|

Dear Investors, Customers, Employees and Friends:
Welcome to the Vector Group Ltd. website. Through our subsidiaries,
Liggett Group Inc. and Vector Tobacco Inc., we manufacture and market
high quality cigarette products to adult smokers in the United States.
Vector Group also owns New Valley LLC.
Vector Group’s tobacco subsidiaries have a proud history of charting
an independent course in the tobacco industry, dating from Liggett’s
founding in 1873. In 1996, Liggett became the first tobacco company
to settle certain smoking-related litigation. A year later, we led
Liggett into its landmark announcement that smoking is addictive
and causes cancer and other health ailments. To this day, Liggett
– the fifth largest cigarette manufacturer in the U.S. – remains
the only major tobacco company to carry “Smoking Is Addictive” warning
labels on its cigarette packs and to list ingredients on its cartons.
Liggett has a strong collection of discount cigarette brands, which
includes Liggett Select, one of the fastest growing brands in the
deep discount category. Liggett also offers Pyramid, Jade and Eve
branded discount products.
Our Vector Tobacco subsidiary is focused on developing and bringing
to market smoking products with science-based reductions in certain
harmful compounds. Vector Tobacco introduced its revolutionary low
nicotine and nicotine-free Quest cigarette brand in January 2003.
Quest, designed for adult smokers who are interested in reducing
the amount of nicotine in their cigarettes, comes in three levels
of nicotine, to give adult smokers the opportunity to gradually
step to nicotine-free smoking.
Vector Group is also involved in the real estate business through
its New Valley subsidiary. New Valley owns
a 50% ownership interest in Douglas Elliman Realty LLC, which operates
the largest residential real estate brokerage company in the New
York metropolitan area.
We continue to strive to deliver high quality products to our customers
and increased value to our shareholders. We thank our shareholders,
employees, customers and clients for their continued support.
Sincerely,

Bennett S. LeBow
Executive Chairman
|