News Release

MIAMI, FL, April 29, 2008 – Vector Group Ltd. (NYSE: VGR) today announced that it has commenced an offer to exchange its 11% Senior Secured Notes due 2015, which were sold in August 2007 pursuant to Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), for an equal amount of newly issued 11% Senior Secured Notes due 2015. The new notes have substantially the same terms as the original notes, except that the new notes have been registered under the Securities Act.

Vector Group Ltd. will accept for exchange any and all original notes validly tendered and not withdrawn prior to 5:00 p.m. New York City time on May 28, 2008 (the "expiration date"), unless extended. Tenders of original notes may be withdrawn at any time prior to 5:00 p.m. New York City time on the expiration date.

The terms of the exchange offer and other information relating to Vector Group Ltd. are set forth in the prospectus dated April 29, 2008. Copies of the prospectus and the related letter of transmittal may be obtained from U.S. Bank National Association, which is serving as the exchange agent in connection with this exchange offer. U.S. Bank's address, telephone number and facsimile number are as follows:

U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107-2292
Attention: Corporate Trust Department
Phone: (800) 934-6802
Facsimile: (651) 495-8158

This press release shall not constitute an offer to exchange or a solicitation of an offer to exchange the original notes. The exchange offer is made only by the prospectus dated April 29, 2008.

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/Carrie Bloom/Jonathan Doorley
Sard Verbinnen & Co
212/687 - 8080