News Release

Declares Regular Quarterly Cash Dividend

March 3, 2004 at 12:00 AM EST
Declares Regular Quarterly Cash Dividend Miami, FL, March 3, 2004 -- Vector Group Ltd. (NYSE: VGR) today announced the appointment of Henry C. Beinstein and Ronald J. Bernstein to its Board of Directors. Mr. Beinstein, a certified public accountant and a money manager at Gagnon Securities LLC, is an independent director who will serve as head of the audit committee. Mr. Bernstein is President and Chief Executive Officer of the Company’s Liggett Vector Brands and Liggett Group subsidiaries.

Vector Group also announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share, payable on March 29, 2004 to holders of record as of March 19, 2004.

“We are very pleased to have Hank and Ron as new board members,” said Bennett S. LeBow, Chairman and CEO of Vector Group. “Hank brings many years of senior financial management experience to Vector and we know he will make a significant contribution to the Company. Ron has already proven to be an invaluable asset to Vector and we are confident that his vast tobacco industry experience will continue to serve us well in this expanded capacity. ”

Prior to joining Gagnon Securities in September 2002, Henry C. Beinstein held several senior managerial positions at leading New York-based law firms. He was the Executive Director of Schulte Roth & Zabel LLP from August 1997 through August 2002; Managing Director of Milbank, Tweed, Hadley & McCloy LLP, from November 1995 through July 1997; and Executive Director of Proskauer Rose LLP, from April 1985 through October 1995. Mr. Beinstein is a certified public accountant in New York and New Jersey and a former partner and National Director of Finance and Administration at Coopers & Lybrand. Mr. Beinstein is a director of Ladenburg Thalmann Financial Services Inc., New Valley Corporation and Dyson-Kissner-Moran Corporation.

Ronald J. Bernstein has served as President and Chief Executive Officer of Liggett Group since September 1, 2000 and of Liggett Vector Brands since March 2002. From July 1996 to December 1999, Mr. Bernstein served as General Director and, from December 1999 to September 2000, as Chairman of Liggett-Ducat Ltd., Vector Group’s former Russian tobacco business which it sold in 2000. Prior to that time, Mr. Bernstein served in various positions with Liggett, including Executive Vice President and Chief Financial Officer.

Vector Group is a holding company that indirectly owns Liggett Group Inc., Vector Tobacco Inc. and a controlling interest in New Valley Corporation. Additional information concerning the company is available on the company’s website, www.VectorGroupLtd.