 Fourth Quarter and Full Year Financial Results

Vector Group Reports 2001 Fourth Quarter and Full Year Financial Results

MIAMI, FL, April 1, 2002 -- Vector Group Ltd. (NYSE: VGR) today announced financial results for the 2001 fourth quarter and the full year ended December 31, 2001.

Full year 2001 revenues were $744.2 million, compared to $649.5 million for 2000. The 2000 results include $107.3 million of revenues from the Company’s former Russian tobacco business, Liggett-Ducat Ltd., sold in August 2000. The Company recorded operating income of $31.3 million for 2001, compared to operating income of $40.1 million for 2000. Net income for 2001 was $20.7 million, or $0.58 per diluted common share, compared to net income of $174.2 million, or $5.99 per diluted common share, for the 2000 period, which included a gain of $161.0 million (including the Company’s share of New Valley’s gain), net of income taxes and minority interests, from the sale of Liggett-Ducat.

Fourth quarter 2001 revenues were $225.1 million, compared to revenues of $145.2 million in the fourth quarter of 2000. The Company recorded an operating loss of $6.2 million in the 2001 fourth quarter compared to operating income of $17.7 million in the fourth quarter of 2000. Net loss in the 2001 fourth quarter was $1.1 million, or $0.03 per diluted common share, compared to net income of $13.7 million, or $0.47 per diluted common share in the 2000 fourth quarter.

For the three months and year ended December 31, 2001, Liggett Group Inc. had revenues of $216.6 million and $728.2 million, respectively, compared to $144.4 million and $539.1 million for the three months and year ended December 31, 2000, respectively. Liggett’s operating income before factory relocation, non-cash compensation and settlement expense was $30.0 million for the fourth quarter of 2001 and $116.5 million for 2001, compared to $21.5 million for the fourth quarter of 2000 and $73.0 million for full year 2000, respectively.

CONFERENCE CALL TO DISCUSS FOURTH QUARTER AND YEAR-END RESULTS

As previously announced, the Company will host a conference call and webcast on Tuesday, April 2, 2002 at 10:00 A.M. (EST) to discuss fourth-quarter and year-end results. Investors can access the call by dialing 877-692-2591 or via live webcast at www.vcall.com

A replay of the call will also be available shortly after the call ends on April 2, 2002 through April 9, 2002. To access the replay, dial 877-519-4471 and enter 3189166 as the conference ID number. The archived webcast will also be available at www.vcall.com for 30 days.

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