Press Release

September 6, 2006 at 12:00 AM EDT

Vector Group Declares Quarterly Cash Dividend

VECTOR GROUP DECLARES QUARTERLY CASH DIVIDEND MIAMI, FL, September 6, 2006 – Vector Group Ltd. (NYSE: VGR) today announced that it has declared a regular quarterly cash dividend on its common stock of $0.40 per share. Additionally, the Company declared its regular annual stock dividend of 5%. Both the quarterly cash and the annual stock dividends are payable on September 29, 2006 to holders of record as of September 20, 2006.

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

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Contact:
Paul Caminiti/Brandy Bergman/Carrie Bloom
Citigate Sard Verbinnen