WINS $3.5 MILLION

ALTADIS U.S.A. WINS $3.5 MILLION TOTAL IN YET ANOTHER JUDGMENT IN COUNTERFEITING CASE

On March 25, 2005, the United States District Court in Ft. Lauderdale, FL, awarded Altadis U.S.A. and their subsidiaries judgments totaling $3.5 million in their counterfeiting and trademark infringement lawsuit against two now inactive Florida corporations (South Beach Cigar Factory, and Tabacaleras Cubanas S.A. Corp. d/b/a Cuba Habanos U.S.A.) and their principal owner Rodolfo Morejon. Altadis U.S.A.'s Cuban Cigar Brands, N.V. and Max Rohr, Inc. divisions received statutory damages of $2 million and $1.5 million respectively.

The lawsuit centered on counterfeiting and trademark infringement involving four of Altadis U.S.A.'s brands - Montecristo, Romeo y Julieta, H. Upmann and Saint Luis Rey. In addition to the monetary award, the defendants are ordered to recall all counterfeit products, promotional and packing materials and deliver them to Altadis U.S.A. for destruction. They are also permanently enjoined from engaging in any activities employing graphics that are "confusingly similar" to the above-mentioned registered trademarks.

The recent judgment is the latest in a series of awards to Altadis U.S.A. in their aggressive pursuit of counterfeiters in the cigar industry. "This was another important victory for Altadis, its distributors, consumers and the entire industry as well," said Theo Folz, President and CEO of Altadis U.S.A. He added: "In today's highly competitive world, protecting brand names and trade designs and controlling high standards of quality are critical for the successful marketing of brands, particularly those that have established a loyal following. Altadis U.S.A. will continue to pursue legal remedies against counterfeiters and those who sell counterfeit cigars."

NOTICE TO THE TRADE

Altadis U.S.A. is strongly committed to vigorous enforcement of its trademark rights and will seek criminal prosecution of anyone who would infringe those rights. Altadis U.S.A. continues to work with state and federal law officials to use anti-counterfeiting laws to secure convictions of counterfeiters of our brands.

If we learn that any importer, distributor, retailer or other member of the Trade is dealing in counterfeit cigars or cigar packaging of our brands, we will proceed against you aggressively through civil and/or criminal channels. In addition to criminal prosecution, in appropriate cases, we will invoke the civil provision of the federal trademark law that allows courts to award trademark owners like Altadis U.S.A. up to $1 million in statutory (non-compensatory) damages per counterfeited mark, as well as their attorney's fees. We have been awarded damages and attorney's fees of $1 million to $3.5 million in such cases.

Altadis U.S.A. also continues to work successfully with U.S. Customs to arrange for the seizure and destruction of shipments of counterfeit cigars and packaging materials. Members of the Trade who have paid for cigars that turn out to be counterfeits and are thus seized by US Customs should be aware that in such circumstances they will find themselves without recourse. Counterfeiters do not refund monies paid nor are they in a position to make good with legitimate product with the quality and prestige of Altadis U.S.A.'s brands. Additionally, Altadis U.S.A. reserves the right to cancel as direct accounts, those parties who trade in counterfeit cigars.

Altadis U.S.A.'s premium brands include, among others: Montecristo, H. Upmann, Romeo y Julieta, Trinidad, Don Diego, Santa Damiana, Cabanas, Por Larranaga, La Corona, Saint Luis Rey and Quintero.

We caution the Trade against engaging in illegal activity in violation of our rights in any of our brands and ask you to inform us immediately if you receive solicitations for products that violate such rights.

MONTECRISTO GOLF SETS FOR THE CIGAR-LOVING GOLFER

Now that Spring has sprung across America, Altadis U.S.A. is offering the perfect item for cigar-loving golfers: their Montecristo Golf Sets.

Packaged in attractive wooden gift boxes (that can double as humidors) and bearing the Montecristo emblem, each set contains: 27 Montecristo cigars in a variety of sizes (nine Montecristo White, nine Montecristo Platinum and nine Montecristo Serie V) as well as a sleeve of golf balls and tees imprinted with the famous Montecristo crossed sword logo.