2018 Notice to Vector Group Ltd. Stockholders

Vector Group Ltd. anticipates 35% to 50% of its 2018 cash distributions were dividends and the remaining 50% to 65% of 2018 cash distributions were nontaxable returns of capital

Vector Group Ltd. (NYSE: VGR) anticipates 35% to 50% of its distributions paid in 2018 on its common stock were taxable dividends and the remaining 50% to 65% were nontaxable returns of capital. Final determinations will be made available on or about October 15, 2019.

After the final determination, each stockholder will then receive a “Corrected” Form 1099-DIV reflecting the correct amounts in Box 1a, Box 1b and Box 3.

These distributions consisted of four quarterly cash distributions paid in 2018.

Distributions that are not taxable as dividend income must be applied to reduce the adjusted tax basis of the shares on which the distributions are paid. If the nontaxable distributions exceed the stockholder’s basis in the Vector Group stock, a capital gain will result.

Stockholders should secure their own tax advice regarding the status of cash and property distributions under applicable federal, state and local tax laws.

Upon final determination, the Company will complete and post on its Internet Site the Internal Revenue Service’s report of organizational actions affecting basis of securities at http://www.vectorgroupltd.com/form-8937/.

Stockholders should secure their own tax advice regarding the status of cash and property distributions under applicable federal, state and local tax laws.